Types of Health Insurance

Cracking the Maze of Type of Health Insurance

Different Types of Health Insurance Plans and the Suitable Beneficiaries

In the realm of healthcare, the medical treatment costs are increasing rapidly. As a result, awareness about the importance of health insurance is now higher than ever. Health Insurance, often known as medical insurance, covers medical expenses that arise due to illness, injury and/or accident. These medical costs include the cost of hospitalisation, both pre- and post-hospitalisation, medications, implants, specialist fees, and surgery. By opting for health insurance with comprehensive coverage, you can ease the financial burden of medical expenses.

Health Insurance Types with Their Descriptions

An Detailed Overview of the Different Types of Health Insurance Plan

Individual Health Insurance

Individual health insurance, also known as personal medical insurance, is a type of health policy that offers medical coverage to people on an individual sum insured basis. It is one of the most common types of health insurance plans in India and covers hospitalisation expenses incurred once you are admitted. By paying an extra premium, you can add your spouse, children, and parents as beneficiaries under the same policy.

Family Floater Health Insurance

Family floater insurance covers the entire family, and the plan members share the insured sum. The best part of family health insurance is that you do not need to manage different policies, and it is cost-effective.
 

Senior Citizen Health Insurance

Among the different types of health insurance policies, senior citizen health insurance policy is the ideal one older adults over 60. It covers medical-related treatment costs for senior citizens, such as preventive health check-ups, cashless hospitalisation, pre-existing disease coverage, and more.
 

Critical Illness Plan

Critical illness cover offers financial protection to the insured by providing coverage against life-threatening health conditions such as kidney failure, cancer, heart attack, and multiple sclerosis. Critical illness insurance plans differ in the number of conditions covered based on the insurer and are irrespective of the pre- and post-hospitalisation expenses.
 

Top-Up Plan
 

A top-up health insurance plan is a backup to your primary health insurance plan. It is ideal for individuals looking to replenish the sum insured to a specific amount above the basic plan. You may have to pay a fixed deductible; the limit is crossed, and the top-up is activated.
 

Group Medical Insurance
 

A group medical insurance policy is a health plan for people such as bank customers, employee-employers, society members, etc. Group health insurance provides comprehensive benefits during an emergency, such as cashless facilities, ambulance costs, hospitalisation expense coverage, and more.  
 

Personal Accident Cover
 

Over the years, road accidents have increased, and as a result, people have lost their lives. Treatment expenses can be an additional burden; hence, personal accident insurance coverage is vital in providing financial aid to the affected or their family. It also covers education and orphan expenses if required. Personal accident coverage has the following benefits: assistance service, temporary total disablement, accident in-patient hospitalisation with personal accident plans, and worldwide emergency. 
 

Maternity Health Insurance Plan
 

Maternity health insurance is a health policy that provides extensive coverage for all pregnancy-related medical expenses, including hospitalisation costs, delivery (normal and C-sec), pre- and post-natal care, medical tests, and newborn baby expenses. It offers financial stability and helps women prepare to raise their babies.
 

Disease-Specific
 

A disease-specific plan covers the insured under one specific disease/illness. Also known as a niche plan, this policy will either provide a pre-decided amount or the medical expenses during the treatment.
 

Mediclaim Insurance Plan
 

A mediclaim insurance plan covers treatment expenses for the policyholder when admitted to a hospital for at least a day (24 hours). They are called in-patients, and mediclaim insurance covers all costs incurred due to accidents or illnesses.
 

Hospital Cash
 

Hospital Cash Insurance or hospicash is an insurance policy that offers a pre-decided sum insured for each day of hospitalisation, i.e., more than 24 hours. It is a fixed allowance paid to the insured to cover the miscellaneous costs during the period of hospitalisation.
 

Unit Linked Insurance Plan (ULIPs)
 

Unit-Linked Insurance Plan, or ULIP, is a comprehensive insurance scheme that provides an advantageous combination of investment opportunities to meet your long-term objectives and a life coverage component to safeguard the financial well-being of your family in the event of an unprecedented situation.
 

Indemnity Health Insurance
 

Indemnity-based health insurance plans are medical insurance policies in which the policyholder is reimbursed for the hospitalisation expenses that arise during the treatment up to the maximum coverage amount specified in the policy.
 

Know the Importance of Health Insurance
 

As we know, health risks and uncertainties are unavoidable aspects of life. No one plans to fall sick but can prepare for unexpected medical costs. Buying Health Insurance is one approach to being financially prepared for unforeseen health risks.  
 

Good Health Insurance covers medical expenses such as pre-and post-hospitalisation costs, including doctor fees, medical tests, ambulance fees, coverage for specific diseases, treatment for accidents, maternity expenses, organ transplantation charges and much more.
 

By paying a nominal premium, the insured gets access to a substantial Sum Insured that can be used in case of medical emergencies.   
 

What benefits do Health Insurance policies offer?
 

Health Insurance becomes more critical when it offers comprehensive coverage and helps meet the requirements of individuals and families. Be aware of the benefits and features of the plans that are in your best interest.   
 

Here are the benefits of purchasing a Health Insurance policy:
 

1. Offers financial stability

Medical emergencies might arise suddenly and result in acute financial difficulties. To pay for treatment, one might have to sell all their assets or possessions. In such circumstances, a medical insurance plan can provide financial protection and allow one to safeguard their long-term savings.  
 

2. Protects your loved ones  

Hence, you must analyse your requirements carefully and invest in a health plan that gives you optimum benefits. For example, if you have ageing parents, they may be vulnerable to diseases and require adequate coverage in health insurance.
 

