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Tata Capital > Blog > Insurance > Types of Health Insurance and Their Advantages


Types of Health Insurance and Their Advantages

Types of Health Insurance and Their Advantages

Medical emergencies and unexpected health crises can disrupt your life. To deal with this situation, one does not only require the support of one's loved ones but also financial support.

Access to financial support can be difficult for most, which is where health insurances come in. Health insurance not only safeguards you from financial pressure during a crisis, but it also provides tax benefits, among other benefits.

But given the myriad of available options, which health insurance plan would suit you the best?

Read this article to get clarity on the different types of health insurance.

What is health insurance?

In a medical crisis, one of the seamless ways to obtain money is through health insurance. It functions as a financial shield that gives people access to money when they need it the most.

Health insurance covers an insured person's medical and surgical expenses incurred due to an illness, accident, or injury.

Individuals can obtain such coverage in exchange for monthly or annual premium payments for a set period. It operates by paying the covered individual's care provider directly or reimbursing expenses incurred due to illness or accident.

Types of health insurance plans

#1 Individual health insurance

An individual health insurance policy is meant for a single person and can only be bought by one individual.

Such types of medical insurance plans cover all the hospitalisation, surgical, pre-, and post-medication expenditures till the insured limit is reached by an individual singly.

The premium for this insurance is determined based on the individual's past medical records, age, and pre-existing disease.

Moreover, the insured individual can also cover his spouse, parents, and children by paying an extra premium under the same plan.

#2 Family floater health insurance

The family floater health insurance plan covers medical benefits like surgical and hospitalisation costs for all family members.

Usually, the constitution of a family under this plan is an individual, their spouse, and their children only. Senior citizens are not eligible for family floater insurance since their medical requirements could be more complex.

The determining factors of premiums for this type of health insurance policy are-

  • The age of the oldest member in the family
  • The medical history of all individuals covered
  • Pre-existing disorders of any individual (at the time the insurance policy is purchased)

#3 Critical illness insurance

Several lifestyle-related disorders are becoming more prevalent. Cancer, kidney failure, stroke, and heart disorders are among those diseases. They are not only life-threatening but are also exceedingly expensive to treat and manage.

A critical illness insurance policy is your solution when you get diagnosed with any such disease. These policies cover particular illnesses and frequently pay out claims as a single lump sum payment upon diagnosing a critical disease.

The list of these diseases is shared when the insured purchases the insurance at the time of insurance purchase. And the insurance coverage is also limited to the same list of diseases.

#4 Senior citizen health insurance

Senior citizen health insurance in India covers persons aged 65 and older.

This is ideal for children seeking insurance for their parents or grandparents who pass the age limit.

This type of health insurance plan covers hospitalisation, post-treatment expenditures, and medications, whether caused by a health problem or an accident.

In addition, several other benefits, such as domiciliary hospitalisation and psychiatric benefits, might also be covered under senior citizen health insurance.

However, because people over a particular age are more vulnerable to diseases, the premiums paid here are often higher.

#5 Group mediclaim

Group mediclaim plans are common among employers. Various organisations provide this type of health insurance policy to their employees. It may even be extended to the employee's family members as well.

This health insurance policy functions similarly to an individual or family health insurance policy (depending on who is covered). However, the main difference is that the employer pays the premium. And the policy benefits expire if the individual leaves the organisation.

Advantages of health insurance

1. Helps cover the rising medical costs

Covering the rising medical costs is among the most obvious benefits of all types of health insurance policies. This benefit can also never be overemphasised.

Be it a minor accident or a major medical emergency, medical insurance always protects you.

A medical insurance policy covers everything from ambulance fees to operation fees. This makes it seamless for you to receive the medical and financial care you deserve.

2. Domiciliary treatment

What if you or your loved ones get a disease that can be cured from home under medical supervision? Your health insurance has got you covered here as well. However, the amount and number of days available for domiciliary treatment are limited.

3. Cashless Claim 

To make uncertain times easier to deal with, most health insurance companies go a step ahead and provide cashless treatment. That is, the insured does not have to pay medical fees upfront at the hospital in case of a medical emergency. However, this applies only to hospitals with a tie-up with the insurance providers.

4. Tax benefits

Health insurance not only provides financial assistance during a health crisis. Under Section 80D of the Income Tax Act, individuals can claim tax benefits of up to Rs. 50,000 from their health insurance. How?

The premium that you pay for a health insurance policy can be deducted from taxable income under Section 80D. The maximum amount deductible is Rs. 25,000, which can be increased to Rs. 50,000 for elderly citizens.

Secure your future with Tata Capital

Your individual needs and lifestyle should take the front stage while deciding which health insurance is best for you and your family. For instance, for a bachelor, the individual health insurance plan would be ideal; conversely, for an employer, the group Medicare plan typeswould be the best option.

We have your back regardless of the type of health insurance you choose. With Tata Capital, you can get various types of health insurance plans that suit your lifestyle from top insurance providers. Visit our website to learn more, browse schemes, and register for your scheme online. 

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