How Much Health Insurance Coverage Should I have to be Considered Sufficient

Do you know how much insurance should you buy? How to determine sufficient insurance coverage? How much insurance should single women buy? How much insurance should a new father buy for his new born baby?

HOW TO DETERMINE SUFFICIENT HEALTH INSURANCE COVERAGE?

1) 10% OF MONTHLY SALARY

Most of the fresh graduate jobs do not earn lot money due to lack of working experience and technical/products knowledge in the field. This is the simplest method for younger people or fresh graduates to be used to determine how much health insurance coverage they should have. Your monthly health insurance premium is not advisable to exceed 10% of your monthly salary.

Example:
Assume your Current Monthly Salary = $2500
Recommended Total Monthly Health Insurance Premium
= 10% x $2,500
= $250 / month

2) TOTAL SUM INSURED = 5 YEARS SALARY INCOME

During the time you are looking for baby names for your new born baby, in the meantime, I believe you are getting yourself busy to buy all the baby needs like baby cloths, baby shower games, baby furniture, baby shoes and many more things. In other words, your burden has been increased. Do not forget about your parents, they are getting older and might become part of your commitment to take care on them. Definitely it is responsibility for everyone as a son or daughter. How bout your wife? She might have scarified her career to take care on your family matters especially your children and parents. Now, have your realized before how important is your role to support all the living cost for every one of your family members? What will happen if you suddenly lost your income due to an accident or lose your job?

Therefore, there is another recommendation from financial experts on how to determine sufficient health insurance coverage for your family and yourself; ensure your total sum insured coverage is enough to support your basic living cost for 5 years.

Example:
Assume your current monthly salary is $2500
Recommended Total Health Insurance Sum Insured 
= $2,500 x 12 months/year x 5 years
= $150,000

3) CONSIDERATION BASED ON COMMITMENT

We must well aware about the total of every single outstanding loan amount. That will be our debt. Can you imagine what will happen to our family members if one day we have lost our ability to work, to earn money, to support the family member’s living costs? How bout all those bad debt which will further increase their burden? So this is an idea mainly to be considered on your sufficient health insurance coverage based on debt. This proper planning on insurance coverage issue will leave your lovely family members a peaceful of mind in future.

Example:
Car Loan Outstanding Amount = $50,000
Mortgage Loan Outstanding Amount = $180,000
Personal Loan Outstanding Amount = $10,000
Recommended Total Health Insurance Sum Insured 
= Total Outstanding Loan Amount or Commitment
= $240,000

Insurance is just function like an emergency lighting during you breaks down at middle of the highway at midnight. It might not able to cure your problems but it helps you and eases your burden during your hard time. Therefore, emergency preparedness is very important to ensure your lovely family members are protected well. You may get financial aid or financial advice from your financial planner.