In today’s world, a health insurance policy is a must. It acts as a financial safety net in times of need. There are several types of health insurance plans available in India, and each has its own set of features and benefits. One should carefully choose the most suitable plan for their needs.
Health insurance plans are divided into two broad categories: defined benefit plans and indemnity health plans.
Defined Benefit Plans
These are types of health insurance plans where the benefits are fixed and predetermined. The sum assured is paid to the policyholder irrespective of the incurred medical expenses. The defined benefit plans are further classified into three sub-categories:
- Critical Illness Cover
- Hospital Cash Benefit Plans
- And Personal Accident Insurance
Critical Illness Cover
These types of health insurance plans offer a lump sum benefit in case the policyholder is diagnosed with any of the specified critical illnesses. The list of critical medical conditions covered under a critical illness policy varies from insurer to insurer. Some of the common critical diseases covered by this plan are heart attack, cancer, and kidney failure. A critical illness cover is great for people who want to save up on their medical expenses in case of a medical emergency.
Hospital Cash Benefit Plans
A hospital cash benefit plan is a type of health insurance policy that offers daily cash benefits in case the policyholder is hospitalised. The benefit amount is paid for each day of hospitalisation, up to the maximum limit specified in the policy. These types of health insurance plans are ideal for people who need financial assistance with their hospitalisation costs.
Personal Accident Insurance
These types of health insurance plans offer financial protection in case the policyholder suffers loss or injury from an accident. The benefit amount can be used to cover any expenses related to the accident. This plan is best for people who have a high risk of being involved in an accident, such as motorcyclists or professional drivers.
Indemnity Health Plans
An indemnity health plan is a type of insurance policy that pays the agreed amount to the policyholder for medical expenses incurred. The policyholder is free to choose any doctor or hospital for treatment, and the insurer will reimburse the costs of care. The types of indemnity health plans are:
- Mediclaim Insurance
- Family Floater Coverage
- Individual Coverage
- Senior Citizen Coverage
- Unit Linked Health Plans
Mediclaim Insurance
This is the most basic form of indemnity health insurance. It covers the policyholder for hospitalisation expenses and other medical treatment as per the terms and conditions of the policy. Not all health insurance policies offer this type of coverage.
Family Floater Coverage
The family floater plan is another type of indemnity health insurance that covers a group of people, such as the entire family, under a single policy. The limit for coverage is fixed, and the expenses incurred by any one member of the family are deducted from this limit. Once the limit is reached, the policyholder must pay for any additional medical expenses.
Individual Coverage
This type of indemnity health insurance covers one person only. Most individual policies cover hospitalisation, surgical expenses and other medical costs. You can use the policy to get cashless treatment at any of the hospitals in the insurance provider’s wide network, or you could claim reimbursement for expenses incurred.
Senior Citizen Coverage
This health insurance policy is designed to offer financial protection to senior citizens against expensive medical treatment costs. Many of these plans have no upper age limit, and some even offer lifelong renewability.
Unit Linked Health Plans
Unit linked health plans are an effective way to invest in both medical and investment benefits. These types of health insurance plans offer the benefits of a health insurance policy while also providing an investment component that can be used to grow your money.
Conclusion
Numerous health insurance companies in India offer different types of individual coverage plans. The best way to choose the right policy is to compare the different options. Cover 360 offers comprehensive coverage options and a wide network of hospitals, making it one of India’s most popular health insurance providers.