Know the different forms of health insurance available in the market

Know the different forms of Health Insurance available in the market

Health insurance is about providing security as well as services including cashless payments for medical care needed in times of illness and disability. The purchase of health insurance reduces the risks and unpredictability inherent in a consumer’s health care expenses. The consumer pays the premium for health insurance policy and is subsequently reimbursed for his or her medical expenses as per policy terms and conditions.

Health has always been of paramount importance for everyone. Everyone needs to be physically and mentally fit.
Health systems that need to serve all must have a critical component of health financing and in this area, health insurance plays a very crucial role. Health insurance can help in financing the treatment costs of those who fall ill. Health insurance also becomes important because of the unpredictable nature of spending on healthcare.

Broadly speaking, there are 3 categories of Health Insurance products Hospitalization/indemnity Benefits
These products pay actual medical expenses incurred due to hospitalization. These policies are issued for sum insured of RS 50000 to RS 100 lacs. These policies can be issued for 1 to 3 years but it is always advisable to take the policy for one year so that one may revise the sum insured at the time of renewal. Besides hospitalization expenses, expenses for before and after hospitalization for specified periods are also covered under the policy. Various add on features like free health check-up, cumulative bonus, hospital daily cash, higher benefits for ICU admissions, restoration of the sum insured after the payment of a claim, are also available.
Such policies may be available on individual sum insured basis, or on a family floater basis where the sum insured is shared across the family members.

Fixed benefit-also called Hospital cash
These products pay a fixed sum per day for the period of hospitalization. The insured gets a fixed sum irrespective of the amount spent for the named procedure. For the process of claims, only proof of hospitalization and coverage of ailment are required.

Critical Illness benefit
This policy provides a fixed lump sum amount to the insured in case of diagnosis of a specified illness or on undergoing a specified procedure. Once this lump sum is paid, the plan ceases to remain in force. This policy is available as a standalone policy or as an add on cover to few health insurance policies or as an add on cover few life insurance policies. Health insurance policies usually do not include expenses incurred while outside India.

Travel insurance or overseas insurance
Health insurance policies usually do not include expenses incurred while outside India. For outside India, another product Travel insurance is to be purchased. Such policies are meant for accident and sickness benefits. Most products are available in the form of a package of covers the package contains the covers like Accidental death/disability, medical expenses due to sickness/accident, loss of passport, loss of checked in baggage, personal/third party liability for property/personal damages, delay in the arrival of checked baggage, trip cancellation, hijack etc.

Health insurance policy covers medical expenses in the event of hospitalization because of Illness or accidental bodily injury sustained or contracted during the policy period.

To know more about the different kind of Insurance policies visit

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