Types of Mediclaim Policies and Their Working

There are various types of mediclaim plans available in the market. Such plans come with multiple features and benefits. You may explore all the possible options and may make a choice based on your needs and budgets.

Following are five major types of mediclaim plans and their working mechanism.

1. Hospitalization plans

   Such plans, also known as indemnity plans, offer coverage against hospitalization-related expenses. The insurance provider pays for various hospitalization costs such as room rent, doctor's fee, nursing charges, and cost of medicines, among others. There are two categories of hospitalization plans, namely individual plans and family floater plans. Individual plans offer coverage for a single individual whereas family floater policies cover various members of the family.
   

2. Hospital daily cash benefit policy

   Under a hospital daily cash benefit policy, the insurance provider pays a fixed amount for each day that you are hospitalized. This amount does not depend on the actual hospitalization expenses incurred. For example, assume your daily cash benefit is fixed at INR 2,000. This means that the insurer will pay an amount of INR 2,000 for each day that you are hospitalized, even if your hospitalization expenses are higher or lower than this amount.
   

3. Critical illness plans

   Critical illness policy, also known as dread disease plan, provides insurance coverage against specific illnesses on a pre-determined list of your insurance policy. This may include stroke, cancer, multiple sclerosis, and heart attack, among others. Upon diagnosis of any critical illness mentioned in the policy document, you are entitled to receive a lump sum amount. You may purchase a critical illness policy either as a standalone policy or as a rider.
   

4. Personal accident plans

   A personal accident mediclaim policy is a form of coverage that financially protects you in case of bodily injuries sustained due to an accident. This insurance plan provides coverage towards impairment, mutilation, or death. The sum-insured amount may be used to meet various financial obligations.
   

5. Cashless plans

   A cashless policy prevents the need to make out-of-pocket expenses towards hospitalization bills. The insurer settles all expenses with their network providers. In order to seek the benefits of a cashless facility, it is necessary to visit any of the providers in the insurer's network.

You may do your due diligence and compare the aforementioned types of health insurance plans. You may select the best insurance plan and have peace of mind against medical contingencies.