Types of health insurance policies that you can buy
What is health insurance policy?
A health insurance policy is a contract between a policyholder and the insurance provider. Under this contract, the insurance provider pays for the future medical expenses of the policyholder. The limit of the expenses is fixed based on the age and medical history of the insured. In exchange for the insurance coverage, the policyholder pays the insurer a fixed sum that is known as an insurance premium.
Why you need a health insurance policy?
Quality healthcare comes at a cost. Many may find it unaffordable, especially in unexpected medical emergencies. Mounting medical expenses can be too much of a challenge for anyone. A health insurance policy comes as a saviour in such situations.
Health insurance policies also make cashless hospitalisation or treatment possible for the policyholder.
Different types of health insurance policies
Individual health insurance: This policy provides coverage to the individual policyholder. The exact coverage and benefits depend on the insurance premium one pays. This type of health insurance policy is meant for individuals, but the policyholder can always pay an additional premium and add family members under the same plan.
In this, the insured amount for additional family members is determined on an individual basis. The premium is also calculated based on the person’s age, medical history, and the insured amount. If an insured individual files a claim under such a plan, it does not impact the insured amount of other members.
Group medical insurance: This is one of the popular types of health insurance policy that corporate houses buy to provide health insurance coverage to their employees and their family members. The employer pays the entire premium for all the beneficiaries. However, it is not uncommon for employees to pay a part of the premium. The benefits are the same for all the insured individuals. The premium amount here is not much when compared to the premium of individual health insurance policies.
Family floater insurance: As the name suggests, the insurance coverage is available to the family members of the policyholder. The premium is calculated on the basis of the age and medical history of the eldest member covered by the policy. You can also add nominees to a family floater plan.
As these plans offer umbrella coverage, they are easier to manage than adding members to individual health insurance plans.
Critical illness cover is another type of health insurance plan that provides specific coverage to various life-threatening diseases such as heart attack, cancer, and stroke. Most insurance companies pay the insured amount on a lump sum basis in a single transaction.
Then, there are certain health insurance policies that are specially designed for senior citizens to support them during their retirement years.
What are the exclusions under different types of health insurance policies?
Insurance companies use exclusions to limit the extent of coverage. Exclusions are medical conditions or healthcare expenses that are not covered under an insurance policy, and a policyholder cannot ask the insurance companies to pay for them. It is essential to read through the terms and conditions of an insurance policy and identify the exclusions. This helps the policyholder to buy the right kind of health insurance plan.
Common exclusions include:
Cosmetic treatments: Treatments such as plastic surgery or Botox to enhance the appearance are considered cosmetic treatments. Health insurance policies do not cover these. Many insurance policies also exclude dental treatments under this exclusion.
Diseases contracted during the waiting period: The insurance policy benefits only kick in after the waiting period gets over. As such, any illnesses contracted during the waiting period are excluded from the health insurance plan.
Diagnostic expenses: Laboratory tests to detect the onset of any disease are not covered by all health insurance policies. One can opt for a preventive care insurance policy to get coverage for such expenses. However, if the policyholder gets hospitalised due to such a disease, then the insurance company will pay as per the terms of the health insurance.
Alternative therapies: Treatment plans based on naturopathy, Ayurveda, magnetic therapy, acupuncture, etc., are classified as alternative therapies. Any expense incurred on these treatments is not covered.
You can choose from the different types of health insurance to access medical care without putting a dent in your finances. Make sure to get the right health insurance policy for yourself and your loved ones.
Disclaimer: The above information is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale.