In today's world, health threats are growing at an alarming rate due to lifestyle changes and other factors. A sudden medical crisis can cost you quite a bit of money, and can even deplete your savings. Being financially prepared in these situations is crucial. Health insurance is a handy option during such circumstances as it acts as a protective cover against medical emergencies.
Before you go about purchasing a health insurance policy , it is important to know the different types of Health Insurance available in India – so you can decide on the one that perfectly matches your needs and budget.
Rising inflation and costs have made medical facilities and bills financially challenging. A health insurance policy acts as a safety net and gives you the comfort of knowing that you won't have to worry about paying large sums of money in case of an ailment or injury.
What Are The Types Of Health Insurance?
There are different types of health insurance, and each of them serves a different purpose –
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Individual Health Insurance
As the name suggests, individual health insurance is designed exclusively for an individual. It covers all medical charges, such as surgery costs, pre and post medical expenses, etc.
You can also enrol your family members in this cover. They will have a separate coverage under the same plan with their own sum insured limit. Since you are adding additional members to the same plan, the premium might be on the higher side.
For example, Mohan bought Individual Health Care Insurance with a sum assured of Rs 5 Lakhs. He included his spouse Vidya and his son Aryan under the same policy. Hence, they are also eligible to receive a sum assured of Rs 5 Lakhs respectively under the same plan.
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Family Floater Health Insurance
A Family Floater Health Insurance plan covers everyone in your household under a single plan. This means that a single sum assured covers the entire family against any medical bills.
Since one policy is purchased for the entire family, the premium is comparatively low. As the premium is usually determined based on age, including senior people susceptible to diseases, may result in a higher premium.
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Critical Illness Insurance
In this day and age, critical illnesses are on the rise. These illnesses may necessitate prolonged treatments, and you may be well aware of how expensive they are. It is prudent to obtain this coverage if your family has a history of these illnesses, as a majority of chronic illnesses are hereditary.
A Critical Illness policy is specifically designed to cover a variety of disorders such as –
- Major organ transplant
- Cancer
- Aorta graft surgery
- Kidney failure
- Stroke
- Multiple sclerosis
- Paralysis
- First heart attack
- Coronary artery bypass surgery
- Primary pulmonary hypertension
Please note that these policies have a waiting period of 30 days, i.e., they will cover you after 30 days of policy purchase. You shall receive a lump sum payment of the sum assured when you file a claim.
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Senior Citizen Health Insurance
This plan is designed for senior citizens who are usually above the age of 60.. This policy is apt for old people who are at high risk of contracting diseases, and so the premium for this policy is relatively high.
The medical treatment that comes with old age can take a huge toll on your savings. However, this policy protects you against medical expenses, including pre and post-hospital expenses due to a medical illness, including damages sustained due to an accident.
Other benefits include -
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Maternity Health Insurance
Are you planning to start a family? A Maternity Cover can take care of expenses related to a new stage in your life, including medical treatment, delivery, pre and postnatal care, infertility expenses, etc.
A baby cover is also provided under this insurance policy wherein the expenses related to the new born baby are covered up to the first 90 days.
Please note that the Maternity Cover comes with waiting period of 9 months to 4 years.
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Group Health Insurance
Group health insurance plans are usually offered by many large organisations to their employees. They provide coverage in case of an accident, illness, critical illness, psychiatric illness, maternity, etc. And, the premiums are affordable, since a group is covered under one policy. Please note that the employees are covered only until they stay with the company.
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Top-Up Health Insurance
Top-Up Health Insurance plans help you meet healthcare expenses over and above the coverage of your current. These policies act like extensions to your existing policy.
These plans have a ‘deductible clause’. This means that you will be required to pay a predefined amount from your pocket before the health insurance company starts paying for the medical expenditures.
For example, Rajesh has a comprehensive with Rs 5 Lakhs coverage along with Top-up Health insurance with 8 Lakhs coverage. The deductible amount is Rs 50,000. He requires an immediate open-heart surgery that costs around Rs 8,00,000.
| |
With a Top up plan |
Without a Top up Plan |
| Amount payable to Rajesh |
Rs 7.5 lakhs |
Rs 5 lakhs |
| Amount to be paid by Rajesh |
Rs 50,000 |
Rs 3 lakhs |
Since Rajesh has a Top-Up Plan, he shall receive Rs 5 lakh from his existing policy and Rs 2.5 lakh from his Top-up plan, since he will need to pay Rs 50,000 as the deductible.
If Rajesh didn’t own a Top-Up Plan, he would have had to pay Rs 3 lakhs from his pocket to meet the surgery cost.
Summing Up!
In today's fast-paced world, health insurance is a necessity. It is imperative that you protect your loved ones and yourself from any unfortunate circumstances that could practically empty your bank account. Since there are a multitude of options in health insurance, it is essential to weigh each of the types before choosing the right one.
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