How Much Health Insurance Do I Need?

How Much Health Insurance Do I Need?

Imagine being hit by a car or your child just becoming ill all of a sudden or you are faced with unexpected medical bills that shake your finances to the core. What would you do in this case? How would you cope?

That is where the safety net of health insurance comes in. Health insurance is important for managing healthcare costs without crippling your financial well-being.

Understanding Risks and Your Needs

The term risk in general is essentially the uncertainty of loss in situations where the future is unknown. In insurance, it can refer to the insured property/item, the cause of loss, the financial value at stake, or any uncertain future occurrence.

So it is important you evaluate your health, lifestyle, environment and family medical history. These three factors influence the type and extent of insurance coverage you will need.

So ask yourself these questions:

Health: Are you generally healthy, or do you have pre-existing conditions?

Lifestyle: Do you engage in risky activities that could lead to injuries?

Environment: Do you live in areas with high pollution levels? Does your area have a high rate of accidents (e.g., busy streets of Lagos)

Family History: Is there a history of chronic illnesses in your family?

By evaluating these factors, you can avoid being under-insured (not having enough coverage) or over-insured (paying for more coverage than you need).

Exploring Coverage Options

In Nigeria, common coverage plans include:

  • Health Maintenance Organizations (HMOs): HMO is an acronym for ‘Health Maintenance Organisations’ in Nigeria. These organizations are charged with the responsibility of managing the provision of standard healthcare services via a network of hospitals under the plan. They serve as a middleman between the hospital and clients seeking healthcare services.
  • Preferred Provider Organizations (PPOs): This is a type of medical plan, where you make arrangements with an insurance company in which a network of medical professionals like hospitals and physicians provide services at a lower rate.
  • High-Deductible Health Plans (HDHPs):  A health insurance plan with a higher deductible with a lower premium than a traditional insurance plan. So you pay more health care costs yourself but the monthly premium is low.

Each of them offers different levels of flexibility, coverage, and out-of-pocket costs.

Estimating Your Coverage Needs

To estimate your coverage needs, you need to:

  • Consider  and check your regular medical expenses
  • Look out for potential emergencies
  • Know that there’s a possibility of chronic illnesses or surgeries
  • Aim for a plan that covers your average healthcare costs for a period you can pay for.
  • Consider a need to make coverage for unforeseen events.

Making the Right Choice

Making the right choice in insurance includes researching and gathering quotes from multiple insurance providers to compare options. Platforms like Getinsurance can simplify this process, helping you find a plan that matches your needs and budget.


Selecting the right medical health insurance requires a clear balance between coverage and cost. By understanding your needs, coverage and exploring all options, you can secure a plan that gives you peace of mind and financial stability in the face of health challenges.

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Written by Joseph

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