Different Types of Health Insurance Policies and Their Benefits

Health insurance is one of the simplest ways to save money when dealing with a health crisis. It acts as a financial shield and helps people to not stress over money during such intense moments. Since health insurance is so crucial to us, it is important that we purchase the most holistic and inclusive insurance policy. It is always better to get a policy with a higher sum assured as it will help us during testing times. Since the health insurance market is vast and products aplenty, it is important that we know the basic features from every category.

How Many Types of Health Insurance Plans Are There?

The two primary categories of insurance are:

  • Indemnity policies

  • Defined-benefit policies

Indemnity Policies 

Indemnity policies are health insurance policies that primarily cover the hospitalisation expenses and the expenses around it. However, the expenses should be within the limit of sum assured as the excess amount must be paid by the insured.

Indemnity health insurance policy also has many subdivisions; they are:

Individual Insurance Policy –

This is another form of health insurance policy that covers only one individual under the decided sum assured. It covers the hospitalisations expenses of the insured. The insured could be in the hospital for an injury or illness. The policy will cover all inpatient expenses like anaesthesia, consulting charges, oxygen cylinder etc.

Family Floater Plan –

This is a single health policy that covers the entire family. This policy will cover for one or more individual simultaneously if they both fall ill at the same time.. When you collectively pay the sum insured, it is cheaper than individual policies.

Group Mediclaim -

These plans are popular among employers; this plan gives good coverage to employees at a very good premium rate. This plan is also good at retaining employees. This plan also helps the employees to treat any illness during a financial crisis.

Definite Benefit Plans

These plans give the insured a lump sum the moment the insured is diagnosed with an illness. There are specific plans under this too. They are:

Critical Illness Plan –

This plan is made only to cater to diseases that arise due to lifestyle. These are also major diseases that require a lot of money for treatment. A middle-class family may not be able to treat these diseases easily, and for that purpose, you must have a critical illness policy. This plan covers all critical issues like cancer, heart diseases, stroke, bypass surgery, kidney failure etc.

Hospital Daily Cash -

Some health insurance policies offer an in-built feature wherein they offer fixed daily cash to the insured for daily hospital expenses.

Personal Accident Plan -

This policy, as the name suggests, covers an individual in case of an accident or death because of an accident. Here too, a lump sum amount is paid when the insured is hospitalised, and the same amount is paid to the beneficiary if the insured meets with an unfortunate demise.

It is important that we choose the perfect policy for us that meets our lifestyle and demand. There are many policies available, but to select the one that is best suited for us requires some work. So don’t make hasty decisions and apply for an appropriate health insurance policy today.
Learn more the various types of health insurance plans and their details.