Sum insured

The sum insured is the ceiling on what your policy pays in a policy year. If your bills cross it, you pay the rest. Pick a sum insured that matches real treatment costs where you live, not a round number.

What it covers, and what it does not

In health insurance, the sum insured is the most the policy pays towards your hospital bills in one policy year, across one or more claims. Once you hit it, further costs that year are yours. It is not a per-claim limit by default, though some features, like a room rent limit or a co-pay, can reduce what you actually get even within the sum insured.

Choosing the right amount

The common mistake is picking a comfortable round number rather than a realistic one. A single serious hospital stay in a metro can run into several lakhs, and medical costs rise faster than ordinary inflation, so a cover that looked ample a few years ago can fall short today. As a guide, size it against the cost of a major treatment at a good hospital in your city, and lean higher rather than lower, since the gap is exactly the bill you bought cover to avoid.

Stretching it further

You do not always need a huge base policy to get a high sum insured. A no-claim bonus raises your cover for free in years you do not claim, and a top-up or super top-up policy adds a large extra layer cheaply above a threshold. See how much health cover you need and family floater vs individual.