Sum insured in health insurance: Meaning and importance

A healthy body is the most undervalued luxury. It is the backbone of success, growth, and harmony. With a healthy mind, you lead a positive life. Therefore, in order to take care of your long-term well-being, you must plan in advance. Along with a balanced diet, yoga, and meditation, you must include emergency healthcare support like a good medical plan. It will protect your finances from draining away on hospital bills and medications in times of unfortunate events.

Through this blog, you will get an insight into best health insurance plans and how the sum insured plays a crucial role in eliminating sudden medical expenses.

Health Plan

A health plan is a type of insurance which covers future medical expenses, including hospitalisation, daycare procedures, accidents, etc. By paying a premium annually, you can protect your savings from fading away due to highly expensive medical facilities. It ensures you get the best treatment without worrying about the cost involved.

What is Sum Insured in Health Insurance?

The sum insured meaning is the maximum limit for which your health insurer will bear the medical expenses, covered under the policy. This is the maximum coverage you get from the plan you choose if your claim is approved.

Importance of Sum Insured

Sum assured is the major factor which determines the value of your health plan. By choosing the right amount of sum assured, you bring down the risk of bearing the medical cost on your own.

As the premium depends on the coverage you choose, people generally choose a lower coverage to avoid paying higher premiums. However, this might cost you more than you imagined, as hospitalisation of any member of the family for a few days can be a huge expense because of the rising medical cost. By choosing a lower sum assured, you will miss out on the real benefits of a mediclaim policy as all the expenses related to hospitalisation, medications, therapies, etc., will not be covered by the insurer. This will result in making a hole in your pocket because of the treatment expenses.

Therefore, a premium should be considered as an investment rather than an expense. By paying a minimum amount towards your health, you safeguard yourself and your family against heavy medical costs.

Clearing the Clouds: Factors to Consider while Choosing Sum Assured

By now, you must be wondering how to calculate the coverage you require as an individual and as a family. Below-mentioned points will help you understand the factors which are essential to consider before landing upon the coverage:

Number of Members

Health Plans like family-floater and group medical plans provide coverage to more people and hence require a higher sum assured. However, the premium paid towards such plans is lower as compared to other insurance plans as the risk gets distributed among many people. Therefore, while looking for family plans, you must choose greater coverage than seeking individual plans.

Health History and Age

If you have any medical history or chronic diseases like diabetes, asthma, hypertension, etc., then you must choose a higher coverage. This is because of the medical risk associated with such diseases.

Age also plays a crucial role in selecting a sum assured in health insurance. You might not require a higher coverage when you are young, but generally, with age, people start developing certain problems which require frequent medical treatment. For such people, it is better to choose a higher coverage.

Type of Health Plans

The sum assured of any health insurance policy will depend upon which plan you choose. If you choose a critical insurance plan, then choosing a higher sum assured is a mindful decision. This is because of the coverage it provides for life-threatening diseases. On the other hand, if you choose an individual plan, then you can consider a lower sum assured.

Wrapping Up

Health insurance is the gift you give to yourself. It is a partner of hard times. By selecting the right sum assured in health insurance, you can reduce the financial burden substantially. With an insurer like Niva Bupa, you have a variety of plans and coverage to choose from. This helps insurance buyers either choose or modify their plans according to their medical needs. The insurer also ensures a smooth claim settlement process with high-quality service.

So, go and explore the plans on Niva Bupa’s website to be the policyholder of the best health insurer.