Health insurance is an agreement between an insurance provider and an individual wherein the former guarantees to take care of certain medical costs of the latter based on the investment made. Some plans offer health insurance for individuals while others offer health insurance for family and group.
Individual health insurance plans are designed to cover the policyholder against various illnesses with cashless hospitalization and numerous other add-on features. Under this policy, the entire sum insured covers only one individual.
Family Health Insurance
A family health plan is a type of health insurance, which covers more than one member of a family for a fixed sum assured in exchange for a single annual premium. Such a policy provides assured coverage to two or more members of a family at the same time, in case they get hospitalized or an ailment is diagnosed. A family health plan is recommended to a family with a good medical history.
A family health plan generally covers a family (you and your spouse along with up to 4 children) while some allow you to include your parents in your existing health insurance policy. You might also be allowed to include your in-laws (extended family members) in your existing family floater health insurance policy at a cost of additional premium.
Group Plan Health Insurance
A Group Health Insurance Policy is a type of health insurance plan that covers for a group of people who work under the same organization. This is often offered as a valuable benefit for employees as the premium for the same is borne by the employer.
However, the price for the same is comparatively a lot lesser as compared to individual health insurance plans and also benefits employers in tax reductions, therefore making it beneficial for both the employer and employee.
Top Up Plan
A top-up plan is a regular health insurance policy that covers hospitalisation costs but only after a threshold limit, known as deductible, is crossed.
A deductible is that portion of the claim amount that is not covered by the insurer and has to be paid by the policyholder before the benefits of the top-up policy can kick in.