Health insurance plans, commonly known as mediclaim policies, are today one of the most popular policies for a good reason. Health insurance provides cover to your medical expenses if the insured (individual) is hospitalised for more than 24 hours. The expenses normally covered are cost of operation, nursing and doctors fees, diagnostic tests, room charges as well as pre and post hospitalisation expenses. Health insurance is normally a 1 year/2 year contract and needs to be renewed every time.
Individual Health Insurance: It covers the medical expenses (up to sum assured) incurred by individual if he is hospitalised. For eg: if an individual has a mediclaim policy of Rs 2 lakhs and he incurs hospital expenses of Rs 1 lakhs, the complete amount will be refunded by insurance company, up to maximum of Rs 2 lakhs.
Family Floater Policy: Family floater policies are designed where head of the family member takes the policy, and it includes spouse and dependent children as family members. The policies provide the flexibility to utilize the total sum assured by any/or all the members of the family during the year. The premium for family floater plans is typically less than that for separate insurance cover for each family member.
Critical Health Insurance: In this policy, the policy holder receives a lumpsum amount if he is diagnosed one of the critical illnesses (cancer, heart attack, etc) as mentioned in the policy. The amount is paid irrespective of the policy holder going for treatment or not.
To conclude, every individual should consider the situation holistically before buying any insurance policy. Instead of randomly selecting insurance policies, based on his agents or neighbour’s advice, one should understand the terms and condition of every policy and choose the one which suits his profile and need. And lastly, every individual should secure himself completely for both life and health before taking the next financial decision.
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