Health Insurance

TYPES OF HEALTH INSURANCE PLANS
HOSPITALIZATION PLANS:
Hospitalization plans reimburse the hospitalization and medical costs of the insured subject to the sum insured. For this reason, the plans are also known as indemnity plans.

The sum assured can be fixed -
For a member of the family in case of individual health policies or
For a family as a whole in case of a family health insurance policy
For instance, consider a three-member family with an individual cover of Rs. 2 lakh each. Each member can claim reimbursement for a maximum of Rs. 2 lakh as all three policies are independent.

If the family applies for a family health plan cover of Rs. 6 lakhs, then any family member can claim medical benefit for more than Rs. 2 lakh so long as it is within the overall sum assured of Rs. 6 lakhs.

HOSPITAL DAILY CASH BENEFIT PLANS:
A hospital cash plan pays you a specific prefixed amount for each day you are hospitalized. The number of days for which this benefit is paid is typically capped. This plan is useful to cover ancillary costs (medical and non-medical) that are not covered under health insurance plan and to provide for loss of income during hospitalization ( for self employed ). While deciding this plan you need to look into Daily cash limit, Number of days of coverage in a policy year and eligibility (or pre-conditions) for claiming the benefit.

CRITICAL ILLNESS PLANS:
These are benefit-based health insurance plans which pay a lumpsum amount on diagnosis of predefined critical illnesses and medical procedures. The illnesses are specified at the outset. By nature, critical illnesses are high severity and low frequency and cost of treatment is higher compared to regular medical problems like heart attack, stroke, among others.