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Sum insured is an important aspect of any health insurance policy in India. It refers to the maximum amount the insurer will pay for medical expenses during the policy period. We believe that everyone must understand what sum insured means and how it affects their health insurance coverage.

What is Sum Insured in Health Insurance?

The sum insured is the maximum amount that an insurance company is liable to pay for medical expenses incurred by an insured person during the policy period. Simply put, it is the limit to which you can claim your health insurance benefits. The insured amount is fixed when purchasing the policy and is usually based on the policyholder's needs, age, and health status.

Why Sum Insured is Important in Your Health Insurance Policy

Having an adequate sum insured is crucial for any health insurance policyholder. A lower sum insured may not cover all medical expenses, leaving the policyholder to pay out of pocket. On the other hand, a higher sum insured means better protection against unexpected medical emergencies.

Factors to Consider While Choosing Sum Insured

Choosing the right sum insured for your policy can be daunting. Here are some factors to consider while deciding on the sum insured:

  1. Age and Health Status: Individuals older or with pre-existing medical conditions may require a higher sum insured as they are more prone to health issues.
  2. City of Residence: The cost of healthcare varies from city to city. Individuals living in metropolitan cities may require a higher sum insured as medical expenses are generally higher.
  3. Lifestyle Habits: Individuals with risky lifestyle habits such as smoking, alcohol consumption, or a sedentary lifestyle may require a higher sum insured.
  4. Family Size: The sum insured should be based on the number of family members covered under the policy. A higher sum insured may be required for families with more members.
  5. Future Medical Expenses: It is essential to consider future medical expenses such as planned surgeries or chronic illnesses while deciding on the sum insured.


In conclusion, sum insured is an important aspect of health insurance in India. Choosing the right sum insured is crucial based on individual needs and circumstances. At Plum, we believe in providing our customers with comprehensive and affordable health insurance plans that cater to their specific requirements.