The exponential rise in healthcare costs has made it compulsory for everyone to have a health insurance policy. Health insurance coverage helps you get financial protection against unexpected hospitalisation costs that may arise anytime without any prior warning.
Today, many insurance companies in India offer different types of health insurance plans. If you are a first-time health insurance buyer, you have come to the right place. In this write-up, we discuss the different types of health insurance so that you can make the right choice based on your specific needs.
Individual Health Insurance Policy
An individual health insurance policy is one of the best ways to get coverage against health emergencies for you, your spouse and your children. This type of health insurance covers all kinds of medical expenses, including surgery costs, daily room rent, daycare procedures, diagnostic tests, and more.
Every member covered under this policy will have an individual sum assured. For example, if you purchase an individual health insurance policy that covers you, your spouse and your kids, with a sum assured of Rs. 5 lakhs, then each person will have an individual sum assured of Rs. 5 lakhs. The premium for such insurance plans is comparatively higher than family floater plans.
Family Floater Health Insurance Policy
If you are looking for an affordable health insurance policy, then buying a family floater health insurance policy would be a wise decision. As the name suggests, under the family floater health insurance policy, all the family members covered can utilise the sum assured to its maximum limit.
A family floater health insurance policy has an affordable premium, and you can buy it to cover yourself, your spouse, children and non-senior citizen parents. Under this policy, the insurers decide the premium based on the age of the oldest family member. So, it is better not to include senior citizens (people over 60 years) under the family floater plan, as it will increase the premium.
Group Health Insurance
A group health insurance policy is specifically designed for corporate employees. Employers generally offer it as part of the employee benefits program, which covers all employees under a single plan.
As an employee, you must know that the health insurance offered by your employer has limited coverage. But, it usually provides coverage against critical illness, maternity, accidents, etc. Another significant feature of group health insurance is that you get the coverage only until you are employed with the company that offers the insurance.
From the employer’s point of view, offering health insurance coverage to the employees helps enhance your company’s goodwill and earn your employees’ loyalty.
Critical Illness Health Insurance Policy
Today, many people, including youngsters, are becoming vulnerable to various lifestyle-related diseases like cancer, diabetes, etc. Keeping this in mind, the insurers in India offer a special critical health insurance policy. It is specifically designed to get coverage against life-threatening diseases like cancer, stroke, paralysis, kidney failure, heart disease, bypass surgery, etc.
Getting treatment for these critical illnesses can be highly expensive, and depending on the seriousness of the condition, it can run into several lakhs. But with a critical illness health insurance policy, you can easily afford the treatment cost and get quality medical care. Under critical illness policy, the insurers immediately pay the sum assured upon diagnosis of any critical health condition covered under the plan.
Top-up Health Insurance Policy
If the sum assured of your existing policy is low, you can purchase a top-up health insurance policy; it helps you seek coverage for higher amounts. However, you must know that such plans come with a deductibles clause. For example, if you have purchased a top-up health insurance plan with a sum assured of Rs. 10 lakhs and it has a deductible of Rs. 2 lakhs, then you must bear a claim up to Rs. 2 lakhs from your pocket. Any amount over and above this, the insurer will pay for it.
Now that you know of different types of health insurance plans in India, do your due diligence, assess your specific needs and purchase the right kind of policy accordingly.