The basic sum insured is the payout that covers your medical expenses. While the objective of getting a health insurance is met (which is to to provide financial assistance) via a reimbursement or cashless hospitalization, you should be really careful how you use your health insurance policy’s basic sum insured.
If the cost of a treatment sought exceeds the basic sum insured, you will have to pay out of your own pockets. But that’s not where it ends. Using up all of the sum insured leaves you without any cover for medical emergencies or treatment in the future. Moreover, if your health insurance policy covers your entire family there won’t be enough to go around. This is why conserving sum insured is quintessential.
This video tells you why it’s important to conserve the sum insured. And this post explains 3 ways to conserve your sum insured.