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Health insurance plans are a type of insurance policy that can cover medical expenses incurred for treatment of a range of illnesses. These expenses can include medication, surgeries, hospitalization due to an illness, emergencies of injuries due to unfortunate accidents, etc. However, the types of expenses that are covered by a health insurance plan can vary for different types of health insurance policies.
Read on to know more about the different types of health insurance policies available in India.
The truth is – there is a difference between mediclaim and health insurance. Each of these plans has its distinct definition though they seem to serve the same purpose. It is high time to address this misconception by digging deeper into mediclaim and health insurance differences.
Common Types of Health Insurance Plans in India
Currently, there are 7 types of health insurance plans that you can choose from. Below is the list of different types of health insurance policies and some of their key features:
Individual Health Insurance
In the individual type of health insurance plans, the person buying the insurance is the sole beneficiary of the health insurance. It ensures that the policyholder is covered in the event of a medical emergency. This type of health plan can cover a variety of medical expenses while the policy is still in effect. However, the sum insured and the health insurance premium payable may be influenced by variables such as the individual purchasing the health insurance's age, gender, smoking habits, and so on.
Family Floater Health Insurance
Family floater plan is a type of health insurance than can be used to cover medical costs for family members like your spouse, parents/in-laws and dependant children/siblings in addition to yourself. Family floater health insurance is the way to go if you want to buy health insurance for you and your family without having to pay premiums for multiple policies. Additionally, these medical insurance policies have a collective sum insured that keeps premium prices reasonable while providing adequate health cover for multiple family members.
Group Health Insurance
Among the different types of health insurance policies, group health insurance is often provided by companies to their employees. The low cost of premiums on group health insurance is the reason for purchasing it as an incentive for employees. It is not only convenient for the employer but also for the employees because insurance companies frequently offer refills on the assured sum. However, the low premiums required for such group insurance policies do have a drawback – the sum insured for these health insurance policies is quite low.
Senior Citizen Health Insurance
Among other types of health insurance policies in India, Senior Citizen Health Insurance is more expensive. It is because people in their late adulthood, which begins at the age of 60, are more vulnerable to critical illnesses and diseases. As a result, this type of health insurance covers medical expenses such as medication, pre and post-treatment care costs, and critical and terminal illnesses.
In some cases, senior citizens are required to undergo a full body examination. This aids in determining the health insurance premium rate and maturity value.
Maternity health insurance is one of the types of health insurance that is appropriate for couples or families who are planning to have a baby. If you are looking for family planning insurance options, this is a viable investment. It will assist in covering both pre and post-delivery costs, as well as the infant's expenses for a period of 90 days, including all pregnancy-related expenses. However, the waiting period for this type health insurance variant can be up to two years or longer.
Critical Illness Insurance
Critical illnesses like heart disease, stroke, lower respiratory infections, Alzheimer's disease, and other conditions are on the rise. Such diseases impose a significant financial burden on individuals. A critical illness insurance policy, which is usually provided as an add to term insurance plans provides a lump sum payout in the event the insured person is diagnosed with a critical illness as per the list provided by the insurer. However, the cover is terminated after the diagnosis and the lump sum assured amount is paid out by the insurer.
There is an additional option known super top-up health insurance, however, that is not a unique health insurance variant or type. It is a feature that may be available with any of the health insurance types mentioned above.
Pointers to Help You Choose The Right Health Insurance Plan
Now that you know the types of health insurance plans in India, here is how you pick the right health insurance policy.
The Right Policy: It is recommended that you base all insurance-related decisions on adequate and accurate information. Do extensive research before purchasing health insurance. It will not only make the decision-making process easier and more efficient, but it will also assist you in selecting the best policy for you and your family. If you are unable to properly understand the information available online, you should consider speaking with an insurance company's agent.
Ensure Adequate Cover for yourself and dependants: Medical emergencies in your family are unforeseen. Moreover, purchasing separate insurance for each family member can be costly. As a result, a family floater allows you to cover every member of your family under a single policy. The main advantage is that you can use this insurance to cover the medical expenses of any and all family members up to the sum assured. Furthermore, you can claim a tax deduction of up to Rs.25,000 annually under Section 80D of the Income Tax Act for self and dependants. However, the annual 80D tax benefit can be as high as Rs. 1 lakh for senior citizen policyholder providing health insurance cover to their dependant parents/in-laws.
Premiums and Maturity Value: The premium rates and assured sum of each policy vary. The amount of premiums you pay is determined by the amount of coverage you choose. A higher coverage health insurance plan will cost more than a lower-value health plan. You will, however, have the option of purchasing top-up plans if necessary.
Limits on plans: There are insurance limits and sub-limit in certain policies. It is thus recommended that you read all of the terms and conditions of your insurance before purchasing it.
Network Hospital List: Check the network hospital list while looking for other information about your insurance. This will help you make cashless payments in the event of a medical emergency. The above are just some of the health insurance benefits that you need to consider.
Frequently Asked Questions (FAQs)
Q. Does health insurance cover health check-ups? (H3)
Yes, health insurance like mediclaim plans usually cover your health check-ups and assist you in living a healthy life.
Q. Does health insurance cover dental treatment?
Dental care is usually not covered under mediclaim or health insurance. However, some health insurance plans may cover dental treatment expenses in the case of accidents or under OPD cover. Typically, these require payment of additional premium to purchase the applicable rider.
Q. Will I get a tax deduction benefit?
Under Section 80D, any individual or HUF can deduct medical insurance premiums paid in any given year from their total income. This deduction is also available for additional health insurance and critical illness insurance, for yourself, and also for your spouse, dependent children, or parents.
Q. How can I know the premium rates?
You can use an online health plan calculator to calculate the premium payable to purchase your chosen health insurance plan along with any applicable insurance plan riders. However, you will have to use such a calculator on multiple health insurance provider websites in order to compare different health plan options.
Q. Can I get my family covered by health insurance?
Yes, you can get all your family covered by health insurance plan. You could opt for a family floater health insurance to provide health insurance cover to all family members under a single policy or purchase separate health plans for each family member. The latter option is usually more expensive.
Sources:
https://www.livemint.com/money/personal-finance/what-are-different-types-of-health-insurance-policies-in-india-11654233086998.html
https://www.indmoney.com/articles/insurance/what-is-health-insurance-types-of-health-insurance-plans
https://www.livemint.com/insurance/news/how-to-choose-a-health-insurance-plan-for-your-family-11651021225701.html
https://www.theweek.in/news/health/2021/08/27/different-types-of-health-insurance-plans-in-india.html
https://www.outlookindia.com/website/story/business-news-do-health-insurance-policies-cover-dental-treatment-in-india/402964
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ARN No : Nov22/Bg/21A
