The cost of healthcare in India is hitting the sky. Try paying your medical bills without a health insurance coverage plan. It’s going to cost you a bomb. Therefore, to avail the best medical treatment without making a hole in your pocket, a health insurance policy becomes no less than a necessity. But the availability of various types of health insurance plans– from individual health plans, family floater policies to senior citizen health plans, etc. can make it confusing to select the right one.
Therefore, to help you understand better, here is a quick look at the different types of health insurance plans in India and health insurance benefits:
- Individual Health Insurance
As the name suggests, an individual health insurance plan offers coverage on an individual basis. However, one can add other members, including spouses, children, parents, etc. by paying an extra premium.
Moreover, the premium is charged as per every individual’s age, medical history, and respective sum insured. In individual plans claim filed by one member, it doesn’t affect the sum insured of the other insured member. Therefore, if you are single or do not have kids, you can buy an individual health plan for yourself and your spouse and enjoy the sum insured amount on an individual basis. The premium is slightly higher as compared to a family floater plan because of the comprehensive coverage, and the sum assured that is offered.
- Family Floater Health Insurance
In a family floater plan, the coverage is offered to all the family members, including spouse, children, parents, and other dependant members at a single premium. Usually, the premium is based on the age of the eldest family member. The coverage is almost similar to an individual health plan. The only difference is that the policy will cover all the family members under a single sum assured.
If you have small kids or have family members that do not have serious health issues, then a family floater plan is a good option as the chances of exhausting your sum insured as lesser.
However, if you have elderly members or someone with some severe health conditions like cardiovascular problems, then a family floater plan might not work for you. This is because that one member would utilize the sum insured amount, and it would leave a lesser coverage amount for all the other members.
- Critical Illness Insurance
A critical illness policy covers life-threatening diseases such as cancer of specified severity, kidney failure, stroke, paralysis, etc. The cost of treatment for such conditions is quite high, and it may require multiple hospital visits over a long period. Apart from hospitalization, there are various other expenses, including doctor visits, chemotherapy, etc. The sum insured amount is paid in a lump sum that can be used to cover all the medical costs.
However, the total number of illnesses that are covered are specified at the time of policy purchase. It also offers compensation for loss of income in case of a diagnosis of any life-threatening health condition. It can be purchased as a rider along with your existing health insurance policy or as a standalone critical illness plan.
- Hospital Daily Cash Benefit Plans
The type of medical plan offers a lump sum amount for each day of your hospitalization. The sum assured is fixed at the outset and would remain fixed irrespective of the expenses incurred. So, if your plan offers Rs. 5000 per day of hospitalization, you will get the amount for each day of your hospitalization even if your daily hospital expense comes out to be Rs.1000 or Rs.1500.
The insured can utilize this amount to meet additional expenses that are not covered by their basic health insurance plan. You can buy a daily hospital cash plan as a rider or as a standalone cover.
- Senior Citizen Health Insurance Plans
These plans are designed for people above the age of 60 years. Elderly people are more vulnerable to serious illnesses, and the cost of treatment for such diseases is also expensive. Therefore, it is better to buy a senior citizen plan for your elderly parents to ensure adequate medical coverage in their post-retirement years.
The premium is usually higher because of the extensive coverage benefits.
- Group Health Insurance
Group health insurance is usually provided by an employer or a company to its employees. The coverage is offered for a limited sum insured, and the policy features are also not that extensive. However, the coverage can be extended to other family members in the same policy by paying an extra premium. But this will depend on your employer.
Moreover, the policy will get terminated as soon as you leave the organization. Therefore, it is better not to rely on your group or corporate health insurance entirely and buy a separate health insurance plan.
Now, as you have some understanding of the different types of medical insurance plans, you can easily pick one for yourself and your family. If you are not married, you can buy an individual health insurance plan or a family floater if you have kids and a senior citizen plan for your elderly parents. However, a critical illness cover is essential with the soaring treatment costs to ensure the best medical aid to your loved ones.
So be careful in choosing your insurance plans and enjoy amazing health insurance benefits while at it.