Different Types of Medical Insurance Policies

There is nothing more painful than losing your loved ones and it is worst when it happens just because you could not afford their treatment. Dukh k Samay Mei Sirf Apne hi Kaam Ate Hai, Right? You all have not just heard it but must have experienced it several times in life.

A Health Insurance Policy in India is the best saviour more than any other thing considering the rise in the cost of healthcare facilities. There are different types of insurance policies available to meet your requirements. Let us discuss different types of health insurance available in India.

There are majorly 7 types of Health Insurance Policies in India:

1. Individual Health Insurance

2. Family Floater Health Insurance

3. Group Health Insurance

4. Senior Citizens Health Insurance

5. Maternity Health Insurance

6. Critical Illness Health Insurance

7. Top Up Health Insurance

Let’s have a detailed look at them: 

1. Individual Health Insurance

An Individual Health Insurance is a policy which you may buy to cover you, your spouse, children and parents. This type of insurance policy covers your medical expenses for injury & illnesses related hospitalization, surgery costs, room rent, daycare procedures and more.

Every member covered under the Individual Health Insurance plan will have an Individual Sum Insured. For example, if you take an Individual health policy of 3 lakhs sum insured covering your spouse, 2 kids and yourself, then each person covered will have an individual sum insured of Rs.3 lakhs. Though it makes the premium comparatively higher.

Individuals like you who fall in the age bracket of 18 years to 70 years can choose to buy this plan. The best part of buying an Individual Policy is that it offers individual Sum Insured limit for each covered member.

2. Family Floater Health Insurance

If you want an affordable health insurance policy for all the members of your family then Family Floater Health Insurance should be your choice.

Under a Family Floater Health Insurance, single Sum Insured floats for all the members covered under the policy. A Family Floater Health Insurance Plan is beneficial because the premium is comparatively lower than the Individual Health Insurance policy. This policy can cover yourself, your spouse, children and parents.

You should not consider adding members of your family who are above 60 years of age. They are more prone to illness and hence it will impact the premium.

If you or the eldest member of your family is below 60 years of age, then you should buy a family floater policy.

3. Group Health Insurance

A Group Health Insurance policy is designed for a group of employees working together. So if you own a start-up or a corporate house, you should buy such plans for your employees. It is a kind of benefit offered to the employees. As an employer, you can buy the cover to boost the rate of employee retention.

Group Health Insurance Plan comes with a low cost premium. Some insurance companies allow to refill the sum insured, that too, unlimited times, if it is exhausted. A Group Health Insurance Plan covers you for hospitalization due to accident, illness, critical illness, psychiatric illness, and maternity.

Buying a Group Health Insurance policy not only offers coverage to your employees but also enhance the goodwill of your company. A very crucial point here is that the employees are covered only till the time they work with your company.

4. Senior Citizens Health Insurance

The health insurance policy which is dedicatedly designed for old people above the age of 60 years is called Senior Citizen Health Insurance Plan. If your parents or grandparents are above 60, then this cover is a good choice for you.

A Senior Citizen Policy will offer coverage for cost of medicines, hospitalization arising out of accident or illness, pre and post hospitalization and treatment. Along with these, some other benefits like Domiciliary Hospitalization and Psychiatric benefits are also covered.

Some insurers may ask for a complete body check-up before they sell a Senior Citizen Health Insurance Policy. The maximum entry age limit has been pushed to 70 years of age with lifetime renewability. And, as we know, the senior citizens are more prone to illnesses, these plans are more expensive than other health insurance policies.

5. Maternity Health Insurance

A Maternity cover can be bought as a rider along with the basic health insurance plan. All the expenses incurred in the prenatal stage, delivery and post-natal stage are covered. 

Newly married couples or families who are planning a baby in the coming years should buy this policy. It covers for child-delivery (including medically necessary terminations), infertility expenses and coverage for the newborn baby up to its first 90 days. The Maternity Cover has a minimum waiting period of 2 years.

6. Critical Illness Insurance

The occurrence of the lifestyle-related diseases are on the rise. Keeping this in mind, the insurance companies have offered the Critical Illness Policy. 

Dedicatedly designed for middle-class families, this health plan covers diseases like:

• Cancer
  
• Stroke
  
• Kidney Failure
  
• Paralysis
  
• Coronary Artery Bypass Surgery
  
• First heart attack
  
• Pulmonary Arterial Hypertension
  
• Multiple Sclerosis
  
• Aorta Graft Surgery
  

Getting treatment for these diseases is an expensive affair. Under the Critical Illness Plan as soon as you are diagnosed with the disease, it will pay you a predefined amount irrespective of the actual cost of treatment incurred.

Nothing can be a smart move than buying a Critical Illness Policy as it prevents any impact on your savings. The policy has lifetime renewability. If you take the Critical Illness Policy, then you should survive for 30 days after diagnosis of the illness.

It will be wise to buy this policy if you have had a family history of some diseases. Other than the lump sum amount, a Critical Illness Policy reimburses you the cost of care and hospitalization expenses. You can also avail the benefit of the complementary health check-ups.

But you should remember that once a claim is filed, then the Sum Insured is released in lump sum. After the release of the Sum Insured, the policy terminates.

7. Top-Up Health Insurance

You can buy a top-up policy if you seek coverage for higher amounts. But such plans come with a “Deductible Clause”. So, in case of a claim the payment will be made over and above a defined limit mentioned in the policy. 

Like if you have taken a cover for 15 lakhs and it has a deductible of Rs.3 lakhs, then you will have to bear claim up to Rs.3 lakhs. The amount over and above this, will be paid by the insurer. 

So, if you seek a wider cover over and above your basic health insurance policy, then you can buy this plan.

You must have read and heard too much about buying health insurance as early as possible in life. Buying a health plan at an early age has its benefits as you get rid of the waiting period at an early stage of your life when the chances of attracting diseases are less, you earn a good amount of Cumulative Bonus, and you can increase the sum insured over the years. 

But you should also know the other important aspects of having a health insurance policy as:

• It gives you peace of mind.
  
• You get better health facilities because the cost will be covered by the insurance company.
  
• If health insurance comes as a Group Insurance from your employer then you can improve your savings.
  
• Some health insurance companies offer complementary annual health check-ups.
  
• It acts as your saving for the time of distress. You will be paying a premium but the amount of financial help you receive is way more.
  
• Tax Benefit: Buying a health insurance policy will offer you a tax benefit under Section 80D of the Income Tax.
  

When there are many health insurance companies in the market, choosing one health insurance plan according to your needs can be challenging. But here is a quick checklist to consider before you finalize your insurance product.

• Sum Insured: Be sure of the Sum Insured chosen. Think about whether it will be sufficient for you or your family members. Set the right Sum Insured limit for your dependent parents if they are included in the policy.
  
• Medical History of the Family Members: Check for the medical history of the included beneficiaries, the sum insured they would require, any specific add-on that they might require. A medical history might also push up the premium of the policy. 
  
• Waiting Period: Most of the insurance plans come with a waiting period for pre existing diseases and certain other medical conditions. Choose the plan with the minimum waiting period.
  
• Check for the maximum age-renewal: Since age of the insured members plays a vital part in the health cover, check for the maximum age for which the renewal option, i.e. coverage is available. 
  
• Claim Settlement: Buy health insurance policy from the companies that have a high claim settlement ratio and a fast claim settlement process. This is a reflection of their trust and hassle free claim process. 
  
• Network Hospitals: A wider range of network hospitals make sure you get the best possible treatment without loading you with financial burden. Choose the insurance company that has the widest network of the hospital on their list.