There are multiple types of health insurance policies available to provide for the various health related expenses incurred by individuals. However, by buyer eligibility we can divide all plans into three broad classes:
- Group Health Insurance
- Personal Health`
- Family Floater
Although, features and types of expenses covered are different in both the policies Individual health cover is further classified into five different heads:
A Case of Health & Critical Insurance Use in Real Life
Shivangi is 24 years old and had joined a reputed organization as a Business Analyst five months ago. She is not married, her parents are well settled, and thus she can think of spending her entire income the way she wishes.
With high hopes for the future, her motivation, and energy remains quite high. She attended a presentation on the need for insurance, where the presenter asked the following two questions to the audience:
Well, she did not like the answer to the above questions much but, none the less, she tried to think. She figured she did not need a life insurance since she did not have any dependents, but health insurance was something else.
She has not saved enough yet, that if she is hospitalized tomorrow, she will be able to afford the costs. She might even have to seek financial help from her parents. Her more senior colleague Rajesh held a similar thought, “any sudden hospitalization, surgery or critical illness could derail the economic equation for his entire family.”
A health insurance plan, but as explained in the presentation, not every plan may contain the specific benefits needed by the individual. So, Shivangi and Rajesh both prepare a list of expenses they need their insurer to provide for:
Their next decision was to determine an amount that should be sufficient for them to cover all the desired costs; i.e. Sum Assured for the policy. As the insurance presenter had explained, the premium they will have to shell out will depend on their age and Sum Assured chosen by them.
Considering the current cost of hospitalization Shivangi concluded that a cover of Rs. 500,000 will suffice for her, at least for next five to six years, and wondered whether she would be able to increase it later. While Rajesh, decided for a higher amount of Rs. 10,00,000 considering the two more family members. The premium slightly increased after adding riders for critical illness and other benefits.
In the end, both Shivangi and Rajesh had a feeling of security, knowing that they will not have to ask for money or spoil their investments if they are admitted to the hospital or go for surgery.