To avoid the financial burden of escalating healthcare costs, investing in health insurance is a wise decision. It allows you to proactively prepare for medical emergencies, securing access to necessary treatment without worrying about expenses. With a range of plans available, finding the best fit for your individual or family needs is essential.
What is the list of different types of health insurance plans in India?
Types of Health Insurance |
Suitable For |
Individual Health Insurance |
For a single person |
Family Health Insurance |
To cover families (self, spouse, children, and parents) and couples |
Senior Citizen Health Insurance |
For elderly people aged 60 years and above |
Critical Illness Insurance |
To cover the treatment of critical illnesses |
Maternity Insurance |
For pregnant women and women planning a pregnancy |
Top-up Health Insurance |
When the base health policy's coverage limit is exhausted/ If the base health policy has expired |
Personal Accident Insurance |
To cover accident death and disabilities |
Mediclaim Insurance |
To cover in-patient hospitalization expenses |
Hospital Cash Insurance |
To cover day-to-day ancillary expenses during hospitalization |
Disease-Specific Health Insurance |
For people suffering from diseases like cancer, diabetes, COVID-19, etc. |
Different types of health insurance plans
Here are the different types of health insurance policies available in India.
Individual health insurance
Individual health insurance is designed to cover just one person. This means that the policyholder is the only one who can use the insurance for medical and hospital expenses, up to the policy's limit.
If you want coverage for more than one family member, each person needs their own individual policy. This way, each person has their own separate coverage limit. For example, if you and your spouse each have an individual health plan with a ₹1 lakh limit, you each have up to ₹1 lakh in coverage that you can use independently.
When to purchase?
Consider buying an individual plan if:
- You're unmarried.
- You're over 45 or 50 years old.
- You have a pre-existing medical condition.
- You need coverage beyond just hospitalization costs.
Family health insurance
In a family health insurance policy, the chosen sum assured applies to all family members covered under a single plan. This means one plan for all members. The sum insured gets divided among all the members insured under the plan.
Family health insurance covers your whole family under one policy. This means everyone shares the same coverage amount. A big plus is that it's usually cheaper than getting individual plans for everyone.
When to Purchase?
- If you are a newly married couple
- If you have a nuclear family with young children
Group/employee health insurance
Group health insurance provides affordable healthcare coverage for employees or members of an organization. By covering a large group, it offers lower premiums and financial protection against unexpected medical expenses. This makes it a valuable benefit for both employers and employees, fostering a healthier and more secure workforce.
When to Purchase?
- When starting a new job
- When your family status changes
- During annual open enrollment
- If you become eligible for Medicare=
- When leaving your job
Senior citizens health insurance
Health insurance plans for senior citizens cover individuals above 60 years of age. Senior citizen health insurance caters to all medical-related expenses at that age. You may need to undergo a medical check-up before you buy the plan, as senior citizens usually develop several age-related health conditions. These health insurance policies usually come with higher premiums.
When to purchase?
- As you approach retirement
- When you turn 60
- If you have pre-existing conditions
- When your health changes
- If you're no longer covered by an employer's plan
Critical illness health insurance
Critical illness insurance offers a financial safety net in the face of life-threatening or serious health conditions. This specialized coverage provides a lump-sum payment upon diagnosis of a covered illness, such as cancer, heart attack, stroke, kidney failure, and more. You can purchase it as a standalone policy or as an add-on to your existing health insurance. This payout can be crucial in covering expensive treatments, managing lifestyle changes, and alleviating financial burdens during a challenging time.
When to purchase?
- When you are young and healthy.
- If you have a family history of critical illnesses.
- When you have dependents or significant financial responsibilities.
- If your employer's health insurance has limited coverage for critical illnesses.
- When you want to focus on recovery without financial worries.
Top-up health insurance
Top-up health insurance plan lets you scale up your insurance coverage at an affordable cost. This plan covers expenditures that are over and above the coverage of your regular health insurance policy.
When to purchase?
- When your existing coverage is insufficient
- Rising healthcare costs
- Family history of critical illnesses
- Limited savings
- To avoid dipping into savings
Personal accident insurance
Personal accident insurance provides a financial safety net in case of accidental death or disability. It offers a lump sum payment to help cover lost income or expenses related to the accident. This ensures you and your loved ones are financially protected during a difficult time
When to Purchase?
- If you have a high-risk job.
- Frequent travelers
- Sole breadwinner for your family
- Limited savings or high financial obligations
Maternity Insurance
Mediclaim insurance offers financial protection against hospitalization expenses. It covers costs associated with in-patient treatment, including room charges, doctor fees, surgery, and medications. This type of insurance provides a safety net, ensuring you can access quality healthcare without worrying about hefty medical bills. It's a crucial component of financial planning, safeguarding your savings and providing peace of mind during medical emergencies.
When to Purchase?
- When you prefer flexibility in choosing doctors and hospitals.
- If you want a straightforward, reimbursement-based approach to health insurance.
- When you have a good understanding of your healthcare needs and expenses.
- If you are comfortable managing medical bills and submitting claims.
- When you want a basic, cost-effective health insurance option.
Indemnity health insurance
Indemnity health insurance reimburses the exact amount to the policyholder for the medical expenses incurred. These policies do not offer any additional benefits, such as the waiver of premiums in case of a critical illness.
Defined-benefit plan
Defined-benefit plan policies offer a predefined amount of coverage for specific medical expenses. For instance, the policy will offer a fixed amount of coverage for each day of hospitalisation, irrespective of the actual expenses incurred by the policyholder.
