Friday, 7 October 2016

Different Types of Health Insurance Policies in India


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Like Life Insurance policy, a health insurance policy is a legal contract between insurer and insured; in which insured pays premiums and in returns, insurer agrees to pay for medical expenses for a specified limit or sum insured. Health insurance is a best option for those who are unable to bear the unexpected or unforeseen medical expenses. Most of insurance policies provide cover between Rs. 1 lakh to Rs. 5 lakh; however, you can buy medical insurance cover between Rs. 5000 to Rs. 50 lakhs or more. Nowadays, you can find a variety of health insurance products to insure your different types of health related issues like; hospitalization expenses, critical illness, cancer insurance etc. Presently in India, there are various types of health insurance plans exist and we'll discuss about them in this post.
Types of Health Insurance Plans in India

There are basically three types of health insurance polices in India -

  1. Hospitalization Policy
  2. Hospital Daily Cash Bonus Policy
  3. Critical Illness Policy

Types of Health Insurance Policies -

Hospitalization Health Insurance Policy -

A hospitalization policy covers medical expenses in case insured needs to be hospitalized. The coverage depends upon the sum insured. In this type of policy, you can find a number of products; having varying payouts and different expenditures for different members of the policy. You can find two types of plans in hospitalization health insurance policy; reimbursement plan and fixed benefit plan. These policies also provide pre-hospitalization and post-hospitalization coverage.

Hospital Daily Cash Bonus Policy -

Hospital daily cash bonus policy is designed to provide fixed sum insured for everyday of hospitalization due to illness or accident. Irrespective to daily hospitalization charges, this policy gives a daily fixed sum of money to insured for example, let’s say John has purchased an Rs. 2500/day hospital daily cash bonus health insurance policy; and his daily hospital charges are (in case he’s hospitalized) Rs. 2000/day, then regardless of daily hospital charges, John will receive Rs. 2500/day sum insured from his health insurance provider. In other case, if John’s daily hospital charges are Rs. 4000/day; then John will still receive 2500/day sum insured from his insurer side.

Critical Illness Health Insurance Policy -

Critical illness health insurance policies are designed to provide one-time fixed lump sum to insured in case of serious illness. If the insured faces serious illness throughout the policy tenure; and that is specified in his/her policy, then insured will certainly get a cash lump sum from his insurance company. These plans provide coverage for higher or serious medical conditions such as heart attack, cancer, kidney failure, stroke, organ transplants etc.
Above are the basic types of health insurance policies; but in this day and age, health insurance companies have launched variety of health insurance products; some of them are discussed below;

Travel Health Insurance Policy -

Travel health insurance policy provides reimbursement for medical expenses incurred in a hospital; when you’re on travel or vocation. Usually, this policy provides coverage if insured faces any type of medical issue while he’s traveling away from home. Travel health insurance offers many packages like; individual health travel insurance package, family health travel insurance package, student health travel insurance package, annual health travel insurance package (for those who travel often) etc. It is remarkable that travel health insurance policy may not provide coverage for the medical conditions you had before applying for travel health insurance.

Family Floater Health Insurance Policy -

Family floater health insurance policy is tailored to provide health cover to your entire family. This policy is suitable for individual who has dependents; because the single sum insured can be utilized among all insured family members. Usually, in family floater health insurance, policy holder buys a single sum insured and adds his/her entire family in that. The major benefit of family floater plan is that, in case one family member gets sick; and has reached the sum insured per head then to cover the remaining hospitalization expenses, other members’ sum insured can be utilized. Usually, family floater plans cover individual, spouse and children (up to two); but some insurers offer to provide coverage to other dependents like; parents, siblings etc.

Group Health Insurance Policy -

Group health insurance policy covers a group of people. This policy is suitable for employers; because as per law, they have to provide certain health benefits to their employees.

Personal Accidental Insurance Policy -

This type of policy covers an individual against unexpected accidents; which may cause severe injury or death. Personal accidental insurance policy provides coverage against death or permanent disability due to an accident.

Tax Saving Health Insurance Policy -

These policies are designed to provide tax benefits to an individual. Policy holder gets health cover along with tax benefits. This policy is designed to save tax under sec 80D of the Indian income tax act 1961.

Senior Citizen Health Insurance Policy -

This policy is tailored to give health coverage to senior citizens (between 60-80 years age). Insurance companies give reasonable discounts and offers to senior citizens. After a medical check up, insured gets health coverage for future medical expenses and after 18-24 months insured gets medical coverage for pre-medical conditions. The policy covers pre and post-hospitalization expenses, ambulance charges, prescription drugs, hospitalization expenses incurred for the treatment of injury/illness.

Cancer Care Health Insurance Policy -

Cancer is a curable disease if detected in early stage. But the cost of cancer treatment is very high and most of us are not financially prepared to fight against cancer. Therefore, insurance companies have introduced a comprehensive cancer care plan that provides financial support to you and your loved ones against cancer. These cancer care policies are available at very reasonable rates (approximately 400/month). Usually, cancer care plan gives a fixed lump sum to insured for cancer diagnosis and treatment.

Dengue Care Health Insurance Policy -

After seeing significant cases of dengue in India, insurers have launched a new kind of health care policy called dengue care health insurance. This policy provides coverage for the treatment of dengue.
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