How much health insurance should you buy and when — an age-wise breakup

The amount of insurance one needs depends on several factors, including age, income, expenses, debts, dependents, location, current health status, lifestyle habits and financial budget.

Here are some general guidelines on how much insurance one may need based on different ages:

Insurance in 20s

In their 20s, people are energetic and in the prime of health, which may be the reason why they ignore the importance of investments, including insurance.

According to Aniruddha Sen, Co-Founder at Kenko Health, getting insurance at a younger age comes with fewer premium costs due to no old-age ailments and related risks being involved.

"It is best to get insurance as soon as one is eligible because premiums are a lot more affordable. People in their 20s can take basic insurance first and add on coverage later in life when required. This will have many long-term benefits since they would be able to save more progressively," Sen told CNBC-TV18.com.

Insurance in 30s

The 30s comes with increased responsibilities towards work, family, finances, and dependents. Now it's the time to evaluate financial ability and health and get insurance accordingly.

"If one has a cover, then he/she can increase its amount after every significant event in life, such as marriage or home purchase. He/she must also plan for comprehensive health cover for family that covers not only expenses on critical healthcare in case of unforeseen events but also out-of-pocket expenses on doctor consultation, diagnostics, medicines etc. This will also ensure a good financial health," Sen said.
Insurance in 40s and 50s

The cost of insurance sees a surge as one ages, and it is always wise to estimate any health problems that one might encounter at this time. When people are in their 60s, it becomes a far more expensive proposition. During this time in life, one should start thinking about retirement and looking through good plans for the same.

"It is also crucial that one should review the insurance coverage annually. If possible, make it a practice to increase it by 10-15 percent post-30s to avoid paying a higher premium at a later stage. Planning is crucial whether it is wealth or health. Therefore, think wisely and invest in plans that offer comprehensive coverage as far as health is concerned," Sen told CNBC-TV18.com.

Insurance in 60s and above

As individuals approach this age, they may be more prone to chronic lifestyle diseases such as hypertension, diabetes, and arthritis. They may require more frequent medical attention, which may increase healthcare expenses.

According to Sharad Mathur, Managing Director & Chief Executive Officer at Universal Sompo General Insurance, a health insurance plan that offers comprehensive coverage for preventive health care, chronic disease management, and hospital stays may be suitable for needs.

"In view of this, people in early 60s should have minimum Rs 31-50 lakh of insurance coverage," Mathur told CNBC-TV18.com.

For people above 65, healthcare needs may become more complex, and they may require more frequent medical attention, including need for knee replacement and other orthopaedic surgeries.

"A health insurance plan that offers comprehensive coverage for preventive health care including outpatient treatment covering doctors visit, investigation and prescription drugs, chronic disease management, and hospital stays may be suitable for needs. It is recommended to have minimum Rs 51 lakh to Rs 1 crore of insurance coverage," Mathur said.