The importance of the sum insured in health insurance

The sum insured, which seems to be sufficient today, may not be enough to cover your medical expenses in the next few years. Before deciding on the amount to be insured, you should always consider inflation.


Just like choosing the right job or buying a new car, when buying health insurance, you need to look for the right coverage, insurance amount.

The sum insured, which seems to be sufficient today, may not be enough to cover your medical expenses in the next few years. Thus, inflation should always be considered before deciding on the amount to be insured.

“Due to rising medical inflation, estimated at 15% per year, the cost of healthcare has been steadily increasing since the last decade or so. With health care costs rising, not having a health insurance plan, regardless of a person’s age, can be risky, ”said Pallavi Roy, Executive Vice President (Product Development) IFFCO Tokio General Insurance. leaving you with huge medical bills. If not prepared, a single hospitalization can severely disrupt a well-calculated family budget, ”she said.

The sum insured should also depend on your residential city, family history of diseases, etc. “For example, for people living in class A cities, the amount of coverage should be at least ₹ 10 rupees given the high cost of living in metro cities. The premium rate will also change accordingly, “Roy said.

Young consumers looking for health insurance should always seek optimal health coverage. This will not only help them get much-needed coverage to cover the costs of their illness, but it will also reduce the burden of premiums on their total monthly expenses.

At an early age, the chances of getting sick and making a claim are small, which means that he / she is more likely to receive a no-claim bonus or cumulative bonuses, which means that their insured amount can increase from year to year. a year up to 150%.

When deciding on the amount to be insured, an informed decision should be made, as this will allow you to cover the costs in case of unforeseen medical circumstances and analyze the available premium. While the riders and superstructure will increase the cost, the surcharge will significantly lower the cost of insurance premiums.

“For seniors and parents, you need to be hands-on when deciding on the coverage level. Today, even a small, routine surgical procedure can easily cost up to ₹ 1 lakh. Bypass surgery is at a known hospital cost in excess of ₹ 2 lakh and will certainly cost more in the next five years, ”said Roy. In addition, parents, if they are retirees, will definitely need more insurance coverage and premiums will also be high for their age.

What policyholders should do

Over the years, the healthcare industry has witnessed significant advances and innovations, but there are still diseases that are difficult to diagnose and that require specialized care that can often undermine finances.

Parag Veda, Executive Vice President and Head of Consumer Services, Tata AIG General Insurance said: “The health insurance policy provides adequate financial protection and covers the cost of hospitalization, as well as the cost of annual medical examinations, vaccinations, supplies, treatment of critical illnesses and others. expenses that can affect a person’s financial planning. To avoid the stress of a medical emergency and to provide adequate coverage for family members, it is recommended that you opt for a comprehensive health insurance plan with a higher coverage. “

Pankaj Arora, MD and CEO of Raheja QBE General Insurance, said: “Generally, you need to have a reasonable level of insurance coverage as your health insurance coverage depending on the city the person lives in, age, etc. However, these types treatment, such as large organ transplantation, oncosurgery. etc. are the types of treatment that cost a lot of money when multiple and prolonged hospitalizations are required. For these situations, you need to increase your coverage with a combination of basic coverage and super-top-up coverage for additional financial protection that is available at an affordable cost. Cost. “

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