Key idea
Enough that a serious hospitalisation does not force you to top up from savings. The right number depends on your city and your family, not on a magic figure.
There is no single correct sum insured, but there is a way to think about it. The cover should be large enough to absorb a major treatment (a heart procedure, a cancer course, a long ICU stay) at the hospitals you would actually use.
A rough starting frame
| Where you live | A common starting range |
|---|---|
| Metro city (higher hospital costs) | ₹10 lakh or more |
| Tier-2 city | ₹5 to 10 lakh |
| Smaller town | ₹5 lakh and up |
| Add for each dependant | Size up accordingly |
Why cities change the answer
A procedure that costs ₹4 lakh in a smaller town can cost ₹9 lakh in a metro. Because you may need a metro hospital in an emergency regardless of where you live, many people size their cover to the more expensive scenario, then extend it cheaply with a top-up (covered soon).
Under-insuring is the common mistake: a ₹3 lakh cover feels adequate until a ₹9 lakh bill arrives. It is usually cheaper to hold a larger base plus a top-up than to discover the gap at the hospital.
This frames the decision. The right sum insured for your family is yours to choose, ideally against real hospital costs near you.
Finished reading?
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