Sum Insured

Sum Insured is the maximum amount an insurance company will pay a policyholder for a covered loss during the policy period.

In health insurance, it represents the upper ceiling on hospitalization, treatment, and related expenses reimbursed in a year. In life insurance, it is the death benefit paid to the nominee. Sum insured should be chosen based on the asset insured, the family's income, or the rising cost of healthcare, with most planners recommending a minimum health cover of ₹10 lakhs to ₹25 lakhs for a family.