The sum insured refers to the maximum coverage amount that the insurance company will be liable to pay the insured person in case of an unforeseen medical emergency or planned medical treatment.

The sum insured is based on the principle of indemnity, where the insurer (the insurance company) will cover the medical expenses one incurs up to the sum insured under the health insurance plan. The claim amount that exceeds the sum insured will have to be borne by the insured person.

The health insurance coverage you need depends on your medical needs, age and health risks, the city you live in, and various other factors.

Consider the below points to make an informed decision:

• Medical Inflation: Medical treatments usually get expensive with time. Based on your health conditions and the treatment you may need, choose an adequate sum insured. A minimum of ₹5 lakh per individual is a good starting range for health cover.
• Age: With age, the risk of diseases increases. It's good to have more and more cover with age.
• Senior Citizens Coverage: The elderly may need medical attention and long-term treatment based on their health condition. Opt for a policy that fits your requirements.
• Metro Cities: If you live in a metro city, you will end up spending more on medical bills. Choosing a higher sum insured will keep your family financially safe.

The subscription plan has two cost components - one is the non-discounted variable cost of the health insurance cover (in partnership with Care Health Insurance Ltd) and the other is a small fixed-cost for the additional benefits you get through Phable.

The health insurance cost is variable. When you subscribe to this plan, for the health insurance cover part of the plan your application is checked by a team of members called underwriters - they check your details (including declared medical history) and on a case-to-case basis, may include increasing your premium basis the risk involved in providing you an insurance cover. Basically, if a person’s medical health is fragile, then the insurance company has to undertake higher risk to provide him/her insurance cover since there is a higher probability that the person will need hospitalisation for which the insurance company will have to pay.

Below are some of the factors that decide your insurance premium:

• Age Factor: The risks of illnesses go up with age, so the premiums increase with age. However, there are certain age brackets within which premiums remain same (e.g. age 18-34 is one bracket for which premium remains same).
• Pre-existing Conditions:Premium costs are high if one has any pre-existing medical condition, such as hypertension, asthma, and diabetes when buying a health cover.
• Body Mass Index: A high BMI, beyond the normal range, indicates that a person may have higher health risks; thus, premiums may be higher.
• Lifestyle: Some risky lifestyle habits, including tobacco consumption, drinking, and smoking can lead to a higher premium since these habits negatively impact health.