Last Updated on September 20, 2019 by Gopal Gidwani
The most vital and cost-effective way of protecting your finances is buying health insurance. You are required to be careful while buying health insurance plans. Before ensuring the right deal, have sound research about the types of health insurance plans available in India.
The exponential increase in quality of healthcare expenses has made it compulsory for individuals to cover themselves with medical insurance. Health cover sustains the unexpected financial burden arising out of hospitalisation or illness. To enjoy sufficient coverage one should be well aware of the types of health insurance policies. One can compare health plans for family or health cover for senior citizens and choose the best one suitable as per their needs and requirements.
Different Types of Health Insurance Plans in India
There are two different types of health policies.
1) Indemnity Plans and
2) Defined-benefit Plan
Indemnity Health Insurance
It is traditional health insurance that covers hospitalization expenses up to the sum insured. The inclusions of Indemnity cover are Mediclaim Insurance, Individual Coverage, Family Floater Coverage and Group Mediclaim.
1) Medical Insurance
Mediclaim compensates hospitalization expenses caused by unexpected illness or accident. Expenses such as nursing charges, surgery expenses, doctor’s fee, oxygen, anesthesia, etc., are included in Medical Insurance.
2) Individual Insurance
Individual insurance policy is meant only for an individual. Under this policy, an individual is entitled to receive the incurred amount during a hospitalization. Individual insurance can claim up to the basic sum insured. The covered members get the individual sum insured under this policy. For instance, if you own an individual health cover of Rs. 2 lakh, you both can claim up to Rs.2 lakh.
3) Family Floater Plan
A family health insurance, as the name suggests, is meant for the entire family. The complete family can be covered under a single plan with a Family Floater health insurance policy. The sum insured floats among all the family members. Any or all family member can utilise the cover, singly or jointly, up to the specified amount, in the event of hospitalization. One big advantage of this policy is that the premium that you pay with these plans is competitive as compared to the individual insurance policies.
4) Group Mediclaim
Group Health plans are gaining popularity among the medium or large-scale enterprises, which are offered by employers. With the increasing importance of health insurance, the employers cover their employees for a financial crisis and prudence. While group mediclaim plans are beneficial, it is imperative to check their coverage and an individual should, additionally, opt for an individual cover or family floater plan which provides more comprehensive coverage.
Benefits of Indemnity Based Health Plans
Indemnity-based health plans allow flexibility when it comes to the hospital and health care professional. They have tie-ups with a number of partner hospitals and medical centres. A policyholder can choose the hospital or medical centre based on the type of treatment they have to undergo without worrying about the medical expenses. The actual amount of the hospital bill along with a wide range of treatments and illnesses is covered under this plan.
Defined benefit plans usually pay a fixed amount during the occurrence of an insured event.
You can calculate the premium of your desired plan using a health insurance premium calculator conveniently online.