What is SI in Health Insurance​?

“Understanding a crucial insurance term leading to a stress-free life”

If you are new to the field of insurance, then you might not be aware of the terms written in the insurance policy. One of these terms is SI. If you know all the terms of the insurance, then it becomes easy for you to make an informed decision for yourself. Here, you will get to know everything about the term SI along with its importance. 

So, what is SI in health insurance? 

SI stands for sum insured. A sum insured is a maximum and fixed amount that an insurance company pays for medical expenses during a policy year. It works as the upper limit of insurers’ liability. If the hospitalisation or medication bills exceed the sum insured, then the policyholder themselves has to pay the entire additional amount from their pocket only. In simple words, an insurance company won’t pay the medical expenses that are beyond the SI limits. 

Why should you choose the right sum insured in health insurance? 

• To ensure sufficient coverage.

It is crucial to choose the right sum insured so you can get enough financial help at the time of a medical emergency. On the other hand, if you choose a lower sum insured, then you have to pay the additional amount at the time of a medical emergency, which leads to a financial and physical burden. However, at the same time, you can’t just choose a high sum insured amount because then you need to pay a high premium fee on a monthly basis. 

• Keep your savings protected.

If you are able to choose the right sum insured, then it is a better financial decision that leads to financial stability, keeping your savings intact when you face a medical emergency. Make sure the sum insured is enough to pay the medical bills, so your savings will remain untouched, bringing financial stability and peace of mind to your life. 

Some key highlights of the sum insured are:  

• Know the coverage limit 

If the sum insured value is just 2 lac rupees, then the insurer will cover all the hospital bills of up to this amount only. 

• Annual reset 

Generally, SI resets every year, which means it resets typically after every 12 months. 

• Impact on premium 

If there is a higher SI, then it usually results in a higher premium payment that you have to pay regularly. 

• Financial ceiling 

Financial ceiling works as an upper limit for all claims filed within a single policy year. 

How to decide the right sum insured? 

• Age is one of the crucial factors. Since with age, the chances of falling sick increase, it is great to opt for higher coverage as you age. 
• Consider your current health status along with pre-existing diseases that require medical attention. 
• Individual health insurance requires lower SI compared to family health insurance. So, choose a plan wisely.