3. Gives access to the best medical treatment

People tend to compromise on medical treatments when they are financially challenged. With adequate health insurance coverage, they may choose the best doctor, hospital, and treatment options.

When you get a Health Insurance policy, the following aspects are covered.   
 

• Pre- and Post-hospitalisation costs  
• Room rent charges
• Ambulance charges  
• Consultation fees  
• Coverage for day care procedures  
• Coverage for modern treatments
• Coverage for maternity and delivery charges
• Vaccination charges for newborns
• Annual and preventive health check-ups and many more.

4. Protects savings  

Medical expenses have skyrocketed recently. Unfortunately, many people spend their life savings in case of a medical emergency.   

The importance of the type of Health Insurance in preserving your savings can be extraordinary. You can hold on to your savings and use them for your future needs, such as buying a home, spending for your child’s academics and more.
 

5. It helps manage treatment expenses for lifestyle disorders  
 

Lifestyle diseases are on the rise. Diabetes, obesity, respiratory problems and heart disease are nowadays standard in youngsters and adults. The contributing factors include sedentary lifestyles, stress, pollution, bad eating habits, gadget addiction, etc.  
 

As a result, it is more crucial than ever to protect your health with complete Health Insurance coverage. Deciding to invest in health insurance that covers diagnostic tests will help identify these illnesses early and make it easier to pay medical bills, giving you one less thing to worry about.
 

Enrolling in Wellness programs offered by various insurers helps prevent or manage chronic diseases.
 

6. Tax benefits  

Planning for the future should be manageable for your current income. Given the importance of health insurance, the government of India provides tax deductions for obtaining it. To better understand the benefits, refer to Section 80D of the Income Tax Act, 1961.

7. Helps when your existing insurance coverage is inadequate
 

Some of them offer only essential protection. Unfortunately, your insurance may be insufficient if multiple family members get hospitalised simultaneously. In that case, you can increase your Sum Insured by opting for Top-up plans, thereby bringing additional coverage and ensuring that a significant part of your medical need is financially covered.  

If you can’t afford a higher coverage plan right now, don’t panic. Start with a basic cover and build it up over time.  
 

What does the health insurance list?

Health insurance lists its inclusions, exclusions and other details. Generally, a health insurance plan includes covered expenses like hospitalization, pre and post-hospitalization, daycare treatments, consultations, diagnostic tests, medications, ambulance charges, maternity benefits, organ donor expenses, and preventive health check-ups. While you buy insurance policy offline or online, don't forget to check their exclusions and their other policy details.

Why should you get a Health Insurance policy when you’re young?  

Purchasing a Health Insurance policy when you’re young has several advantages.   

• The Premium of Health Insurance is calculated based on your present age. You can pay a low Premium if you choose Health Insurance when you are younger.  
• Most insurance policies often cover pre-existing conditions with specific waiting periods. While you are still young and healthy, the possibility of you developing illnesses might be comparatively lower, thus giving you comprehensive coverage that will benefit you if you fall sick later in life.  
• Early enrollment in a health insurance plan guarantees extensive coverage and helps you plan your finances better. You can opt for a Health Insurance plan with lifetime renewability and holistic coverage. In addition, you can enjoy greater security during employment and even after retirement.
   

Taking a personal insurance policy for your health will help offer financial security against medical expenses, like hospitalisation, ambulance expenses, surgeries, medications, and other healthcare services. 

It is not about how many health insurance company in India have plans; it is about how well you are choosing your health insurance plan that suits you, analyzing all the factors needed to be considered. As per the number of network hospitals, Star Health is the number 1 health insurance company in India.

10 Things to Consider While Choosing the Right Type of Health Insurance Plan

There are many factors to consider while choosing a health insurance plan. Here are the things to consider while choosing a type of health insurance. 

1. Coverage 

You must consider your health insurance coverage because it directly impacts how much financial protection you would have during medical emergencies or illnesses. 

2. Age

You must consider your age while choosing a health plan, as age impacts health insurance premiums and policy options. 

3. Current Health Condition

Current health conditions are to be considered when choosing a health insurance plan, as they directly impact your need for coverage and the terms of the policy.

4. Sum Insured

The sum insured must be considered when picking the right plan for yourself because it directly impacts your financial safety against unexpected healthcare costs.

5. Medical History of Family Members

You should consider the medical history of your family members, as it helps determine an individual's potential risk for certain health conditions.

6. Waiting Period

You should check the waiting periods before deciding on the health insurance plan because they determine when you can access full coverage for different health needs, including those you might already have. 

7. Deductibles

You should see the deductibles at the time of choosing a health policy for yourself. This is due to the fact that the deductibles directly impact both the premium cost and the out-of-pocket expenses you'll incur. 

8. Exclusions

You must check the exclusions in health insurance plans before selecting the policy you want to purchase. This is because they define what the health insurance company will not pay for. 

9. Co-payments

You should see the deductibles when choosing a health policy because they impact both premium costs and potential out-of-pocket expenses.

10. Network Hospitals 

You should also use the network hospitals when choosing a health policy, because they offer a more convenient and financially beneficial experience.
 

Final Thoughts
 

There are several types of Health Insurance policies in India. You can choose among them based on your needs. It is always advisable to read the policy terms and conditions of your health plan to understand the inclusions and exclusions. 
 

Star Health Insurance offers a varied range of affordable Health Insurance plans that suit your budget and requirements. These plans cover the medical costs of the majority of health ailments and diseases.