New Delhi, Aug. 22 -- As healthcare costs rise, having health insurance does not necessarily mean a policyholder is fully protected from a large medical bill. A fixed sum insured can get exhausted during an expensive hospitalisation or multiple treatments in the same policy year. This is where health insurance policies offering an 'unlimited sum insured' come in.

But 'unlimited' does not mean every medical expense will be paid by the insurer. The benefit primarily removes the overall monetary ceiling on eligible hospitalisation expenses, while other policy conditions, exclusions and restrictions continue to apply.

An unlimited sum insured means there is no fixed monetary limit on eligible hospitalisation expenses that a policyholder can...