What Are the Different Kinds of Health Insurance?

Health is wealth, and investing in health insurance ensures you are prepared for unforeseen medical expenses. Health insurance is a financial shield that protects you and your loved ones during medical emergencies and hospitalisation. There is no specific age for buying health insurance. Medical emergencies can strike anybody. Whether you are a young professional, a growing family, a senior citizen, or a business owner, there is a policy tailored to your needs.

Different Kinds of Health Insurance

With countless options available in the market, understanding the different types of health insurance is important to choosing the right one. When it comes time to select a health insurance plan, it is vital to know the details about how the plans work. There are different plans for different stages of life, and knowing the differences may help you to select one. The right coverage can provide peace of mind, financial security, and access to quality healthcare.

Here are the different types of health insurance

Individual Health Insurance: Individual health insurance is one of the most common types of plans. It is meant for a single person. It is perfect for individuals who are self-employed or not covered under an employer’s plan. It covers individual hospitalisation expenses such as surgery costs, day-care treatments, room rent, ambulance services, and pre- and post-hospitalization costs. It applies to individuals aged 18 to 65.

Ideal For: Freelancers, professionals, self-employed individuals, individuals without employer coverage, and anyone seeking personal coverage.
When Should You Buy: If you are unmarried, if your age is above 45 years, if you have any pre-existing disease, or if you have a family history of any disease.
Key Feature: It can be easily customised based on your specific health needs and budget.
For Instance: Suppose a 30-year-old unmarried professional, living independently, on his terms. Suddenly, one day, he is rushed to the hospital for a medical emergency like a kidney stone surgery, costing 2 lakhs. If he has an individual health insurance plan with cashless benefits, he do not have to pay a rupee upfront.

Family Floater Health Insurance:

Family health insurance plans cover the entire family (the policyholder, their spouse, dependent children, and parents/parents-in-law). All the family members equally share the sum insured. Usually, young families prefer to buy this plan because it offers affordability. The plan provides coverage for hospitalisation expenses, including doctor’s fees, daycare procedures, nurse fees, surgery costs, prescription medicines, and more. Additionally, the premium is lower compared to buying individual policies for each member of the family.

Ideal for: Couples and young families with children.
When Should You Buy: Couples who are newly married or nuclear families with young children.
Key Feature: Single premium, shared coverage

Senior Citizen Health Insurance: Senior Citizen Health Insurance policies are specially designed for senior citizens who are usually above the age of 60. These plans focus on age-related health issues and provide coverage for pre-existing diseases, annual health check-ups, critical illness cover, and specialised care. Investing in this plan can help you make your golden years hugely enjoyable. Senior citizen health insurance generally comes with higher premiums.

Ideal for: Senior citizens or retirees
When Should You Buy: When you are above 60 years old or about to turn 60.
Key Feature: Tailored for age-related health concerns.

Mediclaim Health Insurance: It is a fundamental option for people seeking coverage for in-patient expenses related to accidents or illnesses. Mediclaim Health Insurance policy offers compensation for hospitalisation expenses incurred due to medical emergencies.

Group Health Insurance: Group health insurance is a type of health insurance provided by employers to their employees. These can be only for the employee alone or sometimes may cover the family members under the same policy. It provides medical coverage for hospitalisation, including maternity, daycare treatment, outpatient services, and prescription drugs. Premiums are shared between employer and employee. In this, a waiting period is not required.

Ideal for: Corporate employees and organisations
When Should You Buy: When a company or organisation planning to offer employee benefits.
Key Feature: Provides immediate coverage without medical tests/screening.

Critical Illness Insurance: This is a lump-sum benefit plan that pays out when the beneficiary is diagnosed with a serious illness such as cancer, stroke, multiple sclerosis, paralysis, major organ transplant, kidney failure, or heart disease. The payout can be used for treatment, recovery, or even lifestyle adjustments.

Ideal for: Individuals with a family history of critical illness or who work in a high-stress environment.
When Should You Buy: People have a family history of any major illness.
Key Feature: One-time payout on diagnosis, irrespective of actual treatment expenses.

Maternity Insurance: It is a specially designed plan that provides coverage for medical expenses of pregnancy and childbirth. It pays for prenatal and post-natal expenses, medical termination of pregnancy, and newborn baby treatment. However, pregnancy health insurance plans come with a specific waiting period.

Ideal for: Couples planning to start a family
When Should You Buy: Women who are already pregnant or those planning their pregnancies, if you are a newly married couple
Key Feature: It offers one of the most significant healthcare expenses for young families.

Hospital Cash Insurance: This policy pays a daily cash allowance to the insured for up to a certain limit, apart from the hospitalisation costs. This amount is paid to cover day-to-day expenses for each day of hospitalization, like food charges, admission charges, etc.

Disease-Specific Insurance: Some specific diseases like diabetes, cancer, or kidney failure involve heavy treatment costs, which can drain all your savings. These plans have been tailored to address the unique healthcare needs of individuals suffering from different diseases.

Ideal for: Individuals already diagnosed with or at high risk of a specific illness.
When Should You Buy: Individuals who have been diagnosed with a lifestyle disease.
Key Feature: Targeted coverage with specialised care options.

Personal Accident Insurance: This policy offers financial protection in the event of accidental death, disability, or injury. It helps individuals to manage sudden expenses due to unforeseen accidents.

Ideal for: Frequent travellers or people with high-risk professions.
When Should You Buy: Individuals working in risky occupation
Key Feature: Lump-sum payout for accidental injuries and disabilities

Importance of Health Insurance with An Example

It is a relief Priya’s health insurance covered her 3-lakh emergency appendicitis surgery! Cashless hospitalization allowed her to focus on recovery, not finances. This shows the importance of having the right health insurance. A Health insurance premium calculator can help you find a policy that meets your budget and needs.

Summing Up

There are numerous types of Health Insurance policies in India. However, choosing the correct type of health insurance is more than just comparing premium amounts and waiting period- it is about understanding your current health situation, lifestyle habits, future needs, and financial capabilities. Additionally, purchase a Health Insurance policy when you are young as it offers several advantages.

Author Profile

Adam Regan: Deputy Editor

Features and account management. 3 years media experience. Previously covered features for online and print editions.

Email Adam@MarkMeets.com