Insurance Education: How Much Sum Insured Should You Choose?

Looking at the medical inflation coupled with the life-threatening diseases, future -proof health insurance policy is the need of the hour. Suppose, if cancer care cost Rs.10 lakh today, it may cost triple in the next ten years. So, ideally, the policy that increases the sum insured for every claim-free year or gives other health insurance benefits like automatic recharge is more apt. Neither you have under nor over insurance; both situations can cause you financial trouble. Opt for the sum insured that offers you and your family enough coverage. Know below the factors you should consider while deciding over the sum insured:


The age of the buyer is a critical determinant for deciding on the required sum insured. If you are young and healthy, you can start from a low sum insured and increase it gradually over the years. However, people who are already in their middle or old age need a higher sum insured to meet their growing healthcare expenses.

Health Conditions

Consider your current health conditions, lifestyle diseases, or pandemics while deciding on the coverage you need. If you are young and enjoying good health, you may start with a lower sum insured as your hospital visits are not frequent. But, if your health condition is not very good or your immune system is weak, you are prone to get ill or infected. So, choose the policy coverage amount that will help you to meet any medical uncertainties in the future.

Pre- Existing Diseases

If you already have any pre-existing disease like diabetes, hypertension, or thyroid,  you have to go for regular visits to doctors, need medication, therapies, etc.  In this case, you need enough sum insured that meet these on-going medical expenses. Hence, it would be wise for you to opt for a higher coverage amount.


Suppose you are residing in metropolitan cities such as Delhi or Mumbai. You are likely to face pollution, stress, a sedentary lifestyle, bad eating habits, etc. that indeed take a toll on your health. As healthcare facilities in these cities are expensive, opt for higher policy coverage. If you are in a smaller city or town with clean surroundings and low pollution levels, you have lesser health issues, so choose the sum insured accordingly.


While deciding the extent of health insurance policy coverage, you should take care of your total earning sources. Take care of other routine expenditures and financial responsibilities; you should carefully analyze your healthcare requirements as well. Opt for the sum insured that gives you and your family enough coverage but at an affordable premium.

Family Members

If you opt for family floater health insurance, opt for the sum insured covering each insured family member’s medical needs. Additionally, look for several health insurance benefits that help you to enhance your policy coverage, such as no claim bonus, automatic recharge, annual health check-up, etc.

Top Health Insurance Companies

Below are the top health insurance companies in India offer multiple health insurance policies with an adequate sum insured.

Health Insurance Company   Network Hospitals   Claim Settlement Ratio  
IFFCO Tokio 4000+   92.66%
Care Health Insurance   8250+   92.3%
HDFC Ergo 10000+   90.32%  
Max Bupa Health Insurance   4500+   83.92%  
Star Health 8800+   78. 15%  


Therefore, it is crucial to opt for the optimum coverage that caters to your healthcare needs adequately. Carefully consider these factors to make the most out of the health insurance policy.

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