Types of Health Insurance in India

Types of Health Insurance - BimaBandhu

The increasing uncertainties related to our health have made health insurance purchase a necessity in our lives. With medical inflation soaring to unexpected rates, it makes sense to buy a health insurance policy that will prevent any financial burden during any medical emergency. However, the selection of the right types of health insurance requires careful consideration from various angles.  

In other words, by knowing different types of health insurance plans, you can make an informed decision. Let’s cover the rundown on various types of health insurance in India. 

Types of Health Insurance Policies at a Glance 

Types of Health Insurance Plans 

Sub-types 

 

                   Indemnity Plans 

Individual insurance  
Medical insurance 
Family Floater insurance 
Senior citizen health insurance 
         

                 Defined-benefit Plans 

Critical illness insurance 
Personal accident plan 
Hospitalization cash benefit plan 

 

Let’s cover each of these types of health insurance plans in detail. 

How Many Types of Health Insurance Plans Are There in India? 

Basically, there are two main types of health insurance policies: 

  • Indemnity plans 
  • Defined benefit plans 

What is indemnity health insurance? 

These types of health insurance plans cover hospitalization expenses for the insured individual up to the chosen limit of sum insured. These plans are further classified into: 

  • Mediclaim insurance 

Mediclaim insurance provides coverage for the hospitalisation expenses you incur due to accidental stay or illness, such as nursing charges, doctor’s fees, surgery expenses, etc. It is commonly known as mediclaim insurance and is offered by various health insurance companies in India. 

  • Individual coverage 

As the name suggests, these types of health insurance plans cover an individual only. If you buy this plan for yourself, you will receive insurance cover for the amount incurred during hospitalisation. You can file a claim up to the limit of basic sum insured defined in your policy. 

  • Family floater coverage 

Family floater health insurance plans are meant to cover the entire family under one plan, hence the name. With these types of health insurance plans, you need not buy individual policies for each of the family members separately. The chosen sum insured is divided amongst the covered members and the equivalent premium is comparatively lower than mediclaim or individual insurance policies. 

  • Senior citizen health insurance 

These health insurance policies are meant to provide insurance cover to people at or above the age of 65. If you want to buy a policy for your parents or grandparents who fall into this age bracket, you can choose this type of policy. 

Senior citizen health insurance offers coverage for hospitalisation and post-treatment expenses, depending on the terms of the policy you buy. Since individuals at this age are more prone to health problems and certain diseases, the premium of these types of health insurance plans in India is higher than the individual insurance. 

Also Read: Why Buy Health Insurance for Parents?

What are Defined-Benefit Plans? 

Under defined-benefit plans, you (the insured) get the insurance coverage in the form of a lump sum amount when diagnosed with a specific illness. These plans are further classified into: 

  • Critical Illness Insurance Plans 

These plans are designed to cover the expenses related to specific critical illnesses. Buying these types of health insurance plans in India can help you mitigate the rising expenses of various severe health problems. 

On diagnosis of the illnesses specified in the chosen plan, you will receive a pre-decided amount to pay for the medical expenses in most cases. However, the specific benefits of such a plan can be best understood by reading the policy document carefully. 

Also Read: All About Critical Illness Insurance

  • Hospital Cash Benefit Plan 

Some health insurance plans offer this exclusive benefit as an in-built coverage. As the name suggests, the insured receives a daily cash allowance, up to a certain limit, other than the hospitalization expenses. To more about various aspects related to this benefit or plans, you are advised to ask a reliable insurer. 

  • Personal Accident Insurance Plan 

These types of health insurance plans in India cover the insured against accidental death or injury. The insured or his/her family receives a lumpsum amount in case of loss of income due to partial/total disability or death of the insured.  

Also Read: What Does the Best Health Insurance Plan Cover?

Other Types of Health Insurance Plans Available in India 

  • Group Health Insurance 

Under this type of health insurance, all the members of a group are provided with insurance coverage under the same policy. Many medium and large enterprises purchase group health insurance policies for their employees. Also, their premium is comparatively lesser than the individual health insurance plans. 

  • Disease-specific Insurance 

Because of the higher risk of contracting different diseases, many insurance companies offer disease-specific health insurance plans to benefit the policyholder. These insurance policies provide coverage for specific diseases as listed in the policy document. Other terms and conditions of these types of health insurance plans may vary from one policy to another. 

Explore More: 

Reasons to Buy Different Types of Health Insurance at Young Age 

  • Cost savings because of lower premium 
  • Ease of getting health insurance because of low risk of contracting different illnesses 
  • Tax savings under Section 80D 
  • No loss of life-long savings 
  • No Claim Bonus 

Also ReadAll About Health Insurance in India 

Things to Consider at the Time of Buying Health Insurance 

  • Your age 
  • Features and benefits of chosen types of health insurance policies 
  • Deductibles 
  • Your medical history 
  • Policy inclusions and exclusions 
  • Sum insured 
  • Waiting period 
  • Network hospitals 

The Bottom Line 

Having health insurance by your side is crucial in these tough times to avoid the financial burden arising from a medical emergency. To get the maximum benefits from a policy, it is important to understand different types of health insurance plans available. Comparing these plans in terms of premium, benefits, and insurers’ reputation will help you make an informed decision. 

 

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