India is a land of diverse people. Like its people, the country also needs different types of health insurance policies to cater to its various needs. With rising inflation and healthcare costs, having a good health insurance policy ensures you get the best treatment if you’re ever hospitalised!
A health insurance policy is a financial instrument that helps you reduce the burden of medical expenditure. During hospitalisation, the insurance company will cover your bills for a premium paid every year.
Consider it a safety net for your current medical needs and future unexpected medical expenditures—say, an emergency open-heart surgery or a bone marrow transplant—a black swan event, if you will.
Whether looking for individual coverage, a plan for your entire family, or coverage for critical illnesses, understanding the different types of health insurance policies available can help you make an informed decision.
Heads Up: It takes an average person up to 5 hours to read & analyze a policy, and 10 hours or more to compare different plans and make a decision.
This is why we propose a better alternative - taking a 30-minute FREE consultation with Ditto’s certified advisors. We have a spam-free guarantee, and we’ll never push you to buy a plan. Don’t delay this - we have limited slots every day, so book a quick call here before they run out.
What are the Different Types of Health Insurance Policies?
So, here's something you need to remember - health insurance plans are crafted to cater to your diverse health conditions and financial bandwidth. Accordingly, health insurers offer several types of health insurance policies - Here are some of the most common types of policies in India.
Top 5 Types of Health Insurance Plans in India
- Individual Health Insurance
Individual Health Insurance is one of the most popular types of insurance policies in India. This type of policy covers only one individual policyholder. Here are some of the best health insurance policies in India.
Best Individual Health Plans in India: Care Supreme, Niva Bupa ReAssure 2.0, Optima Secure, Aditya Birla Activ One
- Family Floater Health Insurance
Unlike individual health insurance policies, family floater policies offer coverage to your immediate family – yourself, your spouse and dependent children. Sometimes, you can also add your parents and in-laws to your family floater policy. But beware that the premiums are calculated based on the oldest member covered. So you’re probably better off taking a separate policy for your parents.
Although this is not the case with all policies, it is also worth noting that if you want maternity coverage, you must purchase a family floater more often than not.
Top family floater policies in 2024: Aditya Birla Activ One, Bajaj Allianz Health Guard, Care Supreme, Optima Secure, Aditya Birla Activ Fit Preferred
- Group Health Insurance
Group health insurance plans are usually offered by employers to their employees for their well-being. But there are other cases where it is offered, too. If you're part of a club, or the customer of a certain company, or an alumnus of a reputed institute, you’re probably offered a group insurance policy.
In these policies, the organisation offering the policy is the master holder, and you are the beneficiary. One major disadvantage here is that you cannot customise these plans. What you get is what you take, but they offer comparatively low premiums.
- Super Top Ups and Top Ups
Sometimes, the coverage offered by a normal health insurance policy may not be enough. Top-ups and super top-ups offer additional protection at a lower premium. These policies may not be as comprehensive as a full-fledged health insurance policy, but the coverage amount is usually very high.
These policies also come with deductibles – the higher the deductible, the lower the premium. This is also the primary difference between a top-up and a super top-up – in top-ups, you need to pay the deductible every time you make a claim, whereas, in super top-ups, you need to pay the deductible only once per policy year.
Fun fact: You can use a different insurance policy to pay the deductible, so it does not need to be cash only.
Best Super Top-Ups in 2024: HDFC ERGO MyHealth Medisure, TATA AIG Medicare Plus STU, ICICI Lombard Health Booster STU
- Critical Illness Health Insurance
Unlike traditional health insurance policies, where you have to be admitted to a hospital and treated to claim insurance, critical illness policies offer a payout on the diagnosis of a critical illness itself. Depending on the policy, the payout can either be lumpsum or on an instalment basis.
This is the only instance where you don’t need to present a bill to your insurer to claim insurance, which is why these policies are also called non-indemnity policies.
Top critical illness policies in 2024: HDFC ERGO Critical Illness Platinum, Care Critical MediClaim, Aditya Birla Activ Secure
Other Types of Health Insurance Policies in India
- Mediclaim Policies
Mediclaim policies are a type of health insurance that primarily focuses on covering expenses incurred during hospitalisation. These policies reimburse the policyholder only for medical expenses they incurred during their stay in the hospital due to illness, injury, or surgery.
Unlike critical illness policies that pay out a lump sum upon diagnosis, mediclaim policies cover the actual medical expenses incurred, subject to policy terms and limits.
- Senior citizens' Health Insurance
These plans are designed specifically for elderly people over 65 because, once you cross this age limit, the number of policies you are eligible for starts dwindling to single digits. Additional tax benefits are also available to senior citizens under section 80D.
However, you should also note that you may develop certain ailments and conditions that the insurer may not cover as you age. If you are hospitalised because of this, the insurer may reject your claim. This is why purchasing a good health insurance policy as soon as possible is recommended.
Apart from this, if you apply to a policy after a certain age, you may have to agree to a co-payment or a loading charge. They may not offer you a policy without this because of the higher risk that you pose.
Here are some of the top policies for senior citizens: Aditya Birla Activ One, Care Plus, Care Supreme, Niva Bupa Health Companion
- Maternity Health Insurance
As the name suggests, maternity health insurance covers maternity-related expenses—prenatal care, childbirth, and postnatal care. Maternity coverage is usually accompanied by a long waiting period and a strict sub-limit. However, if the newborn develops certain internal congenital disorders, the insurance company will cover them. In some cases, the insurer will also cover the newborn's vaccination charges.
Note: Always compare the policies with and without maternity coverage to ensure the premium increase is justified.
Top health insurance policies with maternity cover: Care Joy, Niva Bupa Aspire, Aditya Birla Activ Fit Preferred
Which type of Policy should you opt for?
At the end of the day, the policy you choose depends on three main factors: your needs, your budget, and whether you are eligible for it.
The policies you are eligible for mainly depend on your age, pre-existing diseases, and your budget.
Before finalising a policy, you should always compare and check whether you’re getting the best policy for your needs.
As a rule of thumb, remember that having co-payments, disease-wise sub-limits, and room rent restrictions are a big no. Although we understand that in some cases, it may not be possible to get a policy without these restrictions, if your policy has any of these, you may want to reconsider. Feel free to review the Health Insurance 101 article for more details on what should and shouldn’t be in a policy.
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Conclusion
Choosing the right health insurance policy ensures comprehensive coverage and financial security. Various policies are available, from individual and family floater plans to critical illness/non-indemnity policies, so it’s essential to assess your specific needs and compare the features and benefits of each type.
When finalising your decision, consider co-payments, disease-wise sub-limits, and room rent restrictions. By understanding the different types of health insurance policies in India, you can secure the best protection for your health and finances.
If you need personalised, spam-free advice from IRDAI-certified insurance experts, you can always book a call with Ditto Insurance :)
