The policy owner may be an individual, a family, a company or various other groups of people who pay premiums in return for being insured. Being insured protects them, or their families or employers etc., against financial losses that might arise from potential risks.

2. What is a Health Insurance Policy, and why is
it so important?
“An insurance policy is a kind of contract made between an
insurance company and a policyholder. The policy owner
may be an individual, a family, a company or various other
groups of people who pay premiums in return for being
insured.”

Being insured protects you, your families or employers etc., against financial
losses that might arise from potential risks.

This definition is a broad one, and insurance contracts come in several
different types, which have been listed in the next slides.

3. Whole Life Plans

Insurance contracts that typically cease to be valid upon the death
of the policyholder, in which case an assured sum of money is paid
to the holder’s successors or nominees.

A lump-sum amount of money, or the ‘maturity benefits’ is paid to
the policyholder, when the contract expires, and the policy can be
extended or renewed.

4. Endowment Schemes

Schemes that remain valid only for a given period of time, be it ten,
twenty or thirty years.

If the holder survive the term he/she receives the maturity benefits
as well as an added bonus.

Unit Linked Insurance Policies (or ULIPs) are examples of
endowment schemes.

5. Children Plan

People who want to ensure that their children have the financial
aid required to study further, get married etc.

The policy usually matures when the child reaches a certain predetermined age.

Few schemes allow for a continuation of the policy even in case
the parent dies prior to the maturity date.

6. Individual Health policy

Availing of these will allow you to place a medical claim on the
insurance provider for expenses such as hospitalisation and, in
some cases, other medical facilities such as routine check-ups.

You will be required to pay a premium in accordance with the
financial cover provided.

7. Family Policy

The insurance company agrees to provide
risk cover for all family members mentioned
in the policy, up to the stipulated sum
assured.

These schemes are designed to cost less
than a usual, individual policy.

Family schemes are typically renewed on a
regular basis, mostly annually, and the total
risk cover is reinstated with each renewal.

8. Unit Linked Health Plan

These schemes combine aspects of insurance and investment.

Depending on how the policyholder’s investments perform, he
or she is returned a certain amount at the end of the policy’s
term.

ULHPs are still just developing, and are not quite as popular as
the other options offered by Mediclaim India.

The trend among consumers is to treat health insurance purely
as a necessary expense, and nothing more.

9. So, Look at your requirement, do a proper
research to see what options are available
in Insurance market and then select a
Health Insurance plan for you or your
family. Hope this information will help you
