Last Updated on April 27, 2023 by Tabraiz
The recent panic of the pandemic has brought the world’s attention to quality healthcare and health insurance. Be it an accidental hospitalisation or any kind of illness, the health insurance providers in India offer various policies suited to every customer.
Choosing a well-fitted and beneficial health insurance policy for you and your family is quintessential. Listed below are the different types of policies to help you find a policy for yourself or your parents medical insurance.
Secure health insurance plans in India
The two major types of health insurance policies are-
- Indemnity plans
- Defined-benefit plans
Indemnity health insurance
Simply put, Indemnity plans are the traditional health insurance plans which settle hospitalisation expenses up to a specific sum insured for you. The health insurance plans under these are-
- Mediclaim Insurance: During any accidental or emergency illness, mediclaim insurance provides the hospitalisation costs. Additionally, in-patient expenses like surgery, nursing charges, doctor’s fees, anaesthesia, oxygen cylinder costs, etc., are included in this policy.
- Individual Insurance: This policy is designed to benefit only a single individual. The individual can claim the basic insured amount during hospitalisation. For example, if your health cover is Rs. 1 lakh, then only you can claim up to Rs.1 lakh in case of a medical emergency.
- Family Floater Plan: This policy helps cover the entire family under one plan. The policy can also protect your parents, children, or in-laws, and the premium will be calculated accordingly. In the family floater insurance policy, the sum assured is a lumpsum that any family member can use. These plans also benefit you from paying way less than other individual policies.
- Unit Linked Health Plans: These investment cum insurance plans are well-known and commonly recognised as ULIPs. This policy lays out dual benefits with the option of insurance along with investing in the stock market. Simply put, a certain portion is taken from your paid premiums and applied to the stock market. The performance of the market influences the returns.
- Group Mediclaim: Group Health Insurance plans are popular mostly among large-scale enterprises and companies that buy these plans for their employees. Under this, the employers pay premiums on their employees’ behalf to provide them with health insurance.
The defined-benefit plans compensate a larger sum in case of an illness. The plans under these are-
- Critical Illness Plan: This specially designed plan mainly caters to critical ailments like kidney failure, paralysis, stroke, cancer, etc. There has been a rise in lifestyle diseases which can be addressed with a good critical illness plan. It provides coverage with a pre-decided amount for the treatment and other hospital expenses.
- Personal Accident Plan: A bulk amount is offered for any accidental injury or death of the person covered under this plan. The insured amount is funded to their families in case of death or permanent disability.
- Hospitalisation cash benefit plan: Under this health insurance plan, the insured amount is credited as a daily allowance up to a specific limit. However, it is paid apart from other treatment and hospital stay expenses.
Reasons to secure health insurance early
Apart from covering the ever-rising medical expenses, the reasons you should buy insurance early are:
1. Comes with lower premiums: The main reason the insurance companies offer higher premiums when you are considerably older is that people have a higher risk of falling ill. But you’re less likely to fall sick in your twenties. Thus, you can get low health insurance premiums if you buy them early.
2. Easy to get insurance: As you are less prone to illness when you are young, the insurance companies offer you the policies without any complication. But that won’t be the case when you are older with pre-existing health issues.
3. Save More on Tax: Section 80D of the Income Tax Act 1961 benefits the insured with tax benefits on account of their health insurance premium. Thus, you can enjoy tax benefits for a more extended period if you buy a policy early.
4. Benefits from savings: The motive of insurance is to cover yourself financially against unforeseen circumstances. Investing at a younger age will benefit you as you can save for the future without risk.
5. No Waiting Period: Health insurance has a specific waiting period. When you are young, you are less likely to fall ill and can serve the waiting period easily.
You will find many insurance plans to cater to your different insurance needs. However, knowing which plan is the best requires thorough market research. Hence, it is vital to proactively compare the different insurance types in terms of the insurers’ offerings, premium, or claim settlement ratios to secure the right policy to serve your needs!