Health insurance plans are deemed to be an ideal means to shield one’s financial future during a medical emergency and resulting treatment. Such a policy equips the insured’s family members to attend to the insured’s needs and avail them of the best treatment without worrying about the cost. Currently, there are multiple health plans available in the market that individuals can choose to secure their future. However, the key is to find the most suited types of health insurance and learn about their features in detail to make an informed choice.
This article will walk us through the different types of health insurance plans and their key features.
Types of Health Plans
These are some of the most popular types of health insurance plans we see today –
Individual Health Insurance
These plans extend coverage to a single individual. Under individual health insurance, the insured is entitled to receive the hospitalization expense incurred due to surgery, illness, daycare treatment, etc. Typically, those between the ages of 18 and 65 can avail of this insurance. The individuals can claim up to the predefined sum insured.
Family Floater Health Insurance Plan
This insurance covers the entire family under one single plan. The sum insured under this plan is equally shared by the beneficiary. Notably, the premium under this plan is relatively lower than individual health insurance plans. The plan covers hospitalization charges, treatment, surgeries, daycare treatment charges, etc.
Senior Citizen Health Insurance
This insurance extends a cover for individuals who are 65 or above. Notably, the premium for senior citizen health plans is relatively higher than regular insurance or health plans. This is because insurance companies deem senior citizens to be riskier as they frequently face medical issues than younger individuals. The insurance plan extends cover for both pre and post-hospitalization expenses that were incurred during illness, accident, or medical treatment.
Critical Illness Insurance
Critical illness insurance was designed to offer financial protection to individuals in case of unforeseen medical emergencies or when they are diagnosed with a critical illness. Typically, critical illnesses such as heart attacks, stroke, cancer, kidney failure, etc., are covered under the policy plan. When a claim is raised against the policy, the insurance company pays the insured a one-time lump-sum payout if the disease is covered under the plan. Typically, critical illness cover comes with a lifetime renewability flexibility. However, most policies come with at least 30 days waiting period after the diagnosis but the same depends on the insurance company. Usually, the plan terminates after the lump sum payout or the sum insured, and some plans may offer complementary health checkups to the insured.
Group Health Insurance
This particular insurance plan has been designed to cover the needs of a group of individuals. Typically, group medical cover is one of the most common examples of this insurance and it is offered mostly by employers or companies to their employees.
Such insurance offers coverage for the company employees and often their dependents. It extends coverage for hospitalization costs triggered due to illness and injury. The plan may also cover maternity costs, daycare treatment charges, and outpatient department charges.
The basic cover is generally free for company employees and the plan comes with a zero waiting period, making the policy a viable option for individuals. Such a policy may also offer the flexibility to top-up the sum insured and could provide the policyholders with value-added services, including annual health checkups and diagnostic tests.
Top-up Health Plan
This insurance plan is deemed ideal for those who are looking for coverage that will help replenish the sum insured in the insurance up to a given amount. In other words, it offers the option to go above and beyond the sum insured extended by the basic plan. The insurance policy typically gets activated when they utilize the maximum claim. However, note that most insurance plans require individuals to pay a fixed deductible. The individuals can also opt for super top-up health insurance for a higher amount of sum insured.
Personal Accident Plan
The cost of seeking medical treatment is rising rapidly, which means finding oneself in any medical emergency can potentially cause havoc to one’s savings and financial standing. To help individuals build a financial safety net against such a situation, an insurance like a personal accident plan was designed by the insurers. Such a plan covers accidental death and partial or total disability caused due to an accident. In the event of temporary disability, the insurance plan may extend the monthly payout, whereas, in case of death or permanent disability, the insurer may offer lump-sum payouts.
Maternity Health Insurance
Individuals can typically purchase a maternity health plan as a rider or add-on to their basic health insurance. This particular add-on has been designed to cover the expenses that are incurred during the insured’s prenatal, delivery of the baby, and postnatal phase and helps account for major maternity-related expenses. Notably, some insurance companies may cover maternity after a given waiting period and even provide cover for the newborn for a predefined period. Those who are planning to expand their family may consider getting this insurance to ensure smooth and financially viable maternity expenses.
Mediclaim Insurance
This health plan covers the expenses incurred during hospitalization due to accidents or illnesses. The insurance plan is designed to cover in-patient medical charges, including doctor fees, nursing charges, surgery expenses, anesthesia, and oxygen. Notably, mediclaim insurance is generally made available under different categories, such as Group Mediclaim, overseas medical insurance, and individual medical insurance. Individuals can pick based on their suitability and safeguard themselves financially during unforeseen situations where they end up hospitalized.
Hospital daily cash
This health insurance plan offers a fixed cash benefit to the insured daily during the course of hospitalization due to injury and illness. The said cash benefit is paid to the insured regardless of the actual expenses they incurred during their stay in the hospital. Having such a health policy can help individuals offset a significant part of their non-medical expenses such as food, lodging, and transportation to the hospital with much ease.
Regardless of which health insurance policy an individual picks, it is advised to check the scope of the cover, its exclusions, and limitations to understand its merit. In addition, it is recommended to read the policy documents properly before signing them to ensure the health policy and its clauses match their needs.
