Types of Health Insurance - howmanytypesofinsurance

Every individual has different requirements from their insurance plan, depending on their financial situation. Therefore, you must be exceptionally careful and thorough while investing in a health plan.

It is a critical life decision that will impact your future significantly. Consequently, it is essential to understand the types of health insurance plans available today to provide optimum coverage for yourself and your loved ones.

There are two categories of health insurance policies.

1. Indemnity Plans
2. Defined-Benefit Plans

1. Indemnity Plans
These are the traditional health insurance plans that offer coverage for your medical expenses up to the sum insured. Here are the plans that are included:
Mediclaim Insurance – This provides compensation for the hospitalization expenses that occur due to accidental stay or illnesses. It includes nursing charges, surgery expenses, oxygen, anesthesia, doctor’s fee, etc.
Individual Insurance – This is the most common type of health plan available. As the name suggests, it is meant for the insured individual only. The payable premium depends upon the insured individual’s age, medical history, and other relevant factors. You can add additional members to the plan by paying an extra premium.
Family Floater Insurance – It provides coverage for the entire family under a single premium amount. This amount is comparatively lesser than that of an individual health plan. For a family with no significant health issues, this option might be preferable. However, if there is a family member with severe health issues, they might require a sizable amount of the sum insured, which will leave other members with a lesser coverage amount.
Unit Linked Health Insurance – Commonly known as ULIPs, this plan is a combination of investment and insurance coverage. A portion of the premium amount is invested in mutual funds while the rest of it goes into securing insurance. The returns are subject to market performance.
Group Mediclaim – This is a popular choice among large and medium scale enterprises. It offers health coverage for the employees under a common plan.

2. Definite-Benefit Plans
These are the type of health plans that provide compensation for a lump sum amount when the insured is detected with an illness. Here are the plans included:

Critical Illness Plan – This plan offers a pre-determined amount of compensation upon detecting a critical illness regardless of pre or post-hospitalization charges. These critical illnesses majorly include life-threatening diseases such as cancer, multiple sclerosis, paralysis, kidney failure, stroke, paralysis, and more.
Hospital Daily Cash Benefit Plan – Under this plan, a pre-set sum assured is offered as compensation for each day of hospitalization. These plans are available as standalone covers or riders.

Personal Accident Plan – This plan provides compensation in case of an accidental injury or demise. Some Plans also cover loss of income due to a temporary permanent disability rendering a person unfit to go back to work for a few days.

How to Choose Health Insurance Plan?
While deciding to purchase a health insurance plan, there are certain things you must consider. Here’s how to choose a plan that provides maximum benefits:

You must choose the sum-insured precisely based on your age, marital status, and health condition. Inadequate coverage will defeat the purpose of a health plan and cause financial strain. It is often recommended to invest in a health plan at a younger age since the premium amount is comparatively lesser and waitig periods can be consumed during the early years when one is healthy When you purchase a health plan, there is a waiting period before the insured can claim the compensation. Since different plans have varying terms and conditions, make sure that your plan's waiting period is relatively lesser Consider the claim-settlement ratio of the insurance provider as well Make sure to look at the network list of hospitals Strengthen your plan by adding relevant riders to it Eligibility Criteria to Buy Health Insurance Principally, if you are an earning individual, it is highly recommended to invest in a health insurance plan. It is a significant financial decision that helps plan the future.

Insurance providers have specific eligibility criteria in place. Most often, this includes a medical screening of the person to be insured. It evaluates their health according to specific medical parameters to make a note of any underlying medical conditions. It enables the underwriter to arrive at a reasonable cost of the premium. It also helps in avoiding any future disputes over the insurance claim.

 
Documents Required to Buy Health Insurance
Different insurance providers require a different set of documents when buying health insurance. Here is a list of standard documents that are needed:

Age Proof – A voter ID Card, Pan Card, Aadhar Card, Passport, Driving License, or Birth Certificate.
Identity Proof – A Voter ID Card, Passport, Aadhar Card, or Driving License
Address Proof – Ration Card, Driving License, Passport, Rent agreement if applicable, PAN Card, Aadhaar Card and utility bills like electricity bill, telephone bill, etc.
Passport-size photographs (if demanded by the insurer)
Medical reports (if demanded by the insurer)
Proposal form duly filled in and signed

Frequently Asked Questions (FAQs)
Q. What is the right age to buy health insurance?
A. There is no hard and fast rule, but it is often recommended to buy a health plan at a young age. It might help you escape the waiting period or higher premium charges due to pre-existing diseases. It is also beneficial for long-term financial planning.

Q. Is there a limit on the number of claims that I can avail in one year?
A. No, there aren’t any limits on the number of claims. However, the claim amount cannot exceed the sum insured.

Q. What is a cumulative bonus?
A. In case of no claims in a year, most insurance providers offer an increase in the sum insured up to a certain percentage as a part of a cumulative bonus.

Q. What can I do if I am dissatisfied with my health policy?
A. In such a case, you can switch to an insurance provider who is more suitable to you. The IRDAI introduced this feature in 2011; however, it is essential to note that porting the policy is different from cancelling or not renewing it.

Q. Do I have to pay from my pocket despite availing a cashless claim facility?
A. Yes, certain charges are not reimbursable under the policy, such as administration/registration charges, visitor pass charges, special nursing charges, etc.