These are costly times, with hospitals offering medical care like never before. However, while facilities are getting better, the cost of health care is also rising rapidly. If under any unfortunate circumstance you or your loved ones are hospitalized, you would want to ensure that you are financially prepared to deal with that situation.
A health insurance plan can help you be ready for any eventuality. It acts as protection against the risk of incurring high medical expenses. In times of need, the insurance plan would pay for your medical or surgical expenses. The amount incurred is either paid directly to the hospital through cashless transactions or reimbursed after a claim. This can provide you with a sense of safety and security since unforeseen medical emergencies can be met without any hassle or stress.
The health insurance plan you take should fulfil all your needs and ease all your worries. Depending on your demands and preferences, you can choose between the following three types of health insurance covers:
Individual health insurance
The simplest option is sometimes the best. The individual health insurance policy [SN1] too is believed by many to be the best available option.
This plan is designed to insure an individual against illnesses and ensuing medical expenses. It covers hospitalization and surgical expenses till the cover limit is reached. This cover limit is the sum assured by your insurer.
Like all insurance plans, you have to pay a certain amount as premium to buy this health cover. The premium amount is directly related to the size of the policy cover; if you want a larger limit, you must pay higher premiums.
Family floater plans
If you want to buy health insurance for your whole family, you should opt for a Family Floater plan. Unlike Individual Health Insurance, the Family Floater plan gives you a single insurance cover for your entire family so anybody in your family can claim in case of hospitalization or surgical expenses. More than one family member too can simultaneously avail the benefits of the Family Floater health insurance plan.
Just like the individual plan, you have to pay a premium for the Family Floater plan. Of course, only one of the family members has to pay. Also, just like you often avail a discount by buying goods in bulk, the Family Floater plan turns out to be cheaper than individual policies.
Unit Linked Health Plan
If you can mix your life insurance and investments, why not do the same for health insurance?
Similar to Unit-Linked Insurance Plans (ULIPs)[SN2] , Unit-Linked Health Plans (ULHPs) offer a mix of investment and insurance. A part of your premium is invested while the remaining is used to buy health cover. Your health insurance cover thus helps you earn a return while also providing you a safety net.
This return could help you pay for your medical expenses, over and above the health cover limit. After all, with the ever-rising cost of health care facilities, savings too can fall short. It is always better to have more money at your disposal.
All the returns you earn through the ULHP will be paid to you at the end of the policy term. That said, you must note that the returns you receive are based on market performance and subject to market risks; UHLPs do not assure a set amount.
Remember, a health insurance plan helps you lessen the financial risks that arise from unexpected health issues. Choosing the right policy is thus the key to a secure future for you and your family.