Types Of Health Insurance

Why Health Insurance is Essential?

Health insurance is a crucial aspect of financial planning, especially in the present times when healthcare costs are rising rapidly. With a plethora of health insurance policies available in the market, it can be overwhelming to choose the right one.

Understanding the different types of health insurance plans can help you make an informed decision. In this article, we will discuss the various types of health insurance plans available in India and their features, so you can choose the best one that suits your needs.

Individual Health Insurance

This provides medical coverage on an individual basis, whereby incurred hospitalisation expenses can be reimbursed up to the sum insured. For instance, if the policy has a sum insured amount of Rs. 10 lakhs, the policyholder can claim up to Rs. 10 lakhs. This policy is designed to cover a single person and offers an individual sum insured amount for each beneficiary. It provides coverage for expenses incurred during hospitalisation due to injury, illness, surgeries, daycare treatment, room rent, and other related medical expenses. The policy is available for individuals in the age group of 18 to 65 years, and it is crucial to carefully review the policy's terms and conditions to select the right plan that meets the individual's healthcare needs and budget.

Family Floater Plan

It is a type of health insurance policy that covers the entire family under a single plan. The beneficiaries of the policy share the sum insured. The premium is comparatively lower than if each family member were to purchase an individual health insurance policy. If a covered member of the family requires hospitalisation or medical treatment, the policy will cover the expenses up to the sum insured. The remaining amount can be used for future medical emergencies or planned hospitalisations. This type of policy offers coverage for hospitalisation, surgeries, treatment, daycare, and other medical expenses.

Senior Citizen Health Insurance

This policy provides coverage for individuals who are above 65 years of age. If you wish to buy a health insurance plan for your elderly parents or other senior citizens, this plan is the most suitable option. The premium for this type of plan is slightly higher than the other two health insurance plans discussed earlier. The policy offers coverage for pre and post-hospitalisation expenses, medical treatment, psychiatric treatment, domiciliary expenses, and other medical expenses incurred due to illness or accident. Since seniors are more prone to health issues, the premium for this plan may be higher than that for individual or family floater health insurance plans.

Critical Illness Insurance

It offers financial protection in case you are diagnosed with a critical illness. This type of health insurance policy provides coverage against major illnesses such as kidney failure, heart attacks, stroke, paralysis, cancer, and other critical conditions. In the event of a claim, the insurer pays a one-time lump-sum payment equivalent to the sum insured. This policy has a lifetime renewability feature, and some plans even offer complimentary annual health checkups. However, the policy terminates after the one-time lump-sum payment is made, and the policyholder must survive for at least 30 days after being diagnosed with a critical illness.

Group Health Insurance

It is intended to provide coverage to a group of individuals. The most common type of group plan is the Group Medical Cover (GMC), which is usually offered by employers or companies to their employees. The GMC policy may be for an individual employee or may include their family members in the same policy with an extra premium charge. The basic coverage is generally provided free of cost for the employee. The policy offers medical coverage for hospitalisation due to an injury or illness. It may even cover maternity, daycare treatment, and Out-patient Department (OPD) expenses. In addition, the policy may offer a top-up of the sum insured amount and value-added services like annual health check-ups, online doctor consultations, diagnostic tests, and more. Moreover, there may be zero waiting period for the policy’s benefits to take effect.

Top-up Health Insurance

If you want additional coverage over and above your basic health insurance plan, this plan can be an ideal option. It comes into play once you have exhausted the maximum claim amount of your basic health insurance policy. The Top-up Health Insurance Plan offers the choice of a higher sum insured amount but usually requires a fixed deductible amount to be paid. If you need even more coverage, you can opt for the Super Top-up Health Insurance Plan which provides an even higher sum insured amount.

Personal Accident Insurance

If you are involved in an accident, the medical expenses can be financially devastating. However, with this plan, you can protect yourself against events such as partial or total disability, and death due to an accident. The policy covers accidental death and permanent/partial disability caused by an accident. In the case of permanent or partial disability, the policy may offer weekly compensation, while in the case of death or permanent disability, it provides lump-sum payments.

Maternity Health Insurance

This is an add-on option that can be purchased along with the basic health insurance plan. This add-on plan is specifically designed to cover expenses incurred during the stages of prenatal, delivery, and postnatal care. If you are planning to have a child, this plan can help you manage the expenses related to maternity. Some plans may cover the newborn baby for a specific period, and there may be a waiting period before the coverage begins.

Mediclaim Insurance

This Plan mainly covers hospitalisation expenses due to accidents or illnesses. If you need insurance coverage for only in-patient medical expenses, then this plan is suitable for you.

Features of a Mediclaim Insurance Plan include covering in-patient medical expenses such as doctor fees, surgery, nursing charges, oxygen, and anaesthesia. It can be purchased as a Group Mediclaim, Individual Medical Insurance, or Overseas Medical Insurance.

Conclusion

In conclusion, understanding the various types of health insurance plans available can help individuals make informed decisions when choosing a plan that best suits their needs. Each plan has its features and benefits, and it is important to carefully consider these before making a decision.

If you want to secure your family's financial future in the event of an unforeseen medical emergency, health insurance is a must-have.

Aditya Birla Health Insurance (ABHI), understands the importance of health insurance and offers a range of services to help you and your loved ones stay protected.

Whether you're looking for comprehensive coverage, flexible payment options, or excellent customer service, we have got you covered. Visit our website to explore more about our services.

1. https://www.adityabirlacapital.com/healthinsurance/activ-assure-diamond
2. https://www.adityabirlacapital.com/healthinsurance/super-health-topup
3. https://www.adityabirlacapital.com/healthinsurance/active-health-enhanced-insurance
4. https://www.adityabirlacapital.com/healthinsurance/activ-fit