What are the Different Types of Health Insurance plans!

What are the Different Types of Health Insurance plans!

Health insurance is a contract between the insurance company and the person who is applying for this policy. It is a kind of protection that takes care of your medical-related expenses. Health insurance is an insurance product that covers your medical and surgical expenses. It either reimburses the expense that has occurred due to illness or some accident or pays the hospital directly. In this article, we will see the various types of health insurance plans, why we need them, and their benefits. So, let’s start!


Why do we need health insurance?

Nowadays in America, health care costs have increased by many folds. Due to irregular eating and an unhealthy lifestyle, there is a rise in health-related issues. The higher cost of medication could leave any family bankrupt. And this is the case with many American families. So it is better for us to take health insurance cover.

Read Also: What is Critical Illness Insurance and How it Works?

It will protect our hard-earned money and also it will boost our confidence to live life to the fullest. There are different types of health insurance policies and you should compare each of the policies before buying one. Some of the health insurance providing companies in the USA are United Health, Kaiser Foundation, etc.


The many types of health insurance plans:

Insurance companies have different types of health insurance plans that will suit your needs. Let us know some types of health insurance plans that are usually taken by an individual. Buying health insurance may seem like a wastage of money when you don’t have any health issues. But it will really come handy when you actually fall ill. Then when your hard-earned money starts to finish you will regret your decision. So prevention is better than cure. It is better to take precautions at an early stage of your life so that you don’t face any trouble when you grow old.

Also read: Factors to Consider before buying a Critical Illness Cover

Now let us discuss the various types of health insurance.


#1: Individual Health Insurance Plan

An individual health insurance plan is a type of insurance plan that covers the health-related expenses of an individual who is insured. In this policy, you will get coverage in case of surgical expenses and hospitalization expenses until the cover limit reaches. In this type of policy, the rate of premium is decided on the basis of medical history and the age of the individual buying the plan. It is a good plan if you live life on your own.


#2: Family Health Insurance Plan

If you want to buy a health insurance plan that will cover your whole family like your spouse, children, and your parents then a Family Health Insurance Plan is an ideal plan for you. In this policy, any member who is insured by the plan can claim in case of hospitalization and surgical expenses. You have to pay a premium for the health insurance plan. The premium is determined on the basis of the age of the oldest member of the family. It is a good policy if you are a family person. This type of plan will give you mental stability and security. You don’t have to always think about future medical expenses and you can enjoy life with your loved ones.


#3: Senior Citizen Health Insurance

When you become old many types of health-related issues occur in your life. As medical expenses are high and your earning depends only on your savings, it will be difficult for you to meet such expenses. For this kind of situation, the insurance company has a plan. It is the senior citizen’s health insurance. This plan covers a person who is above 65 years old.

Also read: Is Disability Insurance Necessary for Business Owners?

The premium in these types of policies is usually higher than the rest of the health insurance policies as its risk factor is much higher. So if you are above 65 years and you don’t have an insurance plan it is the best option for you.


#4: Group Health Cover

An employer buys this type of policy for his employes. The premium of a group insurance policy is usually lower than an individual health insurance policy. In this type of policy, each of the employees enjoys the same type of benefits.


#5: Critical Illness Health Cover

In this type, generally, life-threatening diseases are covered. These policies usually pay the insurer a lump sum of money on the diagnosis of the serious diseases that are covered in the policy documents.  Like other insurance policies, hospitalization is not required in this type of insurance. Only the document of the diagnosis is enough for the claim.


#6: Top-Up Policy

This type of policy offers an additional amount of coverage over the regular policy. It can be used only after your regular policy cover is exhausted. For example, you have a regular health plan of $50000 and a top-up plan of $ 100000. Now your medical expense is $75000. So the regular plan will give you a coverage of $50000 and the rest will come from the top-up policy. This type of policy is a supplementary policy to the regular policy.


Benefits of Health Insurance

By taking this type of policy you can have a type of mental security. If something happens to you or any of your family members unexpectedly, the health insurance is going to take care of it. Medical expenses can burn out all the cash of an uninsured person. Whereas an insured person doesn’t have to worry about the financial part. So it is better to insure yourself and your family medically.



Every individual has a different type of medical needs. In this current world when the medical expenses are skyrocketing it is better for us to be medically insured.  An unexpected medical emergency can occur to anyone at any point in life. So you should always be one step ahead of your problems. This type of policy gives you security and gives you the opportunity to enjoy your life without worrying. Everyone has their own needs so it is better for you to consult with an advisor before taking up a health insurance policy.

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