Sum Insured in Health Insurance: Meaning & Importance

People who are new to the world of insurance may not understand the colorful health insurance slang. They may get confused while buying the policy and end up making a wrong decision. For case, lots of first- time policy buyers don't know the meaning of the term ‘ sum ensured ’. still, know everything about sum ensured and its significance, If you're one of them. 


What's Sum Insured in Health Insurance? 

When a claim is filed, the insurance company assess the content available under the policy and pays the claim quantum over to the sum ensuredlimit.However, also the fresh quantum is paid by the ensured, If the claim quantum is further than the sum ensured. The insurance companies don't pay for medical charges beyond the sum ensured limit. 
For illustration, suppose you have a health insurance policy with a sum ensured of Rs 10 lakh. During the policy time, you raised the first claim for Rs 7 lakh. Since the claim quantum is lower than Rs 10 lakh, the insurer will pay the entire claim quantum. A couple of months latterly, you file another claim for Rs 4 lakh. In this case, the insurer will pay only Rs 3 lakh to you as your sum ensured limit will be exhausted. Hence, you'll have to pay the remaining quantum of Rs 1 lakh on your own.

significance of Choosing the Right Sum Insured in Health Insurance 

Then are some of the reasons why choosing the right sum ensured for your health insurance policy is important 

insure Sufficient Coverage – By choosing the right sum ensured, you insure sufficient medical content foryourself.However, you'll have to pay the fresh quantum during a medical exigency from your own fund, If you conclude for a lower sum ensured. But if you conclude for a advanced sum ensured than needed, also you'll unnecessarily pay precious decorations. 
cover Your Savings – A health insurance policy with the right sum ensured helps you to keep your savings complete. When you face a medical exigency, your savings will remain untouched as your sum ensured will be sufficient to cover your medical charges. 
Lead a Stress-free Life – If you have a health policy with sufficient content, you would n’t have to worry about arranging plutocrat in case of a medical exigency. Hence, you would not have any fiscal burden and would be suitable to lead a stress-free life. 
Effects to Keep in Mind While Choosing the Right Sum Insured 
Take a look at the factors that you must keep in mind while choosing the right sum ensured for your health insurance policy 
Age – You must choose the sum ensured of your health policy grounded on your age. The advanced is your age, the advanced should be the sum ensured. This is because the chances of getting sick and developing a health condition increase as the age increases. still, a advanced sum ensured will attract a advanced decoration. 
Current Health Condition – Your current health condition should also be considered while choosing your policy suminsured.However, also you must conclude for a advanced sum ensured, If you suffer from anypre-existing conditions like diabetes. This is important because you'll be needed to make regular passages to the croaker
and hence, your medical charges will be more. 
Plan Type – The type of health plan you choose to buy should also be determined while deciding the sum ensured. In case you're buying an individual plan to cover yourself, also a lower sum ensured will do. But if you're concluding for a family floater health plan, also you may need a advanced sum ensured as the content should be enough for the whole family. 
life – The life you lead should also be considered while determining your suminsured.However, also you're at a lesser threat of developing conditions like rotundity, hypertension, If you lead a fast- paced stressful life. In that case, concluding for a advanced sum ensured is recommended. 
City of Residence – Your megacity of hearthstone should also be considered while choosing your suminsured.However, you must conclude for a advanced sum ensured as healthcare installations are precious in similar metropolises, If you live in a metropolitan megacity. But if you live in a lower megacity, you can choose a health insurance plan with a lower sum ensured. 
When Can You Increase the Sum Insured of Your Health Insurance Policy? 
You can increase the sum ensured of your health insurance policy in the following circumstances 

At the Time of Policy Renewal – When your health policy is due for renewal, you can choose to increase your sum ensured. Depending on the increase in your sum ensured, your decoration quantum will also increase. 
Through Accretive perk – The sum ensured of your policy can also be increased through the accretive perk. This perk will be granted to you after every claim-free time but without any hike in the decoration quantum. 
In a Nutshell 
Sum ensured is one of the most important factors of health insurance. It helps you to conclude for sufficient medical content that eventually safeguards your lifelong savings. still, the advanced is the sum ensured, the advanced will be your decoration quantum. Hence, you must keep the below- mentioned factors in mind while determining the right sum ensured for your policy.
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