Types of health insurance policies in India

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Health plans in India come in different variants. Each variant offers tailor-made insurance coverage for different needs. Let us explore the different types of health insurance plans available in the health insurance sector:

Firstly, we can divide health plans into two categories – indemnity health plans and fixed benefit plans. Each category is then subdivided into different types. Let’s understand:

Indemnity health insurance plans

Indemnity health plans are those types of health insurance policies which pay the actual amount of expenses incurred on medical emergencies. The maximum limit of claim is the sum insured.

Fixed benefit health insurance plans

These plans pay a fixed amount of claim irrespective of the actual expenses incurred. The fixed claim payable is mentioned beforehand and is paid if the claim is incurred.

Here are the sub-types of both types of health insurance policies:

Types of indemnity health plans

  • Individual health insurance – This policy covers a single individual on a single sum insured basis.
  • Family floater health insurance – The whole family can be covered under a family floater health plan. A single policy is issued with a single sum insured. The family members share the sum insured on a floater basis where each member can utilise any amount up to the sum insured. Family includes self, spouse, dependent children and dependent parents. Some plans also offer coverage for extended family members too.
  • Senior citizen health plans – These health plans are specifically designed for covering senior citizens who are aged 60 years and above. The plan has a low waiting period and limited sum insured option.
  • Top-up health plans – Top-up plans are designed to supplement your health insurance coverage at minimal premium rates. There is a deductible limit under the plan. If the claim is more than the deductible limit, it is paid.
  • Super top-up plans – These plans are also like top-up health plans where there is a deductible limit. However, the deductible is applied on the aggregate claims made in one policy year and not on each claim.
  • Disease specific health plans – Under these plans, specific ailments are covered. The plan covers hospitalisation and medical expenses which are incurred on the specified illness covered by the plan. Common disease specific plans include plans designed for diabetics, heart patients and dengue.

Types of fixed benefit health plans

  • Critical illness plans – These are the most popular fixed benefit health insurance plans. Critical illness health insurance plans cover a list of specified critical illnesses. If the insured is diagnosed with any one of the covered illnesses, the plan pays the sum insured in lump sum irrespective of actual medical costs incurred.
  • Hospital daily cash plans – These plans provide an additional coverage benefit in case of hospitalisation which is for a minimum of 24 hours. Under hospital daily cash plans, a fixed benefit is paid in the event of hospitalisation. This benefit is fixed at the time of buying the plan.

Besides the above-mentioned types of health plans, group health plans are also available. These plans cover the members of an identified group. The most common example is the employer sponsored group health insurance plan taken on the life of employees.

Choose the suitable types of health insurance policies for your needs when you are buying health insurance.

Choose wisely!

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Gayatri Prabhu, Head-Digital Business at Mahindra Insurance Brokers Limited (MIBL) is one those few digital leaders who has the width and depth that is required to execute an ROI driven holistic digital strategy. She cuts through the noise, identifies the critical levers and leads her team to successful execution of the defined strategy. Her core mantra to win new and retain existing customers is: understand the consumer behavior and craft experiences around it.

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