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| HEALTH INSURANCE: TYPES AND HOW TO CHOOSE A GOOD HEALTH INSURANCE (finsurance401.blogspot.com) |
Health insurance is an insurance product which covers medical and surgical charges of an assured repayment individual. It reimburses the expenses suffered due to illness or injury or pays the care provider of the insured individual directly.
Health insurance is a financial tool that provides financial coverage for medical expenses. A health insurance policy is a contract between the insurance company and an individual. The individual pays a premium to the insurer and the insurer offers financial protection against healthcare expenses to the individual in return.
Types of Health Insurance :
HEALTH INSURANCE: TYPES AND HOW TO CHOOSE A GOOD HEALTH INSURANCE
1. Individual Health Insurance:
You can purchase an individual health insurance policy to provide cover for yourself, your partner, your children and your parents. These policies usually cover all kinds of medical expenses, including hospitalisation, daycare procedures, hospital room rent and more. Under an individual health insurance plan, each member has their own sum assured amount.
2. Family itinerant Health Insurance
A family itinerant plan allows you to cover your family members under a single policy and everybody division the sum insured amount. These plans are typically more accessible than individual plans since the sum insured is shared.
3. Senior Citizens Health Insurance
These health plans have been planned specifically keeping the medical needs and concerns of senior citizens in mind. Most senior citizens policies offer additional cover, such as household hospitalisation and even some psychiatric benefits.
4. Critical Illness Insurance
Several lifestyle-related diseases are on the rise. Health issues such as cancer, stroke, kidney failure and cardiac diseases can be very expensive to deal with and manage long-term. This is precisely why critical illness insurance policies have been created.
5. Mediclaim Plans
Mediclaim or hospitalisation plans are the most basic type of health insurance plan. They cover the cost of treatment when you are admitted to the hospital. The payout is made on actual expenses incurred in the hospital by submitting original bills. Most of these plans cover the entire family up to a certain limit.
6. Critical Illness Insurance Plans
Critical Illness Insurance Plans cover specific life-threatening diseases. These diseases could require prolonged treatment or even a lifestyle change. Unlike hospitalisation plans, the payout is made on Critical Illness cover chosen by the customer and not on actual expenses incurred in the hospital. The cover gives the flexibility to use the money for changing lifestyles and medicines. Also, it’s a substitute for income for the time you cannot resume work due to illness. Payouts under these plans are made on the diagnosis of the disease for which the original medical bills are not required.
Table: Comparison of Different Types of Health Insurance
| Type of Insurance | Coverage | Best For | Key Features |
|---|---|---|---|
| Individual Health | Single person | Self-employed, individuals without employer-provided insurance | Personalized coverage, customizable benefits |
| Family Health | Entire family | Families | Covers all family members under one policy |
| Group Health | Employees of an organization | Employees | Lower cost, extensive coverage, provided by the employer |
| Critical Illness | Specific critical illnesses | Individuals at high risk | Lump sum payment on diagnosis covers severe illnesses |
| Senior Citizen Health | Senior citizens | Individuals over 60 | Coverage for pre-existing diseases, critical illness coverage |
| Maternity Health | Childbirth-related expenses | Young couples planning a family | Covers prenatal, and postnatal care, delivery expenses |
| Top-Up Health | Additional coverage | Those needing extra coverage | Enhances existing policy, covers high medical expenses |
How to choose a good health insurance plan?
When choosing a health insurance plan, the following factors should be considered:
- Coverage of hospitalization, outpatient care, prescriptions
- Premiums, deductibles, and copayments
- Network of hospitals
- Prescription drug coverage and coverage limit
- Reading customer reviews
- Exploring additional coverage features
- Anticipating future needs
- Comparing policies of different providers
- Setting up a budget
- Seeking guidance from a professional
Choosing the right health insurance involves understanding the various types available and evaluating them based on your specific needs and circumstances. By carefully assessing your options and considering factors like coverage, cost, and benefits, you can select a health insurance policy that provides the best protection for you and your loved ones.