The health insurance policy covers medical expenses arising from medical procedures, hospitalisation costs and expenses resulting from sickness, injuries or accidents. In the absence of health coverage, unexpected medical emergencies can cause severe financial strain on the savings accumulated over time. Medical expenses have risen after the coronavirus pandemic. Therefore, it has become essential to be covered under health insurance.
Types of health insurance policy in India:
1. Individual Health Insurance Plans:
This type of health plan covers individuals only. These policies offer a wide range of coverage, including hospitalisation expenses, pre and post-hospitalisation expenses, day-care treatments and ambulance charges. The premium for individual policies depends on various factors such as age, gender, health condition and sum insured.
2. Family Floater Health Insurance Plans:
Family floater health insurance plans cover the entire family’s medical expenses under a single policy. These policies are cost-effective and offer a higher sum insured than individual policies. The premium for family floater policies is calculated based on the age of the oldest member, the number of members covered and the sum insured.
3. Senior Citizen Health Insurance Plans:
Senior citizen health insurance plans are designed for individuals over the age of 60. The premium for senior citizen policies is generally higher than others due to the increased risk of health complications in older age.
4. Critical Illness Insurance Plans:
Critical illness insurance plans cover the expenses related to critical illnesses such as chronic lung and liver disease, coma, kidney failure, heart attack, stroke, cancer, etc. These policies offer a lump sum payment on the diagnosis of a critical illness, which can be used for medical treatment, recovery and rehabilitation.
5. Group Health Insurance Plans:
Group health insurance plans cover people who work under the same organisation. These policies offer a wide range of coverage, including hospitalisation expenses, pre- and post-hospitalisation expenses, day-care treatments, and ambulance charges. The employer or organisation pays the premium. The premium for group policies is generally lower than individual policies due to the larger pool of insured individuals. Additionally, these policies also offer to cover the parents at discounted rates.
Pro tips for choosing the right health insurance policy in India:
1. Coverage:
The first tip is to assess the healthcare needs carefully, as it should be sufficient to cover the medical expenses in case of hospitalisation or other medical treatments. An individual should have coverage of at least 7 to 10 lakhs; for a family plan, 8 to 15 lakhs on a floater basis is ideal.
2. Claim settlement process:
The second and most important tip is to check the claim settlement process of an insurance company. It should be smooth and hassle-free; the claim settlement process is crucial during emergencies.
3. Network hospitals:
The third tip is to check the list of network hospitals covered under the cashless scheme and ensure that there are good and reputed hospitals in your area.
4. Premiums:
The fourth tip is to compare the premium rates of different health insurance providers and select one that offers the best value for money and fits your budget.
5. Pre-existing conditions:
The fifth tip is to check whether the plan offers to cover pre-existing medical conditions. You should always choose a plan with a shorter waiting period.
Final Words:
Choosing the right type of health insurance policy is crucial for protection from unforeseen medical expenses. In India, various types of policies are available, including individual health insurance, family floater health insurance, senior citizen health insurance, critical illness insurance and group health insurance. Therefore, going through the fine print of the policy document and understanding the features, benefits, and limitations are necessary to make an informed decision.
You can visit the portal of an online insurance aggregator like Policybazaar. It allows users to compare the various policies available in the market. By selecting the right policy, you can ensure comprehensive coverage and financial protection against medical expenses.