How do Different Types of Health Insurance Plans Work

A health insurance policy is the best protection that acts as armor against expenses related to various illnesses, including the COVID-19. However, while purchasing the best health insurance policy, people often get confused about which types of health insurance policies are best for their requirements and needs. Since the markets are crammed with various kinds of health insurance policies thus, it could be an uphill task to pick up the right one. Moreover, you should purchase a health policy cover for every member of your family.

Before making any commitment, always consider the features of health insurance policies and the types of health insurance coverage that you are getting from these policies. Always choose a comprehensive policy that offers maximum coverage and benefits. Ensure that your health policies compensate for all your hospital expenditures, and thus, you don’t need to pay anything from your pocket.

Let’s take a look at 7 different types of health insurance plans and their offerings. Some of these plans are pre-requisite and not to be ignored, while others you may add later according to your requirements.

Individual Health Insurance

In this fast-paced world, individual health insurance must be made compulsory for everyone. Individual health plans are indemnity plans that offer coverage to an individual. The premium of an individual policy depends on the customer’s age, occupation, health condition, and so on. These types of plans reimburse the expenses incurred up to the amount of the cover that you buy. These plans cover all your expenditures if you are hospitalized for at least 24 hours and for daycare treatments too.

Benefits of an Individual Health Insurance Policy

• Tax Benefits: Under section 80D of the Income Tax Act, you are eligible for tax benefits against all your health insurance premiums
• No Claim Bonus: Many insurers enhance your coverage up to the basic sum insured as no claim bonus for each claim-free year.
• Wide range of coverage: A comprehensive individual health insurance policy offers you a plethora of coverage against various illnesses. By selecting various riders, you can even make your policy sturdier.

Family Floater plan

A family floater policy covers members of your family under a single insurance plan. But there is only one sum insured, and it can be shared between every insured family member. Each member can enjoy coverage up to the sum insured. Suppose you purchased a family floater health insurance of Rs. 10 lakh for your three family members. If one member initiates a claim of Rs.5 lakh, then other members can only claim up to the remaining amount of Rs.5 lakhs.

Benefits of a family floater plan

• This plan encourages you to cover all your family members (your spouse, children, parents, or parents-in-law) under one single policy.
• Family floater plans are budget-friendly as compared to individual plans for each member
• Hassle-free renewal process

Critical Illness Plan

A regular health insurance policy gives you coverage for normal diseases. But you should purchase a critical illness plan to stay protected against critical ailments. This type of plan welcomes you with a lump sum amount once you are diagnosed with a serious ailment such as cancer or stroke. The lump-sum amount will help you to pay your healthcare expenses related to the disease. You can repay your loans, children’s education, income replacement, or other healthcare expenses by using this amount. Critical illness plan covers some serious health conditions, including heart attack, cancer, stroke, kidney failure, and paralysis.

Daily hospital cash

This plan offers you a daily cash allowance during hospitalization to take care of hospital-related expenses. Generally, health insurance policies provide from a few hundred rupees to a few thousand rupees to policyholders. Irrespective of your hospital bills, room rent, doctor fees, and other charges, the daily hospital cash plan will give you the cash allowance for the number of days you need to stay in the hospital.

Aarogya Sanjeevani plan

This standard health insurance product was launched by IRDA on April 01, 2020, to simplify health insurance policies. This policy offers customers a basic and standard plan. Aarogya Sanjeevani is offered by all health insurance companies in India with the same benefits. This policy is suitable for first-time buyers and who are looking for budget-friendly basic health insurance coverage. Some features of this plan are,

• Sum Insured: The sum insured amount is between Rs 50,000 to Rs. 10 Lakh.
• Cumulative Bonus: The policyholder gets a 5% bonus on the sum insured for each claim-free year. But NCB can maximum go up to 50%.
• COVID- 19 hospitalization expenses: This policy compensates for all hospitalization expenses due to the COVID-19.
• Waiting Period: The waiting period is 30 days for all diseases
• No Health Check-Up above 45 years: No compulsory medical check-ups for individuals who are above 45 years and have no medical complication

 Corona Kavach Plan

This indemnity health insurance plan is typically designed to reimburse all hospital expenditures related to the COVID-19. If anyone tested positive with the COVID-19, then this policy plan offers coverage for pre-and-post hospitalization expenses, domiciliary treatment costs, homecare treatment costs, and AYUSH treatment. Some intriguing features of Corona Kavach policy are,

Some features of Corona Kavach policy

• This policy plan covers all basic health-related cases of COVID-19
• This policy is available both in individual and floater plan
• The policy tenure period: 3.5 months, 6.5 months, and 9.5 months
• The sum insured amount is between Rs. 50,000 to Rs. 5 lakh
• Minimum entry age: 18 years and the maximum age: 65 years
• The policy has a waiting period of 15 days
• The insured policyholder needs to the premium amount once
• The policy has no capping for room rent
• Emergency ambulance costs up to a certain limit

Corona Rakshak Plan

If you are diagnosed with the COVID-19 and need more than 72 hours of hospitalization, then this policy will give you 100% of the sum insured in a lump sum.

Some intriguing features of Corona Rakshak Policy

• The range of sum insured is Rs. 50,000 to Rs. 2.5 lakh
• This policy offers 100% of the sum insured if a government-authorized center tests a patient
• The waiting period is only 15 days for this policy
• This policy offers coverage for individuals
• This health policy doesn’t come with any deductibles
• Minimum entry age: 18 years and the maximum age: 65 years
• The policy tenure period: 3.5 months, 6.5 months, and 9.5 months
• This policy includes pre-and-post hospitalization expenses for 15 days and 30 days, respectively
• This policy offers ICU cover, ambulance cover, AYUSH treatment cover, and home treatment cover

These are different types of health insurance plans that will meet all your healthcare requirements and needs. Before purchasing any health insurance policy plan, always evaluate your requirements and then take the best decision.