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Sum Insured Matters a lot in your medical insurance policy to cover your majority medical expenses

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Published on April 15, 2021. EST READ TIME: 3 minutes

While we know that buying a health insurance policy is extremely crucial, choosing the best one for yourself and your family is not the easiest of jobs. With different insurers offering policies with various benefits, it can be confusing for the customers. But there’s one thing that is more important than others and that is the sum insured. The cost of quality healthcare is constantly rising and you would want your health insurance to help you avail that. Also, in cases of extended hospitalisation during the treatment of critical illnesses, the bills keep mounting. All such issues can be easily resolved if you have a sum insured that is sufficient to provide you with a financial shield against the potential risks. Here’s more on why sum insured, matters a lot in your medical insurance policy to cover your majority of medical expenses

What is Sum Insured?

The sum insured is the maximum amount that an insurer will pay to the policyholder in a year in case of hospitalisation. If the hospitalisation cost is less or equal to the sum insured, the entire amount will be paid by the insurance company. But if the amount exceeds the sum insured, then the additional cost will be paid by the policyholder. For instance, you have health insurance with a sum insured of INR 5 lakh and you were hospitalised twice in the year. The total hospital bill came to INR 5.5 lakh. The insurer will pay only the sum insured, that is, INR 5 lakh, while the remaining INR 50,000 will be from your pocket.

However, in a year if you don’t make any claims or the hospitalisation cost is less than the sum insured, the balance amount will not be refunded at the end of the policy tenure.

Why the Sum Insured matters in your health insurance?

A health insurance policy provides financial protection in case of a medical emergency. But what if you find out that in times of actual crisis, the policy fails to provide the much needed protection? That is, while filing the claim, your insurer pays the sum insured, but a major chunk of the expenses is from your pocket. Stressful, isn’t it?

Well, this is because of the sum insured. Choosing the right sum insured is as important as choosing the right health insurance policy. A high sum insured means paying a bigger premium, but that will help you tide over the financial crisis. Medical expenses are rising by the day and you would not want to be drained of your savings by paying the mounting hospital bills. Thus, it is advisable to go for a higher sum insured so that the insurer pays the maximum amount in case of a claim. 

How to choose the Right Sum Insured?

Now that you know why sum insured matters in your health insurance, let’s understand the factors which will decide how to choose the right sum insured:

• Age: If you purchase health insurance at a young age, a low sum insured will be enough as there is less risk of suffering from a medical condition. But as we age, we become vulnerable to a host of ailments and there is a need for higher sum insured to tackle the rising medical expenses.

• Health condition: If you suffer from any ailments that require frequent medical attention or hospitalisation, going for a higher sum insured is a wise option.

• Lifestyle: A healthy life depends a lot on our lifestyles. If you have a sedentary life, follow poor food habits with little or no exercise regime, it is going to impact your health. A high sum insured will give you added financial protection in case of a medical emergency.

• Family: If you have taken a family floater, the sum insured will be shared by the entire family in case of multiple claims in a year. A higher sum insured will ensure all the members are adequately covered.

Conclusion 

With a  MEDICLAIM POLICY, you can avail the best healthcare facilities without worrying about the financial aspects. But what you should not overlook is the sum insured. Going for a low sum insured because the premium is low will defeat the whole purpose of the health cover. It is best to choose the right sum insured for added protection.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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