What are the Types of Health Insurance Plans in India?

In today’s age, the exponential rise in the cost of healthcare services is taking a toll on everyone. Hence, buying health insurance has now become a mandate as it takes away some of the financial burdens. You will come across a lot of insurance companies that offer varied health insurance plans, but to choose the one that suits your needs can be challenging. To choose the right type of health insurance, you must know about the different kinds of insurance policies available.

Health insurance policies are broadly classified into two types - Indemnity Plan and Defined-Benefit plan.

Indemnity Health Insurance

Indemnity health insurance policy allows you to receive an assured sum through reimbursement (an amount agreed upon between you & the insurance company at the time of buying the policy) in case of a medical emergency. There are different types of indemnity health insurance plans, which are:

• Family Floater Plan
• Individual Floater Coverage
• Senior Citizen Coverage

1. Family Floater Plan

This type of family health insurance covers the spouse, children and parents. Under this policy, any family member has the right to claim compensation in the event of an accident or medical emergency.

2. Individual Floater Coverage

Under this plan, a single person is insured. The premium for an individual floater plan is decided based on an individual’s medical history and age.

3. Senior Citizen Coverage

As the name suggests, the plan is specially designed for people above 60 years (senior citizens). You can consider buying this plan to get coverage for your parents, who are senior citizens. 

Defined-Benefit Plan

Generally, it includes health insurance plans wherein an individual receives a stipulated lump sum amount when diagnosed with a critical illness. This type of plan comprises of three policies:

• Hospital Cash Policy
• Major Surgical Benefit
• Critical Illness 

1. Hospital Cash Policy

It is either offered as a standalone plan or included as a top-up/ rider option by paying an extra premium in a health insurance policy. Under this plan, you are eligible to get daily cash to compensate for the loss of income due to illness or accident. 

2. Major Surgical Benefit

Health issues are sudden, and the expenses associated with it could put your potential assets and savings at risk. To tackle such unfortunate situations, health insurance companies offer major surgical benefit plans that assure you protection against health conditions that require you to undergo surgery. 

Generally, surgeries such as kidney/liver transplant, bypass surgeries, cornea transplantation, open-heart surgery are covered in the major surgical benefit plan. Under this type of health insurance plan, the amount is paid in lumpsum for treatment and hospitalization.  

3. Critical Illness

As the name suggests, this type of health insurance policy offers lumpsum compensation for major illnesses such as cancer, stroke, kidney failure, bypass surgery, among others. The critical illness health insurance plan is a must-have in your insurance portfolio as it helps you to reduce the financial burden to some extent and receives a stipulated amount for both pre & post-hospitalization expenses. 

While buying a health insurance policy, make sure that you understand the features and benefits of different plans and choose the one that best suits your needs.