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The possibility of one undergoing some kind of expensive health treatment during the lifetime is much more than a sudden demise. Given the cost of treatment at private healthcare facilities, it's almost beyond reach for the Indian middle and lower income class to meet such expenses. Despite that, the penetration of health insurance in our country is extremely low. Only about 2% of the India's population is covered under medical insurance.
This is partly because of a lack of understanding of various products and the need for the same. There is a wide range of health products available in the market, each with its own advantages and drawbacks. Understanding them is important to make the right choice.
INDIVIDUAL HEALTH PLAN
The simplest form of health insurance is the individual mediclaim policies. It covers hospitalisation expenses for an individual for up to the sum assured limit. The insurance premium is dependent on the sum assured value. Unlike in the past, most plans now come with sub-limits for each of these heads.
Drawback: There are restrictions in terms of pre-existing ailments, out-patient treatments and other exclusions. There is a limit on maximum age at entry.FAMILY FLOATERS
These plans consist of shared Individual Health Plan. The benefits are mostly the same, but the sum insured can be used for the treatment of any or all members of the family and not a single person. This reduces the need for you to pay from your pocket. It comes at a lower premium. Drawback: Most family floaters have an upper age limit of 55 years or 60 years. Moreover, coverage of children under this policy will cease once they reach 25 years. Therefore, a family floater is more suitable for a young family.
CRITICAL ILLNESS
This is not a category in itself, but an addition to the individual or family floater health plan. In India, these plans are sold separately, this is a major flaw in the sales of health insurance. An illness plan provides financial assistance if the insured develops a serious ailment such as cancer or has a stroke.
Source: http://economictimes.indiatimes.com/
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