Various types of health insurance

Considering the rising expenses of medical treatment, medicines and remedies, health insurance has become a vital thing. To buy an insurance, firstly, you will have to get an idea of the various types of b available in the Indian market in order to get your hands on the best policy to suit your requirements and protect your family. These insurance plans not just take care of your family needs, but also help you in tax saving investments up to the limit of Rs 1500 and additional limit of 20,000 under section 80 D when getting an insurance policy for your parents (senior citizens).

Individual health insurance

Under this policy, the insured is liable to receive expenses for hospitalization up to the sum assured. For instance, if your family has 3 members in total, and you have opted for an individual insurance for a cover limit of Rs 3 lac each. In this case, if the individual gets hospitalized, the expenses will be taken care by his/her policy up to the maximum sum of Rs 3 lac. The policies of the other two members would remain intact until and unless the need arises and they use their health policies to recover the medical costs. However, there are very rare chances of all the family members getting ill and seeking hospitalization in the same year.

Family floater health insurance

A family floater plan offers a single mediclaim policy which covers all the family members up to the extent of the sum assured. Family floater premiums are relatively lower than that of individual policies. For instance, a family of 3 members can choose a family floater plan with coverage limit of up to Rs 6 lac. If any member of the family requires treatment and the cost incurred is around 2 lac, it will be settled by the insurer and the remaining 4 lac can be later utilized by another family member within the same policy, in case the need arises. This plan is more advantageous as the chances of all the family members falling ill within the same year is comparatively low and the coverage limit for the person who requires treatment also increases. Whenever opting for a family floater plan, choose a higher coverage amount.

Group health insurance

These health insurance policies are usually provided by an employer to his employees which covers their family members as well. Your group health insurance policy remains valid till the time you are part of the organization.After you leave the organization, your policy ceases. Thus, it is advisable to have a personal health insurance policy as well.

Unit Linked health insurance

ULIP (Unit Linked Insurance Plans) is new to the Indian markets. These plans consist of two factors: regular health insurance and market linked investments. If the sum invested in the markets earns fair returns, then, it can help in stabilizing your health insurance. This amount can be utilized to cover other additional medical expenses. In an unfortunate scenario, if the invested assets fail to perform in the market, you might also have to let go of your capital. Thus, it is said that ULIP are suitable for people who have a tendency of bearing risks and have a good knowledge about market investments.