Different Types of Health Insurance Plans

Health insurance is a surefire way to protect yourself from rising medical costs and any future healthcare expenses. At affordable monthly premiums, the insured can amass a generous sum that will come in handy in case they or a loved one falls ill. What’s more, health insurance today is also required to cover any COVID-19 medical expenses. Here are the different types of health insurance to consider.

Individual Health Insurance

Only one person can avail of the coverage and benefits offered under an individual health insurance plan. If one wishes to get individual insurance for a family of four, they will have to buy four such policies. In an individual plan, the sum insured is to be used only for the medical costs of the policyholder. The cost of premiums is decided based on the age of which one wants to buy themselves a health insurance policy, and are lower for younger policyholders. 

Premium costs typically remain the same once the policy is purchased. To receive funding for medical costs, you need to file a claim to your insurance provider detailing the reason to avail a portion of your sum insured. If your entire sum insured is used up in a single year, no cover will be remaining. In this case, some insurance providers offer a sum insured restoration benefit, which tops up your policy the same amount you were assured.

Family Health Insurance

Among the types of health insurance, another popular option is family health insurance. Unlike individual health insurance, there is no dedicated coverage provided to a single person in a family health insurance. Instead, this type of plan covers the medical needs of not one person, but an entire family. So, let’s say you opt for a family health plan with a sum insured of ₹10 lakhs. This plan covers your spouse, you, and your children’s medical care. 

However, a limit may be placed on how many members can be covered by a family policy. It’s important to check with your policy provider beforehand if there are any limits on the number of family members that can be covered. As per the policy, this total sum insured can be used by any of the insured individuals while the policy is active. Just like an individual health insurance plan, a family health insurance plan requires that you pay a single monthly premium towards your policy. 

Usually, the cost of premiums is estimated based on the age of the eldest family member opting for health cover. To receive your policy’s funding, you are required to make a claim to the insurance provider detailing your reasons, and adequate compensation will follow. Depending on the number of claims made and the severity of the healthcare needs, it’s possible that other family members may not be left with adequate coverage. In such cases, you can opt for sum insured restoration, which brings back 100% of the sum insured.

Top-Up Health Insurance

One of the lesser-known types of health insurance is a top-up plan. This plan is guaranteed to cover any medical costs that are over and above the costs covered by your pre-existing health insurance. This plan acts like a “top-up” extension to your basic health insurance by restoring your depleted sum insured. Top-up health insurance plans come with the option to cover both an individual or a family. In short, these types of health insurance plans serve as a backup to your pre-purchased health insurance. 

Both individual and family health insurance are subjected to tax benefits, and so are top-up plans. Premiums paid towards any health insurance, including top-up plans, are tax-exempted as per Section 80D from the Income Tax Act. Such plans financially prepare you to combat rising medical costs and any unforeseen health emergencies. These plans also tend to offer a higher sum assured than a standard health insurance policy. You are required to pay a certain amount towards your health costs as a deductible (say ₹3 lakhs out of ₹20 lakhs towards medical bills), and your top-up policy will cover the rest (₹17 lakhs).


While there are many types of health insurance plans, the most common ones are individual plans, family care plans, and top-up plans. You can find all these plans offered by Bajaj Allianz, available on Finserv MARKETS. Avail swift claim settlement, tailor-made insurance plans, and extensive coverage across more than 6500 hospitals across India -including coverage for any COVID-19 claims. So, why wait? Protect your health with Bajaj Allianz Health Insurance plans on Finserv MARKETS today.

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