How to Choose the Right Sum Insured in Health Insurance Policy?

Buy Health Insurance Online

Exclusive

Wellness Benefits

24*7 Claims

Support

Tax Savings

u/s 80D

Zero Paperwork Online Process

Pin Code

+91 Enter Mobile Number

Try agian later

I agree to the Terms & Conditions

Port My Policy

Download Policy

(Incl 18% GST)

Best Ways to Select the Right Sum Insured for Your Health Insurance Plan

You have always been careful about selecting only what is best for you. Taking up the right job, following the right diet plan or buying a car that suits your needs. But is it the same when it comes to health insurance? We feel that we have a health insurance, so we are sorted. But choosing the right Sum Insured is as important as choosing health insurance itself.

As having a lesser sum insured than required is as bad as not having one because in that case, you are also paying a premium for it and you also don’t save as much for health, thinking that you have this cover.

So, even if we think we can afford the 20 lac in times of such need, is it really worth exhausting our lifetime savings?

Now, what is the solution you say. Because in times of such emergencies, our savings is what has our back. But what if we say that taking a health insurance policy with adequate Sum Insured can SAVE YOUR SAVINGS? Let us explain this to you with an example.

Mr. Agnihotri, who is 30 years old, earns 50,000 per month and saves 10,000 every month. By the age of 40, he saves around 17 lacs. But on the day when things come crashing down, Mr Agnihotri is diagnosed with cancer Apart from the unimaginable mental and physical stress, Mr. Agnihotri also has to arrange for the treatment and medication costs.

Based on the health insurance he has, there are 3 things that can happen

He doesn’t have a Health Insurance Policy: In this case, the entire expense has to be borne from Mr. Agnihotri’s savings. And if the savings aren’t at par with then expenses, then alternate arrangements like loan or help from family and friends have to be arranged, also leaving him without a security for the next 10 years.
He has a health insurance policy but with an inadequate Sum Insured: In this case, Mr. Agnihotri has to bear a majority of the expense from his savings, as his health insurance can only cover the amount of Sum Insured he has. So, even with a health insurance policy, Mr. Agnihotri is vulnerable when he actually needs to claim for it.
He has a health insurance policy with an adequate Sum Insured: In this case, majority of the expenses will be taken care by the health insurer, and even if Mr. Agnihotri requires to pay a small part of the claim (or co-payment, as some insurers have this condition), his savings will not be exhausted as much as in the other 2 scenarios. And this at least reduces some mental stress during the troubled time for the family.

So, we see that a health insurance policy with the right Sum Insured is an investment that can protect your Savings over a lifetime.

So, what all does your Sum Insured depend on?

Your age: The earlier you start the higher should be your Sum Insured as the number of years left would require a greater safety net.

Your Life stage:: Based on the life stage you are in, for instance, if you are going to get married or start a family etc, your Sum Insured should factor in the healthcare expenses associated with it.

Health Conditions: If you have a history of medical condition in your family, your Sum Insured should factor in the possibility of an unforeseen health condition in the future

Dependents in the family: If you are planning to take a family floater policy with your family members, the Sum insured should take into account the needs of each member and the future healthcare expenses for them.

Lifestyle and personal habits: The kind of job, eating habits, stress levels and other personal habits shows the way for an individual’s future healthcare needs. While choosing a Sum Insured these should be thought through too.

To sum up, we should keep in mind 2 things

It’s high time that Health insurance is not just seen as a tax saving instrument, but we actually understand the implications of taking or not taking it. Or better put, taking it with adequate cover for a lifetime.
We take health insurance as early as we can!

After all health is wealth!

Latest News

Currently there are no news to show.

