Can You Have Too Much Insurance Coverage

How do I find the best health insurance coverage?

It is advisable to go for standard health policy,however I suggest you thatAvoid stand alone Heath Insurer as they have limited resource to balance their portfolio as health insurance has very high ICR ,the cost burden will pass to the insured by premium rise or abrupt claim control.PSU companies are best .Please keep in mind that health insurer is just like marriage knot ,it is not easy to change the insurer as most of the benefits accrue on continuous coverage.Be wise in choosing sum insured keeping in mind age, habits ,lifestyle of yourself and dependents.Please note that admissible amount of room charges,Doctor/Surgeon's fees/investigation charges are usually linked with sum insured selectedCheck co pay,read exclusions and conditions ,check waiting period for specified diseases.Timely submission of intimation and claim documents are very important.Last but not the least take advise of experienced agent/consultant ,repeat experienced don't mess your health insurance with new agent .

How much term insurance cover should you have?

This is a very important question. There are lot of formulas to determine the value of insurance one needs. To simplify i will give you 2 options.1st - Your insurance cover should be around 15 - 20 times of your annual salary. For eg. If you annual salary is around 3 Lacs. Then you should have a cover of around Rs.45 - Rs.60 Lacs. This is the simplest formula.2nd - Your life insurance cover should replace your monthly income in case of your death. This is after repaying all your debt. So calculate your monthly expense, increase that by 10% every year (To factor inflation), multiply this by no of years left to turn 60 ( Retirement Age). Add your debt in that. The amount you get should be the cover you should buy.Both these options are simple options which you can calculate yourself. You can also opt for various calculators available online which can give you your required answers

How much health insurance cover should be booked?

There is no thumb rule to it. Each individual is different and hence his/her health insurance coverage need is different.Nevertheless, you can try and understand the adequacy of the coverage and increasing it if required.There are several factors to determine the value of health insurance one needs. Some of them may be:1. Coverage Amount Vis-a-Vis % Of Income - Your health insurance should cover between 50-100% of your annual income. For eg, if you have spent 2 lakh on medical expenses over 3 years, then you should add those 2 lakh also to your health insurance cover.2. Family History - If you have a family history of lifestyle diseases, the probability of it being passed on to the next generation is higher. Any individual who is in a genetically high-risk category should buy wider health insurance coverage when he is young and healthy.3. Age Factor - If you start buying health insurance at the age of 25, you can buy a plan of around Rs 5-10 lakh. The coverage can then be increased by 10-15% every year. The earlier the better, as it means you have lesser pre-existing diseases.4. Network Hospitals - Treatments in different hospitals costs you differently. Depending on what kind of hospital or grade of hospital you would generally choose to be hospitalised, will determine the amount of health cover required.These apart, you can also try various calculators available online which can give you your required answer.