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What are the kinds of health insurance plans available?

​There are several kinds of health insurance plans. Here are the main ones:

• Individual plans : These are basic health insurance plans, covering the hospitalisation costs of the person insured
• Family plans : These are health insurance plans where all family members can be included in a single coverage model. In this case, a fixed sum assured is provided to any family member who falls ill
• Senior citizen plans : These are special insurance policies designed to meet the needs of senior citizens who are above 60 years of age
• Critical illness insurance plans : These plans cover specific critical illnesses such as kidney ailments, heart attacks and so on. Cancer insurance and other plans are included in this section as well
• Personal accident insurance : These plans offer coverage for hospitalisation in case of any motor accident
• Maternity plans : These policies offer coverage for pre and postnatal medical care and delivery expenditure. They also offer coverage for the new-born for a certain duration along with ambulance costs
• Unit-linked health insurance plans : These plans offer health insurance coverage while also helping build savings to meet those costs which do not have coverage under the policy. These are insurance-cum-investment plans that help you accumulate corpus

Top Reasons to Buy a Health Insurance Plan

• Beat Medical Inflation - A health insurance policy can help you pay your medical bills, including pre and post-hospitalization expenses, today as well as in future despite the rising medical costs.
• Afford Quality Medical Treatment - It helps you to afford the best quality medical treatment and care so that you can focus only on getting cured.
• Fight Lifestyle Diseases - It allows you to pay for the long-term treatment of lifestyle diseases like cancer, heart attack, etc. that have been on the rise with the changing lifestyles.
• Protect Your Savings - It helps you to protect your hard-earned savings by covering your medical expenses so that you can avail the required treatment without any financial worries.
• Avail Cashless Hospitalization Facility - It allows you to obtain a cashless hospitalization facility at any of the network hospitals of your insurance provider by raising a cashless claim.
• Get Tax Benefits - It enables you to save tax on the health insurance premium that you’ve paid under section 80D of the Income Tax Act for better financial planning.
• Ensure Peace of Mind - It allows you to obtain medical treatment with peace of mind as you do not have to worry about paying the hefty hospital bills.

Key Factors to Consider before Buying a Health Insurance Plan

There are a few factors that you should consider closely to make the right decision while buying a health insurance plan:

• Check the Scope of Coverage -The policy coverage and the sum insured amount will decide the type of illnesses and surgeries that you can claim during the policy term. Closely look at the benefits offered like hospitalization expenses, daily cash benefit, COVID hospitalization cover, critical illness cover, maternity cover, etc. while choosing a health plan.


• Adequate Sum Insured - The sum insured amount is a crucial deciding factor in selecting a medical insurance policy. Looking at the ongoing inflation it is advisable to buy a health insurance plan with a minimum sum insured of Rs 10 lakh that can go up to Rs 1 crore. If it’s a family floater policy or senior citizen insurance, the higher the sum insured the better the coverage will be.


• Policy Type - There are different types of medical insurance policies that are available in India. As per your requirement, you can choose to buy individual health insurance, senior citizen health insurance, family floater or critical illness plans. Moreover, you can buy Top up and Super Top up health insurance along with your existing health plan to enhance the coverage. This is beneficial in case your base sum insured gets exhausted during the treatment. You can choose this option at the time of policy purchase and renewal.


• Waiting Period Clause - Your health insurance policy only comes into action once the initial waiting period is over. If any claim is filed during the initial waiting period except for accidental hospitalization claims, the insurer can reject it. Moreover, the waiting period clause also applies to pre-existing diseases like thyroid, blood pressure, diabetes, etc. It is also applicable to specific illnesses, treatments, and maternity cover. You can choose a plan with a minimal waiting period.


• Co-payment Clause - Your medical insurance policy may have a co-payment clause, which means a certain percentage of the claim amount should be borne by you (insured). The co-payment option does not have any effect on the sum insured. It allows you to reduce your premium to a certain extent but certainly increases your out-of-pocket expenses. Only opt for this clause if you can pay off a portion of your hospitalization bills, that can be 10% and above without a financial burden.


• Room Rent Sub-limits - A health insurance plan may have various sub-limits and the most common one is the room rent sub-limit. For instance, if your medical insurance policy comes with a sum insured of Rs 3 lakh with a sub-limit of 1%on daily room rent, then your room cost will be covered up to Rs 3,000 per day. Any additional amount on room rent will have to be paid from your own pocket. So, a health plan with no or minimal sub-limits is advisable.


• Network of Cashless Hospitals - Check the list of network hospitals for an insurance company where cashless claims can be filed. The maximum number of network hospitals you have in your vicinity,the better are the chances of availing cashless hospitalization benefits.


• Lifelong Renewability Option - Medical insurance policies are usually renewed every year. When the policy term is about to end, in order to continue the insurance coverage, the insured has to pay the insurance premium at the time of renewal. When buying a health insurance plan, choosing a plan with a lifetime renewal option is beneficial in the long run.


• Premium Loading Factor - Premium Loading is the additional amount that is charged to a risk-prone policyholder in the premium, especially in senior citizen health insurance plans. Choosing a medical insurance plan with no loading will save you from paying an extra premium. Some insurers also charge a claim loading. This aspect, though ignored in the beginning, usually increases your out-of-the-pocket expenses at the time of claim.


• Check the Claim Settlement Ratio - This is an important criterion to assess the credentials of an insurer. You should always go with a company with a good claim settlement record. A claim settlement ratio above 80% can be an ideal choice.

How to choose the right kind of Health Insurance for yourself?

There are several kinds of health insurance plans. Here are the main ones:

• Right Coverage : Make sure your health plan covers a wide range of medical problems and can help you avail of various pre and post-hospitalisation benefits. If the health insurance you have bought is for your family, it is necessary to make sure that it covers the needs of all the family members


• Suits Your Budget : As much as it is important that the health plan meets your needs, it is equally important that it also suits your budget. As your income increases, and the size of your family as well as requirements change over time, the plan can further be reviewed accordingly


• Individual Plans Or Family Plans : According to your status, select an individual or family health plan. If you have a family who needs your support, opt for a family health plan so as to reap maximum benefits at a comparatively low cost


• Lifetime Renewability : It is important to know the term for which the policy would cover you. After all, one is more likely to require medical facilities at a later stage in life, as we approach old age. Therefore, a plan which offers lifetime renewability would be more beneficial


• Preferred Hospit Settlement Ratio : It is advisable to choose an insurance provider with a higher claim settlement ratio. The claim settlement ratio is the number of claims settled by the insurance provider over the total number of claims received