pays for your hospital bills for diagnostics, surgery etc.
Health insurance offered by different companies may vary slightly at certain levels but first it is important to make the choice as to what kind fits your requirements.
When we decide to buy a private Health Insurance the first few issues we have to confront are, “for whom do we need health insurance”, “how much health insurance will be enough” and “about how much can I afford to spend on it.” Instead of answering these questions first and then look for insurance you can even take the way round.
Know what is available, see what they offer and then take decision. There are numerous options at hand to choose from.
The first choice to be made is between health insurance Policy for family or separate health plan for everyone.
In a Family Floater, you decide for a sum Assured for the family. That sum is available to all Insured under the floater policy. It can be used by either or all the members insured up to the given sum insured. Premium depends upon the number of family members insured. A family floater can be taken for self and spouse, self, spouse and kids, self and kids and spouse and kids. Most companies don’t allow parents to be included.
Individual health insurance is, as the name suggests, taken for single individual. It can be bought for each family member separately. The sum insured in this case is available for the single person insured. Premium depends upon the age of the individual and sum insured. Each policy needs to be managed as a separate policy.
Besides these two basic types, there are specialized health insurance policies. These can be availed as Riders to the main health policy or can be taken as individual policies. They are taken to cover a limited risk rather than general health.
A Critical Illness policy or rider covers specific illnesses like heart attack, paralysis, certain types of cancer, major organ transplants and similar other life changing illnesses. The cover is provided for the illnesses listed in the policy document only.
Personal accident insurance covers risk arising from accidents, be it at home, or outside. It is a tool to protect your family and yourself from the financial concerns such as loss of income and medical expenses due to accidents. It also covers the loss of income in case of temporary or permanent disablement. Accident may include plane crash, train accident, murder, hit-and-run etc. It is taken as a separate policy.
It can be taken as a standalone policy though accidental death or dismemberment cover can be a rider to life insurance as well
Personal Accidental policy covers accidental death and loss of limbs, permanent total and partial disablement
It compensates for permanent or temporary loss of income due to accidents
Hospital cash policy offers a fixed amount of cash per day of Hospitalization for a fixed maximum number of days. Though it can be taken as a standalone policy, it works best as add on to a regular health or critical illness policy.
Once you know about these various types of health insurance available, it will be easier to identify your requirements and make better choice.