Five Important health insurance covers

Whether it is the recent tragedy that unfolded in Nepal or the catastrophe that shook Uttarakhand some time ago, or even if it was that minor car accident you were involved in yesterday. All of these instances go to show that disaster control is beyond your power once it has set in motion. It is however, in your hands to avoid any tricky and testing consequences of such tragedies which are often worse than the tragedy itself. Apart from emotional damage, such situations lead to a financial bearing on you too. You can contain the negative financial impact by buying adequate insurance before any such calamity strikes. This article will guide you towards a better understanding of the subject, thereby easing your insurance buying process.
To begin with, the fact that you have decided to read this article in order to understand the need for health insurance covers, is itself a start. The next step will be to recognize which are these five covers that you need.
1. Individual Health Insurance
This policy is the basic type of health insurance policy available in the market for - as the name suggests - an individual. This cover includes hospitalization and surgery expenses for an individual for up to the cover amount (sum assured). The premium you pay on such a policy is dependent on the cover amount.
2. Family Floater
You can also opt for what is known as a Family Floater or a Floater Plan. This cover considers an entire family as one unit. This plan compensates the basic sum insured for subsequent hospitalization due to new ailments or accident after the cover is exhausted in a policy year. The biggest advantage of a family floater policy is that its economically lower as compared to buying individual policy on each members name.
3. Top-up Insurance
It is often the case that employer provides for health insurance either for self / family including parents. Such coverage is generally for a minimum amount as the current trend is employers do not want to get deep into health insurance for employees as the premium cost is steeply increasing year on year. Further when you choose to change jobs there could be a break in insurance and any health contingency can arise during the interim period. So it is always advisable to have personal protection even if alternative cover is available. Top-up covers are available in the market and they come at very affordable premium because of the deductible. This would mean that for the first X amount (called the deductible) the policy will not pay. Thereafter claim can be made upto the sum insured. It is cost effective yet gives wider protection.
4. Unit Linked Health Plan
Unit Linked Insurance Plans are a unique offering. These plans allow you the chance of availing market linked returns while providing life insurance protection. You have the option of choosing from host of funds having varied degree of risk exposure, depending on your risk appetite. A lot of people tend to opt for this alternative considering the fact that this is a unique and appealing alternative to others.
5. Critical Illness Policy
A critical illness plan pays a lump sum on diagnosis of serious ailments as outlined in your policy document. The lump sum is eligible to be used for expensive treatments or recuperation aids, make up for loss of income due to fall in the ability to earn or pay off debts.
6. Personal Accident Policy or Pure Term Life Policy
This policy offers compensation in case of death or bodily injury to the insured person, directly and solely as a result of an accident, by external, visible and violent means. Different coverages are available ranging from a restricted cover of Death only, to a comprehensive cover covering death, permanent disablements and temporary total disablements. Group personal accident policies are also available for specified groups with a discount in premium depending upon the size of the group.
Alternatively one can also take Pure Term life policies which are becoming popular now. Pure Term Life policies are sold by Life insurance companies and they cover only Death either natural or by way of accident. This is ideal for financial security of the family should anything happen to you.
All of these insurance covers can either be bought online or through an insurance agent. The online medium is built on a cost-effective model; hence the price range of products offered across the web is on the lower end. Moreover, the fact that online insurance negates the existence of intermediaries also makes it a very lucrative option. Buying insurance through an agent would mean paying him a commission, which is a part of the premium that you, the consumer pay.
Different types of insurance policies have are designed by different insurance companies. They feature varied benefits as per the kind of illness covered. It is advisable that you conduct appropriate research before zeroing in on a policy so as to be able to make optimum use of your investments.