Sum Insured in Health Insurance

 

                                   

Most of us are aware that Health Insurance is a necessity whatever be the age. Good Health is a tough call today with the increasing stress, pollution and diet plans. Markets are flooded with various Health policies and wellness programs to help in keeping fit and stress free. Yet the unforeseen, unpredictable happens.

A good Health Insurance Program is recommended to control difficult health situations. While buying a Health Insurance policy it is important to choose the right Sum Insured.

With Cashless hospitalization and Network hospital facilities a person can simply get well at a Network Hospital with his Health card and get treated without the emotional burden of hospital bills and discharges.

WHAT IS THE SUM INSURED?

·         Sum insured is the maximum value for a particular year payable by the health insurance policy in case he/she gets hospitalized.

·         Sum Insured is the reimbursement of the expenses that are incurred during a medical emergency, any amount exceeding the sum insured shall be borne by the insured.

SUM INSURED IN HEALTH INSURANCE

The concept of sum insured works on the principle of indemnity, which means that the insurance company reimburses for damage or loss. Hence choosing the right Sum Insured is beneficial in the event of a claim.

For example, with a Health Insurance policy of Rs.2 lakhs, an Insured was treated and discharged. The Insured was again admitted due to some complication and the entire Sum Insured got exhausted. The additional expenditure in excess of the policy Sum insured has to be borne by the Insured. Proper planning and choosing the right option is therefore of paramount importance.

HEALTH INSURANCE PLAN

Adequacy of sum insured for your health insurance plan is a must for one to be financially relaxed in times of emotional stress. The right Sum Insured can financially protect you and your family against any medical emergencies.

For a family consisting of self, spouse, two children and parents, higher sum insured is required because of the number of members. With a higher sum insured, you are assured that your family has reliable financial support during times of need. However higher Sum Insured attracts higher premiums. To balance this scenario a Floater policy with single Sum Insured for all family members is advisable.

Where the family consists of young and old, a single Sum Insured for the entire family may be floated. With all permutations and since the old are more prone to hospitalization and medical emergencies the entire Sum Insured can be utilized by a single member in the event of hospitalization. Floater policies are economical and prudent for a family health plan.

 

Family Package covers offer a discount on the premiums. Different covers are available and add-ons can be customized to suit the needs of the Insured.

 

SUM INSURED VERSUS PREMIUMS:

Premium for higher Sum Insured is high and the sum insured has a direct bearing on your health insurance premiums. With higher sums insured, the maximum expenses can be claimed. Therefore, higher will be the health insurance premiums. A basic plan with reasonable Sum insured must be opted along with Top up covers for additional Sum Insured.

There are a lot of Top-up plans to supplement additional Sum Insured.

THE RIGHT SUM INSURED?

Choosing the right sum insured depends on the following factors:

Age: In the younger age group opting for a higher sum insured is advisable because one gets a high sum assured at affordable rates. Higher the age more the premium.

Health condition: Some health conditions like diabetes, heart problem, blood pressure issues, kidney issues, etc., need higher Sum Insured as there may be need for frequent claim.

Lifestyle habits: Sedentary living, unhealthy food habits, etc., has increased health risks. Investing in a higher sum insured ensures adequate protection in case of any unexpected eventuality.

CONCLUSION

Opting for a correct /higher Sum Insured and a proper Health plan is important given the increasing health costs. Higher Sum Insured preserves your savings, gives peace of mind as sufficient cover is available.

We at Zen Insurance assist in choosing the right policy that fits your needs and budget.

Plan your Health Insurance Plan wisely and contact us for assistance.

 

Disclaimer:   

Zen Insurance is an IRDAI registered broker which facilitates quick & accurate insurance broking services. We deal with only regulator approved products of insurers. We do not underwrite the products