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Types of Health Insurance 

If the pandemic has taught us anything, it is that life is uncertain, and sudden medical expenses can burn a huge hole in your pocket. With the ever-increasing costs of medical treatment, opting for a sound health insurance policy can help you financially safeguard yourself and your family in tough times. Fortunately, insurance companies offer a very large variety of health insurance plans at a range of prices that can suit the needs of different demographics. Over the course of this article, we will look into the various types of health insurance policies in India.

Types of Health Insurance Plans

Purpose/Function 

Individual Health Insurance

Those looking to insure themselves or another individual

Family Health Insurance

Small families 

Critical Illness Insurance

Necessary when a critical medical condition arises 

Senior Citizen Health Insurance

Senior citizens 

Top Up Health Insurance

Useful in increasing the total sum insured

Hospital Daily Cash

To ensure you have cash at hand for dealing with hospital expenses

Personal Accident Insurance

Provides coverage and a lump-sum amount in case of an accident

Mediclaim

Covers hospitalisation expenses 

Group Health Insurance

Suitable for providing coverage to a whole group of people

Disease-Specific Insurance (M-Care, Corona Kavach, etc.)

Good choice for people who are susceptible to certain specific diseases

ULIPs

This plan combines the benefits of insurance and investing in one plan

 

11 Types of Health Insurance Plans

Investing in the right type of health insurance plan is a secure form of safeguarding yourself from the ever-increasing medical costs and can protect you from financial insecurity in times of medical emergencies. By paying nominal premiums over a course of time, when insured, you can create a cache of funds to pay for unforeseen medical expenses for yourself and your family. Health insurance plans are broadly divided into two categories: 

Now, let’s try and understand the different types of health insurance plans available in the market. 

  • Mediclaim Insurance

Mediclaim is a form of health insurance that compensates you for all expenses related to treatment for a specific medical condition. Offering benefits for a wide range of diseases, this form of insurance can cover both you and your family. Mediclaim plans also come with the additional benefit of tax rebates on the annual premium paid.

  • Individual Health Insurance

An Individual Insurance plan refers to a health insurance policy that only covers a single person, be it you or someone else. This policy will provide coverage to you/individuals for costs pertaining to hospitalisation, surgery, daycare, and so on. The major benefit of this form of insurance is that it covers the medical needs of an individual quite adequately. 

  • Family Floater Insurance

If you are looking for affordable health insurance for all the members of your family, this is the go-to plan, offering insurance for all members of the family under a single insurance sum. With the possibility of covering not only yourself, but your children, spouse, and even parents, the premium offered on family health insurance policy is relatively cheaper as compared to Individual coverage.

  • Senior Citizens Health Insurance 

Senior Citizen health insurance is designed specifically for senior citizens, i.e., those above the age of 60, and offers compensation for costs pertaining to medication, hospitalisation, and treatment. This form of insurance also offers additional benefits of psychiatric treatment and domiciliary hospitalisation.

  • Unit Linked Health Plans

Unit Linked Health Plans are an amalgamation of both health insurance and investments. This form of health insurance ensures that even if you do not make a claim during the policy term, a portion of your premium payments is saved and invested.

  • Critical Illness Plans 

Critical Illness Plans are designed to offer compensation against diseases and illnesses such as cancer, stroke, paralysis, kidney failure, heart attack, multiple sclerosis, and so on. Given that treatment for these diseases often comes at a hefty cost, this plan ensures that as soon as you are diagnosed with any of these illnesses, a predetermined amount is paid to you.

  • Personal Accident Plans

As per Personal Accident plan, in the unfortunate event of your death or disability due to an accident, your nominee will be paid a lump sum amount. This helps protect your family and loved ones against financial insecurity in the unfortunate event of you meeting with an accident.

  • Hospital Daily Cash Plan

This is an insurance policy that pays you a fixed sum for each day of hospitalisation that exceeds the 24-hour mark. Essentially, it offers you a daily allowance, to meet hospital-related expenditures. You can opt for this as a basic plan, or even choose to use this as an add-on cover.

  • Disease Specific Insurance Plans

These types of insurance plans are built to protect against certain specific types of diseases. People that are susceptible to certain diseases should consider buying these plans. For example, people who are immunocompromised and are at risk from COVID-19 can consider buying COVID-19-specific insurance. 

  • Group Health Insurance 

A group health insurance plan is a type of policy that offers health coverage to a large group of people. A company or organisation providing health insurance to all its employees or members is an example of group health insurance. Group plans are the best type of health insurance policy for organisations as they bring down the premium costs significantly. 

  • Top Up Health Insurance

A top-up health insurance is a type of add-on plan that extends the sum insured of your basic health plan. For instance, if you have a health insurance policy with a sum insured of ₹10 Lakhs, you can buy top-up health insurance of ₹10 Lakhs and thus extend your total sum insured to ₹20 Lakhs. 

Indemnity Plans

Indemnity plans refer to health insurance plans that compensate the policyholder for the entire sum of medical expenses – offering to reimburse you for the actual expenses incurred during treatment and hospitalisation. Post the compensation, any balance amount in the policy will be set aside for future claims under the tenor of the policy. These plans come with a pre-fixed deductible, which is paid by the policyholder for any hospitalisation expenses, while the remainder is paid by the insurer, till the sum insured is exhausted. 

Defined Benefit Plans

As opposed to an Indemnity plan, a Defined-benefit plan will ensure pay-outs for a prescribed sum, on an insured event. These plans are generally opted for to supplement indemnity plans.

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FAQs On Types of Health Insurance

✔️Do I need to buy my own health insurance if I’m covered under a group health plan?

 Yes, most group health insurance plans offer a limited scope of coverage. So, you should also buy your own health policy for the enhanced medical cover. 

✔️Which health insurance should I buy if I am the sole earning member of the family?

 If your spouse and children are dependent on you for financial security, you should ideally buy a family health insurance policy that will keep your loved ones covered against hefty medical expenses. 

✔️ Which health insurance policy should I buy for my parents?

If your parents are above the age of 60, you should consider buying a senior citizen’s health insurance plan for them. However, if they are below the age of 60, you should look into getting individual health insurance plans for them. 

 

✔️What is the difference between mediclaim and health insurance?

 In simple terms, a mediclaim policy offers a very limited scope of coverage and only covers hospitalisation costs. On the other hand, a health policy provides a wider range of cover and includes ambulance charges, doctors’ fees, critical illness cover, etc.

✔️Can I buy health insurance online?

Yes, you can buy a health insurance policy online at Bajaj Markets and other insurance websites.