Types of health insurance policies

Types of health insurance policies

Health Insurance offers financial protection to the policyholder for any unexpected and unplanned Hospitalisation, for the sum insured under the policy. A Health Insurance Policy can be taken by anyone free from mental and physical disorders, who is above 18 years of age and is generally available from a sum insured of Rs.1 lakh onwards. Health Insurance is required for meeting expenses arising out of unforeseen Medical Emergencies. The following Health Policies are available in the market:

a) Individual Policies: Suitable for bachelors, who have just started their career or for major students, who are not otherwise covered by the Group Policies/Family Floater policies of their parents. Since there will be only one individual under this policy, entire sum insured can be used by him/her during the policy period in case of hospitalisation.

b) Family Floater: Family Floater offers a Health Cover to all the members of the policy on a floater basis i.e., the total sum insured can be used either by one or all the members of the policy in the case of a claim. For instance, if the policy is for Rs.5 lakhs and there is a medical emergency involving more than one member under the policy, the sum insured can be shared by both of them up to Rs.5 lakhs in total.

c) Top Up Policy: Top Up policies are offered by many General Insurance companies, which cover medical expenses arising out of any medical contingency with a deductible sum insured. For example, a client has two health policies, an Individual Health policy for Rs.3 lakhs and a Top Up Policy for Rs.10 lakhs with a deductible of Rs.3 lakhs – in case of a claim of Rs.3 lakhs and above, the Top Up policy can be used for the same claim, the only condition being, the Top Up Policy will be triggered only in case of a single claim exceeding the deductible amount.

d) Critical Illness Cover policy: The health policies issued under this category exclusively cover the medical expenses arising out the listed Critical Illnesses under the policy, which vary with the product. These plans typically cover hospitalisation arising out of first Heart Attack, Cancer, Coronary Artery Bypass Surgery, Brain Stroke, Renal Failure, Major Organ/Bone marrow Transplantation, End Stage Liver Failure, Major Burns etc.

As such, it is always advised to buy Health policies which adequately cover yourself and all your family members from all uncertainties that this life offers you!

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