Shaurya Burman

Knowing what the different types of health insurance are is necessary for making informed decisions about coverage. It is always important to thoroughly review the terms and conditions of your current insurance policy to ascertain the extent of expenses covered and those that are not. Some policies may offer only basic protection, while you might prefer extensive coverage. To tackle such issues, this blog aims to delve into the concept of health insurance plans and their various types, empowering you to make well-informed choices according to your specific requirements. A Brief on Health Insurance To put it simply, health insurance covers an individual's medical and hospitalisation expenses. It provides coverage for costs incurred due to illness or injury through direct reimbursement or payments to healthcare providers. The essence of health insurance lies in the contractual agreement between a company and a consumer, wherein the company commits to covering some or all of the insured person's healthcare expenses, contingent on the regular monthly premium payment. What are the Different Types of Health Insurance? Insurance ensures that individuals and families can access quality healthcare without bearing the entire financial burden. There are primarily two types of health insurance plans in India: Indemnity Insurance and Defined-Benefit Plans. Let us delve deeper into these categories and explore the various insurance policies available in each. Indemnity Insurance Following are some of the most common types under this type of health insurance. Medical Insurance / Mediclaim Insurance ·       It covers hospitalisation expenses incurred due to illness or accidental injury. ·       In-patient expenses such as nursing charges, surgery expenses, doctor's fees, medication, and other relevant medical costs are covered. ·       It is usually available as individual medical insurance, group mediclaim, and overseas medical insurance. Individual Insurance This health insurance policy is meant for individual coverage. When the insured person is hospitalised, they can claim reimbursement for the incurred medical expenses up to the basic sum insured. If multiple family members have individual health insurance policies, each member is entitled to claim up to their individual sum insured. Family Floater Plan This type of health insurance is shared among all family members. This type of plan is cost-effective, as the premium is relatively lower. Unit Linked Health Plans (ULIPs) A portion of the paid premiums is invested in the stock market, and the insured person receives insurance coverage as well. The returns on these plans depend on the market's performance. Group Mediclaim It is generally provided by employers to their employees. These policies are gaining popularity among medium and large-scale enterprises as they help retain talent within the organisation by offering financial security to employees during health crises. Defined-Benefit Plans Following are some of the most common types of health insurance plans under this type of plan. Critical Illness Plan The Critical Illness Plan is specifically designed to offer coverage for certain specified illnesses like cancer, and coronary artery bypass surgery, among others. If the insured is diagnosed with any of these critical illnesses covered by the policy, they will receive a lump sum amount, regardless of pre- or post-hospitalisation expenses. Personal Accident Plan The Personal Accident Plan provides coverage during circumstances like accidental injuries resulting in disability or death. In case of an accident, the policyholder or their nominee will receive a lump sum benefit to help manage the financial impact of the accident. Hospitalisation Cash Benefit Plan With the Hospitalisation Cash Benefit plan, the insured receives a fixed daily cash benefit during their hospital stay. This cash benefit can be actively used to cover various expenses that may arise during the hospitalisation period. Indeed, insurance policies can differ significantly between providers, and additional features or variations may be present. It is crucial to exercise prudence and thoroughly review the terms and conditions of any insurance plan before making a purchase. In summary, having a health insurance plan is a crucial part of financial planning as it guarantees that you and your family can receive necessary and high-quality healthcare without draining your savings. There are various types of health insurance plans designed to meet different needs, enabling you to select the one that aligns perfectly with your specific requirements. By exploring the available options and evaluating your healthcare needs, you can make well-informed choices to protect your health and financial stability.