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 coverage for the expenses that incur during medical emegrency or planned hospitalization. If the medical bills are more than the sum insured, then policyholders have to bear the remaining amount from their pockets. 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. 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. Under the policy coverage, Rs.2 lakhs will be paid and the remaining amount of Rs.35,000 has to be borne by the policyholder.


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. Understanding everything related to insurance is difficult. Hence, we are there to make things easier for you.

Disclaimer: Plan features, benefits, coverage, sum insured and underwriting of claims are subject to policy terms and conditions. Please refer to the brochure, sales prospectus, and policy documents carefully.


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