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Written byLakshey Bahl
Published 7th November 2025
Reviewed byVaibhav Kumar
Last Modified 3rd July 2026
Insurance Domain Expert
Common types of health insurance policies in India
In India, there are different types of health insurance plans to suit the varied medical needs. There is a plan available for everyone, including individuals, senior citizen health insurance plan, family members, and groups. Here are some of the main types of health insurance in India:
1. Individual Health Insurance
An individual health insurance plan
is for a single individual. It provides coverage for the expenses incurred in the treatment and hospitalisation of the insured person up to the sum insured limit.
You can also buy individual health insurance for different family members, and each of them will be covered under their own sum insured.
You can also buy individual health insurance for different family members, and each of them will be covered under their own sum insured.
When to Buy?
- If you are an unmarried adult.
- If you are above 45 or 50 years old.
- If you are an individual with a pre-existing disease.
- If you need comprehensive coverage other than hospitalisation cover, etc.
2. Family Floater Health Insurance
An individual health insurance plan is for a single individual. It provides coverage for the expenses incurred in the treatment and hospitalisation of the insured person up to the sum insured limit.
You can also buy individual health insurance for different family members, and each of them will be covered under their own sum insured.
You can also buy individual health insurance for different family members, and each of them will be covered under their own sum insured.
When to Buy?
- If you are an unmarried adult.
- If you are above 45 or 50 years old.
- If you are an individual with a pre-existing disease.
- If you need comprehensive coverage other than hospitalisation cover, etc.
3. Group Health Insurance
Group health insurance is a health insurance policy for a group of individuals. Typically, employers buy group health insurance plans for their employees as an incentive. However, since these plans are affordable, the sum insured is comparatively lower for covering the major health issues of a group of employees. Also, if you leave your job, you lose the benefits.
When to Buy?
If you’re the employer of a company, you can opt for group health insurance plans to incentivise your employees.4. Senior Citizens Health Insurance
A senior citizen health insurance plan covers medical expenses for senior citizens aged 60 and above. This plan is specifically designed to cover age-related diseases, critical illnesses, and more. These health insurance plans have higher premiums because older adults are at a higher risk of health issues.
When to Buy?
- If you are a senior citizen over 60, and want coverage for your unique health needs.
5. Critical Illness Insurance
This health insurance plan covers the expenses incurred in the treatment of critical illnesses. Critical health insurance policies cover diseases like cancer, stroke, multiple sclerosis, paralysis, kidney failure, heart attack, etc.
If the insured is diagnosed with any of the critical illnesses listed in their insurance policy, they can claim the sum insured. You can get a one-time payout, irrespective of the medical expenses incurred or even without being hospitalised. However, critical illness plans have waiting periods of a maximum of 90 days and a survival period of up to 30 days.
If the insured is diagnosed with any of the critical illnesses listed in their insurance policy, they can claim the sum insured. You can get a one-time payout, irrespective of the medical expenses incurred or even without being hospitalised. However, critical illness plans have waiting periods of a maximum of 90 days and a survival period of up to 30 days.
When to Buy?
- If you have a family history of critical illness or major illnesses, you may opt for critical illness insurance.
6. Maternity Insurance
A maternity health insurance plan is designed to cover expenses incurred during pregnancy or childbirth. It covers the expenses of prenatal and postnatal cases, medical pregnancy termination, treatment and vaccination of newborns, etc.
If you are planning a pregnancy or are already pregnant, you can buy a maternity insurance plan. However, there is a waiting period that typically ranges from 3 months to 4 years, depending on the plan you have chosen.
If you are planning a pregnancy or are already pregnant, you can buy a maternity insurance plan. However, there is a waiting period that typically ranges from 3 months to 4 years, depending on the plan you have chosen.
When to Buy?
- If you’re a newlywed couple.
- If you are planning a pregnancy soon.
- If you’re already pregnant and looking for a plan with immediate, suitable coverage. Although most insurers may not offer maternity health insurance at this particular stage.
7. Top-up Health Insurance
When the coverage of your base health insurance policy gets exhausted, you may use a top-up health insurance plan to cover the medical expenses. These plans offer a high sum insured but come with a mandatory deductible. Top-up health insurance policies are designed to help extend your medical coverage without buying a new policy.
When to Buy?
- If you’re seeking extensive coverage at an affordable premium.
- If you need a backup health insurance in case your base plan gets exhausted.
8. Personal Accident Insurance
With personal accident insurance, you can claim insurance benefits for physical disabilities or life loss caused by an accident. The insured can claim a lump sum to cover their income loss due to partial or total disability. If the insured passes away in an accident, the nominee can claim the sum insured amount.
When to Buy?
- If you’re an individual involved in a risky occupation.
- If you’re the primary earner of the family, you can opt for this insurance.
9. Mediclaim Insurance
Expenses incurred during hospitalisation due to accident or illness are covered by mediclaim insurance. It covers in-patient expenses, including surgery, nursing charges, oxygen, doctor’s fees, anaesthesia, etc. With this basic health plan, you can claim coverage against unforeseen hospitalisation costs.
When to Buy?
- If you’re only looking for hospitalisation coverage, you may opt for mediclaim insurance.
10. Hospital Cash Insurance
Hospital cash insurance is a daily allowance paid by the insurer to the insured to cover daily expenses during hospitalisation. This covers the expenses of food charges, admission
charges, etc. Some health insurance plans may also include hospital cash cover as part of their base plan.
