The cost of medical treatment is increasing day-by-day. Health insurance is the only way to safeguard your financial stability. But before that, one should be aware that there are different types of health insurance available in the market. You have to choose the one that is perfect for you. Sufficient coverage, insured illnesses, acceptable conditions are few crucial aspects. Let’s educate ourselves about the variants of insurance to make the correct investment!
Mainly health insurance is divided into two types according to the medical expenses they cover. Here they are explained in brief as follows-
Indemnity Health Insurance Plans
The traditional health insurance plan is known as Indemnity Plan and provides coverage for hospitalization expenses. Following are the types of indemnity plans –
- Individual Health Insurance
An individual can claim the sum assured during hospitalization in an individual insurance policy. It can cover multiple people but provides the sum insured individually. For instance, you have a policy with your spouse for two lakhs, then both of you can claim two lakhs separately.
- Family Floater Insurance
A single health insurance plan that covers your entire family is known as a family floater plan. All the members of the policy get an equal part of the sum insured. The best thing is that premium is relatively cost-effective than other health insurances.
- Mediclaim
In other words, it is the classic medical insurance that insures against hefty hospitalization expenses. During hospitalization, all the treatment expenses, such as surgery cost, testing, etc., get reimbursed to the insured. The hospitalization can be due to any disease other than critical illnesses or due to accidents.
- Unit Linked Health Insurance
People with a high-risk appetite prefer a unit-linked insurance plan(ULIP). It acts as insurance as well as an investment. A portion of the premium paid is invested in the stock market, and the rest acts as coverage. The returns are dependent on the performance of the market.
- Group Health Insurance
Many big corporations offer their employees a group mediclaim. It has garnered a lot of positive attention as it shows the company’s concern for human resources. Employers seem to retain top talent with such policies. Organizations are now active in ensuring the financial safety of their personnel.
This ends the different types of indemnity plans. Now, let’s move onto the other kind of health insurance.
Definite-Benefit Plans
Unlike indemnity plans, a definite-benefit plan provides the policyholder a lump-sum amount at the time of diagnosis of mentioned illness. There are three subtypes of definite-benefit plans-
- Critical Illness Insurance
Life-threatening diseases are surging rapidly irrespective of a person’s age. Treatment of acute diseases costs a bomb and deprives one of their financial support. Critical illness insurance offers insurance against critical ailments such as heart attack, cancer, etc. The insured gets a fixed lump-sum amount after the diagnosis without the need for hospitalization.
- Personal Accident Insurance
A policyholder gets coverage against accidental death or injuries. The family of the policyholder receives the lump-sum amount in the event of death. The amount is provided even in case of permanent disability, whether it is partial or complete. A person can utilize the amount for finding employment as well.
- Hospital Daily Cash Benefit
This type of definite-benefit plan provides a lump sum amount for daily hospitalization and treatment expenses. When buying the policy, the sum assured is fixed and can not be changed afterward irrespective of the actual expenditure incurred. One can use the money for expenses other than hospitalization.
Final Words
The health insurance market has different plans according to specific needs. It is beneficial to be aware of the choices for making a wise financial decision. So, research thoroughly and assess your requirements before buying a health insurance plan.
