About Health Insurance
Health insurance is protection offered against financial losses incurred on account of medical fallouts. It comes in the form of health insurance policies i.e. contracts between an insurance company and a proposer or customer.
Importance of Health Insurance Plans:
Healthcare is becoming increasingly expensive with every passing year. Unfortunately, incomes don’t seem to keep up. It isn’t uncommon for patients to find themselves undergoing a battery of tests and prolonged treatments for ailments that often strike at the most unexpected times. Even routine health-checks can put people out by thousands.
Sedentary lifestyles compound the issue by making it almost inevitable for people to find themselves, or someone close to them, in need of medical attention. Add to this the possibility of contracting a life-threatening illness and the importance of medical insurance becomes pretty evident.
Types of Health Insurance Plans in India:
1) Individual Health Insurance Policies.
2) Family Floater Health Insurance Policies.
3) Senior Citizen Health Assurance Plans.
4) Critical Illness Plans. 5) Maternity Health Insurance. 6) Group/Employee Health Insurance Schemes.
Individual Health Insurance Policies:Under this, the chosen sum assured is applicable to each person covered under the plan, on an individual basis i.e. individual covers for individual members. For e.g. if a 4-member family chooses a sum assured of Rs.5 lakhs under this kind of policy, each member of the family can make claims up to Rs.5 lakhs. If one member makes a claim, it does not affect the cover of the other members.
Family Floater Health Insurance Policies: Under this, the chosen sum assured is applicable to all family members covered under the plan, on a collective basis i.e. one cover for all members. For e.g. if a four-member family chooses a sum assured of Rs.5 lakhs under this kind of policy, all four members are together covered for Rs.5 lakhs. If one member makes a claim, it reduces the cover of the other members to the extent of the claim made.
Senior Citizen Health Assurance Plans: As the name implies, these health plans are designed to meet the needs of senior citizens. Health risks increase with age and insurers are usually hesitant to cover older people. Many insurers, however, have formulated plans that provide attractive coverage at affordable costs to cater to this customer-class.
Critical Illness Plans: These are health protection plans that cover expenses related to specific critical illnesses i.e. those ailments that are generally life-threatening e.g. cancer, kidney failure etc. Critical illness plans are often taken as add-on covers or riders or as a separate cover in addition to a standard plan so as to enhance coverage.
Maternity Health Insurance:Many standard health plans are now designed to include maternity and related expenses as part of their coverage. It generally covers expenses of deliveries (normal or c-section) and pre/post-natal care. This cover sometimes extends to meet expenses pertaining to new-borns e.g. vaccines.
Group/Employee Health Insurance Schemes: These are plans wherein health insurance is provided to a particular group of people e.g. an organisation or association or to the employees of an organisation/company. Usually offered as an additional benefit, premiums are shared between the employer and employees making health insurance an affordable option for workers.