When buying a personal health insurance you need to consider many aspects even if you have corporate insurance. A policy worth Rs 5 lakh may have seemed sufficient a few years ago, but rising hospital bills, expensive treatments and medical inflation have changed the equation. 

For someone earning Rs 10 lakh a year, the right cover may look very different from that of a person earning Rs 30 lakh. But you need to understand that salary alone doesn't dictate what is necessary. Overall, it depends on how much you can afford to pay out of pocket without disrupting your finances.

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How much health insurance cover do you need?

Your salary can be a starting point, but it should not be the only factor when deciding the amount of health insurance cover you need. 

If you earn Rs 10 lakh a year: 

A base health cover of Rs 10 lakh could be a starting point. But such insurance is unlikely to help you 25 years from now. If you have any pre-existing diseases, you may consider a higher sum.

Many insurers tend to offer annual coverage growth, 100% restoration policy and other benefits like unlimited one-time cover. 

Even if you start with a lower base, these benefits can help you keep up with medical inflation. Some benefits can attract a higher premium, so must discuss them in advance with the provider.

Since your take home pay is modest, you also need to consider whether you want a co-pay option. Co-payment lowers your premium but you need to pay an initial value from your pocket. If you already have corporate insurance, opting for co-pay can make premiums more affordable for you.

If you earn Rs 20 lakh a year: 

You could consider Rs 10 lakh-Rs 15 lakh as base cover. 

You may also ask your provider for a super-top up policy, especially if you have dependents. 

Ultimately, you must compare the benefits that will come if you opt for a higher base sum and whether the additional premium is worth it.

Depending on your lifestyle expenses and EMIs, you can also decide if you want a co-pay option to lower the premium or are comfortable paying a high amount.

If you earn Rs 30 lakh a year: 

A base cover of Rs 20 lakh or above may be worth considering. 

If you live in a metro city, medical bills can be significantly higher compared with tier-2 or 3 towns. 

While a higher base sum is recommended, you should not purchase it without checking if it comes with benefits like annual add-on and 100% restoration. 

Between a Rs 10 lakh base and a Rs 25 lakh base cover, the main benefit comes with restoration policy. If you exhaust your cover for a particular year, many insurers restore your cover to the base sum assured. In that case, a Rs 10 lakh cover leaves you with little security in case you want to make more claims.

With higher cover, you are more likely to get benefits like no cap on room rent, consumables included, etc. These can help you save some costs. Some insurers also provide the option to lock the premium for two or three years together. If you have the financial flexibility to club your premiums in advance, you can end up protecting your money from the impact of annual medical inflation.

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You also need to be careful about waiting periods for pre-existing diseases, deductibles, network hospitals, pre and post hospitalisation rules, and overall claim settlement process of an insurer before finalising the policy. Health related hospitalisations can be very challenging, so the key goal of an insurance policy is to prevent any unexpected surprises when you already have too much on your plate.
 

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