Health Insurance is an effective tool to tackle medical expenses at needful times. As per the recent Economic Survey 2022-23, retail Health Insurance penetration in India is just about 3.2%. Considering the fact that India is the second largest country in the world with a population of over 140 crores, this is just a meager figure.
One of the main reasons for this low penetration rate is the lack of awareness. Still, many features of Health Insurance like its types, what it covers, what are the exclusions, etc., are obscure to many people. To demystify Health Insurance and to avail the right coverage as per the needs, it is inevitable to know its types as there are various types of Health Insurance plans available in the market.
Indemnity based Health Insurance plans
These are some of the most common types of Health Insurance plans that people are aware of. An indemnity-based medical insurance plan offers financial compensation for the actual medical expenses incurred by the insured person. This type of plan provides compensation both in terms of reimbursement and cashless hospitalisation.
An important thing to remember is that many plans under this category come with deductibles and co-pay. In both features, customers need to pay a certain proportion of the incurred expenses while the insurer settles the rest of the admissible claim amount. Both Individual Health Insurance and Floater Health Insurance come under this category.
Fixed-benefit Health Insurance plans
Fixed-benefit Health Insurance plans provide coverage in the form of a lump sum for any predefined illness or disease. Irrespective of the incurred medical expenses, these policies provide a fixed amount to the policyholder. Generally, these types of policies provide cover for predetermined illnesses such as Cancer, Chronic Kidney Disease, Brain Tumour, etc.
As the treatment expenses for such critical illnesses can be costly and time-consuming, a fixed benefit Health Insurance plan’s lump sum settlement will be beneficial to tackle such heavy medical bills and acts as an income substitute. Moreover, these types of policies can be purchased in addition to the base medical insurance policy.
Top-up Health Insurance
The cost of healthcare has become so volatile nowadays. With the current medical inflation, where medical expenses are exorbitant, sometimes base Health Insurance alone may not be sufficient to provide complete coverage. At such times, a Top-up Health Insurance plan comes in handy by enhancing the Sum Insured of the base policy at an affordable premium. It acts as a supplement to the existing policy by enlarging the scope of coverage at a few extra bucks.
Individual Health Insurance Policy
An Individual Health Insurance plan can be purchased to provide coverage to one individual. It offers a wide range of protection from hospitalisation to day care procedures cover, from ICU to emergency ambulance cover, etc. Generally, for people who are unmarried and starting their careers, Individual Health Insurance can be the best fit. The premium will usually be low in such policies as an optimal Sum Insured could suffice the medical needs of one person. Additionally, many specialty policies like the ones covering Cancer, Critical Illnesses, etc., will come under this category.
Family Floater Health Insurance Policy
As against Individual Health Insurance, Family Floater Health Insurance provides coverage for more than one family member including self, spouse, and dependent children. Some Family Health Insurance plans even cover parents and parents-in-law. In this category of policies, the Sum Insured is shared among the family members included in the policy. This naturally becomes the best choice for people who are looking to cover their family members at an affordable premium. Instead of buying individual plans for each family member by paying out separate premiums, Family Floater Health Insurance offers comprehensive coverage at an affordable premium.
Disease-specific Health Insurance
Generally, Health Insurance plans cover hospitalisation expenses incurred due to illnesses, diseases or accidents. However, there are certain policies that specifically provide coverage to select diseases or illnesses such as Cancer, Diabetes, Cardiac diseases, etc. Most of these policies provide lump sum cover if the policyholder is diagnosed with mentioned health issues, while others provide indemnity cover for the expenses arising out of such complications. In our current times where lifestyle diseases are on the rise and their associated treatment costs are expensive, it is wise to get coverage against them with a suitable Health Insurance plan.
The coverage of Health Insurance policies differs based on their types. Choosing the right policy by analyzing medical needs is crucial. With the best medical insurance policy one can be rest assured that their health and finances are well secured. Star Health and Allied Insurance Co Ltd., offers a wide range of Health Insurance policies that address the unique needs of people.
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