A Comparison of Health Insurance Options for Different Age Brackets

Sep 03, 2018 | 2 months ago | Read Time: 4 minutes | By iKnowledge Team

Buying the right health insurance policy is very important in these times of high medical inflation. With rising medical costs and unhealthy lifestyles, health insurance has an even more vital role to play. 

But which insurance policy is the right one for you? Depending on your age, the policy you choose differs. At times, investing in an individual policy is the most beneficial, and at times, a floater is the best option. Aegon’s Life iTerm Plus plan provides the benefit of life insurance with health cover for 10 different critical illnesses in the Life + Health plan. This combination of life insurance and health insurance provides the best of both worlds to the policyholder. In case of survival, the term insurance won’t provide anything, but in case of death, both benefits accrue to the family providing an added safety net.

Health Insurance & Your Needs

Image source: Economic Times

A discussion about health insurance is incomplete without knowing the different types of health insurance.

There are three types of Health Insurance policies:

Individual Health Insurance: This option covers an individual against illnesses and medical expenses. These expenses are covered until the sum assured is reached. Having riders for accidental death and critical illness is possible. Some plans have a decided daily cash payout for hospitalization.

Family Floater: This has all the benefits of an individual plan, but it is for the entire family. All family members can claim from the policy in case of hospitalization, up to the sum assured limit. 

Unit Linked Health Plan: This is similar to a ULIP. Under this, a part of the premium is invested while the rest acts as insurance. Whatever return is earned on the Health Plan is paid out when the policy matures.

Here is a great article from Aegon Life about different types of Health Insurance.

Let us consider the best policy depending on age.

Example 1:

Amit is 25, unmarried, and working in an MNC. He has no health coverage via his employer at the moment. Since Amit does not have any family obligations currently, it is best for him to invest in an individual health cover.

The sum assured for the health insurance depends on where the policyholder stays. A coverage of Rs. 3 to 4 lakhs is enough in a non-metro city, whereas, it is better to have a coverage of Rs. 5 lakhs and above in metro cities. It is also beneficial to take an accidental death rider in case of an unforeseen accident.

Avearage Hospitalization Cost

Image source: The Mint

Example 2:

Amit’s sister, Neha, is newly married. For her, it is recommended to buy a family floater plan as the cover is available to both Neha and her husband. In case of any medical emergency, their combined cover can take care of expenses. Also, family floaters have a higher sum assured as compared to individual plans. Another benefit of family floaters is that the premium is cheaper than that with two regular policies.

Example 3:

Anisha is married and has two young children. Since family floater policies provide coverage for an individual, the spouse, and children, one policy will cover all of them. The family floater will be economical as compared to buying individual policies and will provide a higher cover for higher premiums.

Example 4:

Satyen is 60 and has two grown-up children. For him, it is beneficial to take a family floater for the couple and individual policies for the children. Most family floaters stop when someone from the family reaches a predetermined age, with most insurers, it is 65 years. But, if you choose an insurer with a lifelong renewal policy, that will ensure the policy can be renewed without problems.

Family Floater or Individual Health Insurance Plan

Image source: Economic Times

Example 5:

Rajesh is 75 and a widower. He lives alone. For him, investing in a health insurance policy is important because he is old and is susceptible to health problems. But he should be careful while selecting plans because most senior citizen plans have a lot of caveats and restrictions. For senior citizens who have floater policies that lapsed, it is better to get individual policies with lifelong renewal. Having an insurance policy is better than not having any policy at all, to prevent all retirement savings getting drained off because of unexpected health problems.

The importance of a health cover is not to be underestimated. Investing in a health insurance policy which is adequate for your needs is the best way of saving your investments from being diverted towards health. Click to invest in a health plan if you haven’t already done it.

Advt. no.: II/Jul 2018/4233


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