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What is the Sum Insured in Health Insurance?

What is Sum Insured in Health Insurance_ - (1)

You have a hard time understanding all the terminology used in insurance, right? You’re not alone. We understand that reading the 50 pages that most insurance companies publish can be boring and stressful.

The terminology used is difficult, but it is also very important that you understand it both inside and outside of your policy. But don’t worry, we are here to make your life easier. After all, that’s what we stand for. Simplify insurance.

The sum insured is an important term that comes up from time to time. After reading this article, you too can master it.

What is the sum insured?

The sum insured is the amount that is made available to the insured during an unforeseen event such as a medical emergency, theft, damage to the vehicle, etc.

This amount is not a cash benefit, but simply a reimbursement of the costs that the insured bears in the event of a claim.

Any insurance other than life insurance, such as home insurance, car insurance, health insurance, etc., provides coverage for the sum insured.

In terms of costs, the insured salary is less than or equal to the insured sum, the total amount is reimbursed by the insurance company.

In case the amount exceeds the insured sum, the insured bears the additional expenses. Ultimately, the insured sum is the compensation paid by the insurer in the event of injury/hospitalization, loss, or damage. It is based directly on the concept of compensation.

Choose the correct amount of insurance for your health insurance

It is very important to use the correct amount of insurance for your policy. You know why? Introduce you! You are happy, you made the wise decision to get health insurance on time, you are happy to have protection. Then comes a situation where you are in a medical crisis and the cost is too high to deal with.

You make a claim and then are surprised to learn that even after the insured amount has been paid by the insurer, your savings can still be paid out of pocket. Stressful, right? Yes, you were smart, but were you really smart about choosing the correct sum insured? And the answer is no. It is very important to choose the correct insured sum to avoid this type of situation and to let your insurer pay the maximum amount in the event of a claim. That way, you can rest easy and your savings are intact for the future.

Why is it important to choose the correct sum insured?

A higher sum insured is important as it increases the amount available in an emergency.

  • Helps you keep your savings intact
  • Less stress in medical emergencies

When you have a floating family plan, it is important to have a larger amount insured. Since your family shares the sum insured under your health insurance plan, a lower sum insured would not be sufficient in the event of multiple claims in the same year. If you opt for a higher sum insured, you can be sure that your family members are adequately insured.

The sum insured depends on several factors:

  • Age: If you are young, choose a higher sum insured as you have more years to live.
  • Health Problems: If you have specific health problems that require constant medical observation, surgical treatment, and hospitalization. You certainly need a larger sum insured.
  • Lifestyle: Our lifestyle speaks volumes, choose your insured sum according to your lifestyle


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