Health issues are rapidly increasing, creating a hole in your pocket and exhausting your savings. You should be financially prepared to tackle any unforeseen events in your life. The best health insurance policy offers financial coverage against medical expenses arising from accidents, injuries, or illnesses. It helps in sound financial planning and helps deal with medical inflation. You can also avail of tax benefits for the premium paid for the health insurance policy.
Below are the broad types of insurance plans to help you compare and choose the ones per your needs.
Types of latest health insurance plans
Individual health insurance
It offers coverage to a single individual against medical and hospitalisation expenses. The policy’s premium depends upon the policyholder’s medical history and age. You can cover your spouse, children, and parents under the same plan by paying an additional premium.
Family floater health insurance
It is a budget-friendly policy that covers the entire family at a single premium. Under the plan, the sum insured is shared equally among the family members, and the premium is calculated based on the eldest member’s age.
Senior citizen health insurance
It provides coverage against medical expenses incurred by people above 65 years. The plan is a little expensive as senior citizens are more likely to catch an illness.
Personal accident insurance
The personal accident insurance plan offers coverage against unforeseen situations like accidents resulting in death, bodily injury, permanent partial disability, or permanent total disability. Some plans also provide orphan and education benefits to support the insured’s dependent children.
Critical illness insurance
The plan offers comprehensive coverage against life-threatening illnesses such as renal failure, cancer, first heart attack, paralysis, major organ transplant, and primary pulmonary arterial hypertension. It provides a lump sum payment after a claim is filed.
Top-up health insurance
It offers additional coverage to the policyholder over the existing health insurance policy during a medical emergency. It is used when the sum insured has exhausted.
Maternity health insurance
It comes as a rider along with the basic health insurance plan and covers the expenses incurred for normal and c-section deliveries. The policy has a minimum waiting period of two years.
Inclusions of health insurance plan
- In-patient hospitalisation expenses
- Pre and post-hospitalisation expenses
- Ambulance expenses
- Domiciliary treatment
- Daycare treatment
- AYUSH treatment
- Annual health checkups
- Surgeries related expenses
- Organ donor expenses
- Maternity cover
Exclusions of health insurance plan
- Self-inflicted injuries
- Dental treatment
- Cosmetic treatment
- Suicide attempts
- Injuries due to alcohol or drug abuse
- Damages due to war or riot
- Piles, hernia, and joint replacement treatment
Things to keep in mind while comparing health insurance plans
These are empanelled hospitals that offer a cashless treatment facility to the policyholder. You should always opt for an insurance company with many network hospitals. Ensure your selected hospital is included in the insurer’s list to enjoy hassle-free hospitalisation.
Waiting period for pre-existing illnesses
Most health insurance policies offer coverage against pre-existing illnesses such as hypertension, thyroid, and diabetes only after a waiting period of 1 to 4 years. You must select a Best health insurance plan with a shorter cooling period.
It is an arrangement in which a policyholder agrees to pay a fixed percentage of the claim amount out of his pocket. It discourages policyholders from raising minor claims and getting admitted to costly hospitals. If you want a lower premium for your health insurance policy, then you should go for this clause. The lower is co-payment, the higher will be the premium amount.
Claim settlement process
If you want a fast and smooth settlement of claims, you should choose an insurance provider with a high CSR. The claim settlement ratio is the percentage of claims settled by an insurer out of the total received claims. It indicates the trustworthiness and ability of the insurer to settle claims.
Another factor to remember while comparing health insurance policies is their comprehensive coverage. You should opt for a plan that safeguards you against many medical expenses and meets your needs.
Inclusions and exclusions
Before purchasing a health insurance policy, it is vital to understand what is covered and not covered. If you are clear about the coverage of the plans, you will not be disappointed while filing claims.
Add-ons are the extra benefits that increase the scope of standard health insurance policies. These are hospital cash cover, maternity, and newborn baby cover, OPD cover, emergency ambulance services, and room rent waiver. So, you should look for health insurance plans that let you include add-on covers.
Various health insurance policies are available in India, but selecting the right one is crucial to get affordable premiums and optimum coverage. You should compare different health insurance plans before making a choice.