Different Kinds of Health Insurance

With increasing medical costs and elevating rates of accidents and lifestyle diseases, everyone needs to be covered by a health insurance plan in order to escape high medical expenses. However, there are a number of Health Insurance Policies and people need to evaluate all the options before signing up for a specific plan, so that it serves them right.

What is a health insurance?

A health insurance is a comprehensive plan that covers the cost of medical treatment, hospitalization charges as well as pre and post hospitalization expenses. The insured pays a premium against this policy every year to keep enjoying its benefits. In India, there are mainly two types of health insurance plans:

Hospitalization Health Insurance Policy

Hospital insurance, also called as an indemnity plan, pays for the medical costs that arise from a hospital stay up to the sum insured.

The sum insured can be fixed in two ways:
  • For a single person, in case of an individual health policy
  • For the complete family, in case of a Family Health Insurance policy
An indemnity plan should cover expenses such as:
  • Doctor’s fee
  • Pre and Post Hospitalization Charges
  • Operation Theatre charges
  • Room Rent
  • Day Care Procedures
  • Medical Check-ups

While individual health policies work for people who don’t have any dependents, families are advised to go for a combined insurance plan. This is beneficial because, a family health insurance provides a higher sum insured, which can be availed by any of its members.

Critical Illness Health Insurance Policy

These policies are benefit based plans that provide a lump sum amount post the diagnosis of critical illness. A critical illness is severe and even fatal in nature. It is very important to cover yourself against these diseases, as they involve huge expenses.

A prudent Critical Illness Health Plan should cover illnesses such as:
  • Heart attack
  • Stroke
  • Cancer
  • Paralysis
  • Kidney Failure

Such plans are vital for they help cover expenses which occur during the treatment of these critical illnesses. These expenses include charges for follow-up medical tests, dietary aids, machines which monitor vital stats such as BP monitoring machines and other such charges.

Many peopleare not aware about the facts and features of different health insurance policies and hence end up making a wrong choice. In addition, most salaried employees feel that they don’t need another policy as they have the company insurance cover, not realising that this cover is likely to fall short when actually put in use stand terminated when they part ways with their employer. This limited awareness is the cause behind people choosing plans that do not cover all the risks. Therefore, it is very important to learn about the benefits that differentiate these plans from one another.

Moreover, people often do’t select personal accident as a part of their insurance plan. It is important to understand that although health insurance plans cover the cost of the treatment for injuries incurred in an accident, they do not cover additional costs involved. A personal accident cover insures you and your family’s financial security at the time of need. From 100% policy sum assured on death and 100% disability to varying sum amounts based on each scenario to covering emergency ambulance expenses and hospital cash benefit up to 45 days, a personal accident cover is an excellent addition to a health insurance plan.

Being able to put your policy to use at the time of need will only be possible when you choose the right policy package. Ideally, everybody should have a health insurance plan that provides both the basic as well as the extensive coverage. The cost of medicine, treatment and hospitalization is ever increasing; hence, one should get an appropriate health insurance that covers all his/her health needs.

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