The rapidly changing lifestyle and environmental conditions significantly contribute to adverse health conditions. With a continuous rise in healthcare expenses, it becomes immensely challenging to cover out-of-pocket costs, especially during emergencies. In such scenarios, a mediclaim policy plan shields you from the worries of paying for healthcare services.
This blog highlights some of the common terminologies and types of health insurance plans. If you are new to health insurance, read on to learn about the basics, their benefits, and some helpful tips for picking the right plan.
Common Terminologies Related to Health Insurance
To get a clear idea of how health insurance works, first, it is essential to understand some common terminologies related to it. These have been listed below:
Terms |
Descriptions |
| Premiums | This term refers to the amount that you need to pay at regular intervals to keep your insurance plan active. Usually, you need to pay them monthly. The premium depends on various factors such as age, coverage type, and location. So, make sure to choose the premium based on your budget so that it covers your medical expenses without putting a strain on your savings. |
| Deductibles | A deductible is the amount that you will have to pay from your pocket for the services covered before your insurance starts to pay. For example, if your health insurance plan has a deductible of ₹40,000, you will have to pay that amount out-of-pocket for your medical expenses before the health insurance plan starts providing coverage. |
| Coinsurance | This refers to the percentage of costs that you share with your insurer once the deductible amount is crossed. For example, if your total medical expense is ₹1,00,000, the deductible is ₹40000, and the coinsurance is 20%, you will have to pay 20% of the remaining amount (i.e., ₹12,000), and the insurer will cover the rest. |
| Out-of-pocket maximums | This term refers to the maximum amount that you must pay for the benefits included before it offers comprehensive financial protection for the remaining plan year. It generally includes copayments, deductibles, and coinsurance payments. However, the premium is not included under out-of-pocket maximums. |
| Copayments | Also known as copays, copayments are a definite percentage of the claim amount that you will need to pay for various services at the time of your treatment. It usually applies when accessing healthcare services like specialist consultations, doctor visits, emergency room visits, and prescription medications. |
In addition to the basic terms, having a clear idea of the types of health insurance, including comprehensive health insurance, is essential to selecting the right plan for yourself and your family.
Types of Health Insurance Plans
In the present-day world, health insurance needs tend to differ across individuals. Hence, to cater to individualized needs, insurers have introduced various types of health insurance plans. These include:
- Individual Health Insurance
- Senior Citizen Health Insurance
- Family Floater Health Insurance
- Critical Illness Plan
- Group Medical Insurance
- Top-Up Plan
- Disease-Specific Health Insurance
- Maternity Health Insurance Plan
- Hospital Cash
- Mediclaim Insurance Plan
- Indemnity Health Insurance
Once you understand and choose the right plan, you can get the maximum benefits out of your investments toward insurance premiums.
Benefits of a Health Insurance Plan
There are several advantages of a health insurance plan that you can reap upon purchasing one. These include:
- Ensures financial protection during medical emergencies.
- Offers access to the best medical facilities without worrying about finances.
- It prevents you from dipping into your savings during medical emergencies.
- Makes it easier for you to manage your treatment expenses for lifestyle disorders.
- Allows you to claim tax benefits as per Section 80D of the Income Tax Act, 1961
- Helps you arrange finances if your current health insurance plan seems inadequate.
Upon having cleared the basics of your health insurance plan, you can move forward to picking the right plan at your convenience.
4 Tips to Pick the Right Health Insurance Plan
Here are some expert-approved tips that will help you choose the right insurance plans based on your finances and healthcare needs:
- Check the Categories of Plans: Decide the category of insurance that you want to purchase from the available options.
- Calculate the Total Cost of Plans: Check the total amount that you will have to pay, including the premium, deductibles, and copayment (if applicable).
- Check the Network Hospitals: Check if the preferred hospitals in your area fall under the insurer’s network.
- Read the Description of the Plan: Go through the plan details thoroughly to ensure that you understand all the terms, conditions, and cost details before purchasing.
The ever-increasing healthcare expenses have made it an absolute necessity to purchase a health insurance policy. So, once you have a basic idea of health insurance, its types, and benefits, embark on your journey to purchase the best plan for yourself or your family.
For comprehensive coverage, including cashless treatment across 14,000+ network hospitals, choose the Super Star plan starting at just ₹13/day.
Call us now for a personalized quote!
