Is It Worth Buying Health Insurance With A Higher Sum Insured?

Is It Worth Buying Health Insurance With A Higher Sum Insured?

Health insurance is your protection against high unexpected payments that you may incur after hospitalization. The insurance company will pay for the expenses made for the treatment of the policy members up to the sum insured. Now, what is a sum insured? Sum insured is the maximum amount that the insurance company agrees to pay you against your claim for treatment or hospitalization in a particular year. Any expenditure above the sum insured must be borne by you.

So, choosing the sum insured is a crucial task because you do not want to buy a cover that is of no use. It implies that for a person of 40 years, buying a policy for a sum insured of Rs.1 lakhs stands of no good use.

Let us understand it with an example here. You will spend good money to get the best number lock for the almirah where you store precious jewelry. Correct? It is because you know that losing a few things is more expensive than protecting them. The same is the case with the health insurance policy.

If you are considering a high sum insured under a health insurance policy, below are a few reasons of the same that may help you understand the importance:

10 reasons to choose the high sum insured in health insurance:

Skyrocketing price for healthcare facilities in India.

The price of healthcare facilities in India is rising exponentially. You will not always be able to match the cost of treatment. Choosing a low sum insured will not be wise just to save the premium amount. With a higher sum insured amount you will be able to afford treatments in the best hospitals!

The average cost of treating cancer is Rs.10 lakhs or more. Anyone can contract the disease so it is better to be prepared by buying a health insurance policy than cry.

Read more: Making Sure Your Healthcare Insurance Is Right for You

Get maximum benefit under the health insurance policy.

When you have a higher sum insured, you will get the maximum expenses covered. It implies that under a policy of Rs.3 lakhs you get the maximum medical bills cleared up to Rs.3 lakhs. Over and above, you will have to bear the expenses on your own. So the higher the sum insured, the higher are the benefits. 

Because these days some minor operations with a 4days of hospitalization may cost around Rs. 2 lakhs in good private hospitals.

Protect your savings.

You can choose the high sum insured under the health insurance policy to protect your savings. When you have a health insurance policy, you just have the expense of a premium which is way less than the extent of coverage you seek. It helps you keep your money in savings. 

The huge medical bills can dent your savings all in one time. If you want to think wisely and save your hard-earned money, you should buy a health insurance policy with a high sum insured. You might save that money for your children’s education or their marriage.

Higher Sum Insured means plenty of cover for your family members.

Buying a family health insurance policy with a high sum insured is to guarantee plenty of coverage for your family members. To get maximum coverage you can check and learn more about cash value life insurance and universal life at

With less sum insured, the share per family member is limited. This could worsen the situation when the Sum Insured is low and more than one member is hospitalized. 

Lifestyle-related rising diseases.

The number of lifestyle-related diseases is rising. People above the age of 30 years are getting prone to heart diseases. The cost of treatment for any heart ailment is high which is not possible for everyone to withdraw immediately. 

Hence, it is better to cushion a risk situation when you know that the treatment cost will be high.

Read more: Integrating Self-Care Into Everyday Life To Improve Your Mental Health

When you are the single earning member in the family.

If you are the single earning member in the family, you would already know how it feels to earn and spend. Give yourself some relaxation and security by buying a health insurance policy with a high sum insured. 

The premium is just one-time spending but the claim can be made more than once. The limit of claim payment will be up to the extent of the Sum Insured under the health policy.

Higher Sum insured under health policy means more saving under Income tax.

Paying a premium may not appeal to everyone especially when the policy sum insured is higher. But if you have complete family insurance with a higher sum insured and are paying higher premiums, you can take better benefit under Section 80 D of income tax. 

You can save up to Rs. 75,000 in income tax if you are paying the health insurance premium for self, spouse, and parents, considering your age is below 60 and your parents’ age is above 60 years. Ultimately, you are saving your income tax and getting medical coverage.

Know how to complete a tax return properly

Health insurance also provides coverage for OPD and daycare procedures.

A health insurance policy is an option more than for pre and post-hospitalization expenses. Other than the hospitalization expenses, it will now pay you for outdoor patients (OPD) and daycare procedures.

Hence, other than the serious ailments your minor expenses will also be covered. A higher sum insured saves you from getting out-of-pocket anytime.

Less rate of claim rejection.

Less rate of claim rejection or a wider range of claim amount absorption comes when you buy a policy of a higher sum insured at a young age, you are free from the burden of co-payment. 

At higher age along with a medical history, it gets mandatory for the policyholder to share the burden of the claim amount. This is why it is prudent you get a health insurance policy of higher sum insured at a young age.

Higher Sum Insured for health insurance because your employer cover is not sufficient.

It is not wise to depend on your employer’s health protection cover. When you leave the job, the benefits under the health insurance policy cease to end. You will be uncovered or unprotected for the time until you join another job or buy a health policy for yourself.

This will put you in trouble in case of an emergency. Better is to buy health insurance with a higher sum insured policy and get it renewed every year. This is a wealth of savings you are creating for unexpected medical expenses.

Having a health insurance policy with higher coverage will be beneficial. You can effortlessly compare different types of policies and choose the best for yourself online! Stay healthy, stay safe!