What is Sum Insured in Health Insurance?


what is sum insured in health insurance

Health insurance plays a significant role in securing your savings as it offers ample benefits. But, buying health insurance blindly is of no help, until you are fully aware of its benefits. If you are finding it difficult to understand each of its terminologies, then you are not alone. Another most talked benefit offered by a health insurance policy is the sum insured in insurance

Sum insured in health insurance is the amount that is offered to the insured in case of an unforeseen situation such as medical exigency. This amount is a reimbursement of the cost that the insured bears in case of a loss. If the amount borne by the insured is more than the sum insured, in that case he or she has to bear the extra cost. It is based on the principle of indemnity. 

Opt for the Right Sum Insured for your Health Insurance Plan

Having a health insurance plan beforehand is a wise move. It is always advised to opt for a the right sum insured as there can be situation when the medical expenses can be high. Even after the sum insured is paid by the insurer, there can be enough amount that is to be paid by them. Hence, it is advisable to opt for a right sum insured to secure yourself from such situations.

In this way, you can secure your savings. It is extremely important to opt for the right sum insured for the following reasons:

  • A higher sum insured is important as it offers sufficient cover in case of an exigency.
  • It helps in saving your head-earned money.
  • In case of a family floater health insurance, opting for a high sum insured is very beneficial. Since the family shares the sum insured of your plan, in case of various claims in the same year a lower sum insured would not suffice. Whereas in the case of the higher sum insured, you are assured that your dear ones are covered. 

How Sum Insured in Insurance Works?

For a better understanding, let’s suppose if the sum insured is 2 lakhs and you or anyone from your family has been hospitalized thrice. The first time, the medical bill amounted 50,000  and the second time the bill comes 70,000  The last time the hospital bill is 1 lakh 15 thousand. This makes the total amount is 2 lakhs thirty-five thousand. The insurer will pay only 2 lakhs and the remaining amount is 35 thousand that is borne by the insured. 


With the increasing healthcare expenses, it is difficult for a common man to bear these expenses. Hence, it is advised to opt for a sum insured of maximum value that secures you from financial risk.

If you are looking for a policy, then it is always a good idea to look for some of the benefits and opt for a comprehensive plan. In case of any queries related to the health insurance plan, you can rely on Care Health Insurance (Formerly Religare Health Insurance). Understanding everything related to insurance is difficult. Hence, we are there to make things easier for you.