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.

Senior Citizen Health Insurance

Many insurers in India provide health insurance plans specially designed for senior citizens. Taking into consideration the applicant's age and vulnerability to severe health issues, they need to have an adequate health insurance plan to cover the medical and treatment expenses. Ideally, senior citizen health insurance plans are for people of the age 60 years old and above.

Since the chances of these people to claim on the health insurance plan are high, the premiums paid on this plan are high as well. Also, granting the fact that old age comes with health issues, insurers exclude the criteria for medical checkups and pre-existing diseases when issuing the health policy.

Despite the high premiums, the senior citizen health insurance policyholder can avail tax benefits under it. The premiums paid towards the policy can be claimed for tax deductions under Section 80D of the Income Tax Act, 1961. Senior citizens can claim up to ₹ 50,000 as tax deduction under this section.

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. Whether you are buying Individual Health Insurance or Family Health Insurance at Finserv MARKETS, you can use the online health insurance calculator to determine the premiums charged on your chosen plan.

Personal Accident Insurance Plan

In India, we read about accidents almost every day. While our heart aches for the people suffering from it, we look for ways to protect our loved ones and ourselves if such a mishap was to dawn upon us. Therefore, insurers in India offer a health insurance plan that covers explicitly medical expenses arising from accidental incidents – known as a personal accident insurance plan.

A personal accident insurance plan can be an add-on benefit on your primary health insurance plan or a standalone policy altogether. It will cover the cost of medical treatment and hospitalisation incurred by the patient after the accident. Furthermore, the policy provides benefits in the event the patient suffers from a partial disability, total disability, and death in the accident.

Maternity Insurance Plan

Insurers in India offer standalone maternity health insurance plans for expecting mothers. Usually, it is a standalone insurance plan, but some insurers offer it as an add-on cover as well. The policy provides cover for pre- and post-natal expenses. It also covers delivery and ambulance costs for the expecting mother.

Maternity insurance also covers expenses related to newborn babies for a specific time. However, make sure to check with your insurer for the waiting period on this policy before purchasing the plan. The health insurance plans available on Finserv MARKETS provide maternity and newborn coverage within it. That way, you do not have to invest in a new policy or add-on cover when expecting a child in the future.

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).

Conclusion

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 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 Health Insurance plans on Finserv MARKETS today.

FAQs On Types of Health Insurance

  • ✔️Why is health insurance important?

    A comprehensive health insurance plan ensures that you and your loved ones are protected financially in case of sudden medical contingencies. Based on your affordability and necessity, buy a health plan that best suits your needs.

  • ✔️Tips before buying health insurance in India?

    Here are a few things that you must consider before buying a health insurance plan –

    ●     Select sufficient coverage amount.

    ●     Look for a policy with a minimal waiting period.

    ●     Buy health insurance from a provider with a high claim settlement ratio.

    ●     Buy health insurance from a provider with a wide range of network hospitals.

  • ✔️How do I buy health insurance at Finserv MARKETS?

    You can buy health insurance plans at Finserv MARKETS in a few easy steps. Just fill out the application, choose the type of health coverage you need, upload the necessary documents, pay the premium amount, and you are done. You can also buy/renew your health insurance plan using the Finserv MARKETS App.

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