Explain the different types of health insurance policies



Having health insurance is imperative in today’s day to deal with the exponential rise of medical expenses. Here is a short brief about the different health insurance plans that you can choose for yourself and your family.


Health insurance is a way to mitigate the risks of facing financial constraint during the times of health crisis. Knowing the right procedure and understanding your requirement can help you get the right health coverage in case of hospitalisation or treating any illness. Here is a rundown of the different types of health insurance policies that one can consider according to the needs.

Types of health insurance plans

  • Indemnity plans
  • Defined- benefit plan

Indemnity plans:

Indemnity plans give you coverage for hospitalisation expenses upto the assured limit. These indemnity plans include types of health insurance policies:


  • Medical Insurance


Medical insurance is also known as Mediclaim policy that covers the hospitalisation expenses. These expenses include the in-patient charges such as room rent charges, doctor’s and nurse’s fee, surgery charges and other medicine charges. The medical insurance is available as group Mediclaim or individual medical insurance etc.


  • Individual insurance


Under this insurance plan, an individual can receive coverage for hospitalisation up to the assured amount. The members covered under individual insurance can claim the assured amount individually.


  • Family Floater Plan


The family floater plans come for the entire family where it includes all the members of the family in a single plan. Each member of the family gets equal coverage from the insured amount. The premium amount for the Family Floater Plan is far less than the individual insurance and Mediclaim policies.


  • Group Mediclaim plans


Group medical insurance plans are gaining popularity among the medium or large scale enterprises to increase employee retention. Employers provide health insurance coverage to their employees with group medical plans.


  • Unit linked health plans


Unit linked health plans, or ULIPs ( Unit linked health insurance plans) allow you to grow your money in the form of investment and also secure you during a health crisis. A part of the premium paid towards the assured sum is deployed in different asset classes while the other part is for health insurance cover. The returns on the investment depend upon the market volatility.

Definite- Benefit Plans

On detection of any illness when the insured gets lump -sum amount as compensation, then such plans are known as Definite – Benefit plans. Definite benefit plans include other plans such as

  • Critical illness plan

Treating major illness such as cancer, organ transplant, heart attack, Kidney failure, paralysis, etc. is an expensive affair. Having critical illness plans helps to recover the costs of treating these illnesses irrespective to hospitalisation charges. The family gets the entire insured amount on detection of any major disease as listed in the policy.


  • Personal Accident Plan


In case of any major accident, the family of the driver or the owner gets a lump sum amount. The lump-sum amount is given when there is a loss of income due to death or major injury.


  • Hospitalisation plan


This coverage is also included in different health plans. Other than the hospitalisation charges, the insured gets a daily cash amount to a certain limit.

The soaring medical costs make it compulsory for all to have health insurance family for you and your family. However, be mindful of the plan that you choose so that it covers your needs in time of urgency.