More articles related to Health Insurance

Deductible in Health Insurance

Sum Insured in Health Insurance

Daily Hospital Cash Benefit

Types of Health Insurance

PED in Health Insurance

What is Copay in Health Insurance

Cancer Insurance Cover

TPA in Health Insurance

Difference between Mediclaim Policy and Health Insurance

Difference between Term Insurance and Health Insurance

Difference between Life Insurance and Health Insurance

What is Health Insurance

Best Health Insurance Policy in India

Daycare Treatment and Procedures in Health Insurance

Room Rent Capping in Health Insurance

Health Insurance for Diabetes Patients

Health Insurance covering Cataract Surgery

Health Insurance with Free Annual Checkup

Domiciliary Hospitalization in Health Insurance

Government Health Insurance Schemes

Sub-Limit in Health Insurance Policy

Cooling-off Period in Health Insurance

Loading in Health Insurance

Pre and Post Hospitalization Expenses in Health Insurance

GMC and GPA Policies in Health Insurance

Indemnity Health Insurance

Health Insurance for Disabled Persons

Difference Between Waiting Period and Survival Period

Types of Health Insurance Claims

Health Tips & Guides

Nutrition Tips & Guides

Human Wellbeing

Guides about different Diseases

Health Insurance Tips

Health Insurance for Smokers

Comprehensive Health Insurance

Buy Health Insurance on EMI

What is Nominee In Health Insurance

Grace Period in Health Insurance

Health Insurance for Parents of NRIs

Difference between Moratorium and Full Medical Underwriting

Exclusions in Health Insurance

Non - Medical Expenses in Health Insurance

Road Ambulance Cover in Health Insurance

Consumable Cover in Health Insurance

Air Ambulance Cover in Health Insurance

What Is Reimbursement Claim ?

Health Insurance Tax Benefits for Senior Citizens

Why Separate Health Insurance for your Parents?

Health Insurance After Retirement

Health Insurance for Pre-Retirees

Health Insurance for Freelancers and Self-Employed

Health Insurance for Government Employees

Why Health Insurance is Important for Mothers?

Difference Between Inpatient and Outpatient Hospitalisation

Restoration Benefit in Health Insurance

Cumulative Bonus in Health Insurance

Terminal vs Critical Illness

Health Insurance Myths

How to Choose the Right Sum Insured

Mental Health Insurance

Infertility Treatment Cover

Bariatric Surgery Cover

What is Organ Transplant Cover

AYUSH Benefit in Health Insurance

Compare Health Insurance

Maternity Health Insurance

Zone Based Health Insurance

Copay vs Coinsurance vs Deductible

Health Insurance Add-Ons

Health Insurance Benefits

Dental Health Insurance

Increase in Health Premium on Renewal

Fixed and Indemnity Health Insurance

Maternity Benefit without Waiting Period

Difference between Copay Coinsurance and Deductible in Health Insurance

Waiting Period in Health Insurance

Why Health Insurance Premium Increase on Renewal

Download Health Insurance Policy Wordings

Click here for Policy wordings | Digit Health Care plus policy - Benefit illustration

Disclaimer #1: *Customer can choose options at the time of availing insurance. Premium amount may vary accordingly. Insured is required to disclose any pre-existing condition or on going treatment before policy issuance in the proposal form.

Disclaimer #2: This information is added only for informative purposes and collected from different sources across the Internet. Digit Insurance is not promoting or recommending anything here. Please verify the information before making any decisions.

Get 10+ Exclusive Features only on Digit App

Install

Get 10+ Exclusive Features only on Digit App

Latest News

Currently there are no news to show.

Renew & Download Policy Document, Check Challan, Credit Score, PUC & more

43K+ Reviews

4.7

Rated App

43K+ Reviews

7K+ Reviews

4.4

Rated App

7K+ Reviews

Download the App

CIN: U66010PN2016PLC167410, IRDAI Reg. No. 158.

Go Digit General Insurance Limited (formerly known as Oben General Insurance Ltd.) - Registered Office Address - 1 to 6 floors, Ananta One (AR One), Pride Hotel Lane, Narveer Tanaji Wadi, City Survey No.1579, Shivaji Nagar, Pune-411005, Maharashtra | Corporate Office Address - Atlantis, 95, 4th B Cross Road, Koramangala Industrial Layout, 5th Block, Bengaluru-560095, Karnataka | Trade logo of Go Digit General Insurance Ltd. displayed above belongs to Go Digit lnfoworks Services Private Limited and is provided and used by Go Digit General Insurance Ltd. under license.