When to Buy?
- If you’re only looking for hospitalisation coverage, you may opt for mediclaim insurance.
11. Disease-Specific Health Insurance
Disease-specific health insurance policies are designed to meet the specific healthcare needs of individuals with various illnesses. These health plans include those for diabetes, dengue, and other conditions.
When to Buy?
- If you’re diagnosed with lifestyle diseases such as cancer, diabetes, hypertension, etc.
- If you’re living in cities prone to vector-borne diseases such as malaria and dengue, you may opt for this insurance.
How Does Health Insurance Work?
Health insurance works on a risk-sharing model. You pay a premium to the insurer, and in return, the insurer covers your medical expenses as per the policy terms.
You can avail treatment through:
- Cashless claims, where the insurer directly settles bills with network hospitals
- Reimbursement claims, where you pay first and get reimbursed later
Coverage typically includes hospitalisation, treatment costs, surgeries, and medications, depending on the plan.
Benefits of Health Insurance
Buying a health insurance policy offers various benefits, from extensive coverage to tax deductions on premium payments. Here are the top benefits of buying a health insurance policy:
1. Financial Protection
Medical emergencies can arise without warning and often involve significant expenses. A health insurance policy helps cover hospitalisation, treatment, and related costs. This reduces the need to use savings or take loans during emergencies. It ensures your finances
remain stable even during critical situations. As a result, you can focus on recovery instead of worrying about managing large medical bills.
remain stable even during critical situations. As a result, you can focus on recovery instead of worrying about managing large medical bills.
2. Protection Against Medical Inflation
Healthcare costs in India are increasing rapidly due to medical inflation. Treatments, hospital stays, and procedures are becoming more expensive each year. A health insurance policy helps you manage these rising costs effectively. It ensures that you receive quality treatment without financial strain. This becomes especially important for long-term financial planning and protecting your savings from unexpected healthcare expenses.
3. Cashless Treatment Facility
Health insurance plans offer cashless treatment at network hospitals. In this process, the insurer directly settles the medical bills with the hospital. You do not need to arrange funds during emergencies. This reduces stress during hospitalisation and ensures faster access to treatment. It is especially useful in urgent situations where arranging large sums of money quickly can be difficult.
4. Coverage for Pre and Post-Hospitalisation
Health insurance covers expenses incurred before and after hospitalisation. This includes diagnostic tests, doctor consultations, and follow-up treatments. These costs can add up significantly over time. Having coverage ensures that you do not pay these expenses out of pocket. It provides complete financial protection throughout the treatment cycle, not just during hospital admission.
5. Covers Advanced Treatments
Modern health insurance plans often include coverage for advanced and specialised treatments. These may include procedures like robotic surgeries or other high-cost medical interventions. Such treatments are usually expensive and may not be affordable otherwise. With the right policy, you can access better healthcare options. This improves the quality of treatment without creating a financial burden.
6. Tax Benefit
Health insurance premiums offer tax benefits under Section 80D of the Income Tax Act. You can claim deductions for premiums paid for yourself and your family. Additional deductions are available for senior citizen parents and preventive health checkups. This helps reduce your taxable income while ensuring financial protection. It makes health insurance a tax-efficient financial planning tool.
Why Buy Health Insurance at a Young Age?
Buying health insurance at a young age comes with multiple benefits and extended coverage. You can secure lower premiums, save more tax, get flexible waiting periods, etc. Here are some of the primary reasons why one should buy health insurance policies at a young age:
1. Lower Premium
Health insurance premiums are lower when you are young and healthy. Insurance companies consider younger individuals as low-risk policyholders. This results in more affordable premium rates compared to older age groups. Locking in a lower premium early helps you save money over the long term. It also allows you to maintain continuous coverage without facing high renewal costs later.
2. Easier Policy Approval
Buying health insurance at a young age improves your chances of quick approval. Younger individuals are less likely to have pre-existing medical conditions. This reduces the chances of policy rejection or higher premium loading. It also allows access to a wider range of plans and features. Early entry ensures smoother underwriting and fewer complications during the application process.
3. Completion of Waiting Periods Earl
Most health insurance policies include waiting periods for certain conditions and treatments. These may apply to pre-existing diseases or specific procedures. Buying a policy early allows you to complete these Waiting periods without urgency. By the time you may need coverage, these restrictions are already over. This ensures uninterrupted access to full policy benefits when required.
4. No Claim Bonus (NCB) Benefits
Insurance companies reward policyholders for not making claims during a policy year. This benefit is known as the No Claim Bonus. It may increase your sum insured or provide premium discounts. Younger individuals are less likely to make frequent claims. This increases the chances of accumulating higher bonuses over time. It helps enhance your overall coverage without increasing your premium significantly.
5. Long-term Tax Savings
Purchasing health insurance early allows you to claim tax deductions for a longer period. Premiums paid are eligible for deductions under Section 80D of the Income Tax Act. Over time, these savings can add up significantly. It not only reduces your tax liability but also
encourages disciplined financial planning. This makes early investment in health insurance financially beneficial in multiple ways.
Pointers to Help You Choose The Right Health Insurance Plan
Now that you know the types of health insurance plans in India, here is how you pick the right health insurance policy.
The Right Policy
It is recommended that you base all insurance-related decisions on adequate and accurate information. Do extensive research before purchasing health insurance. It will not only make the decision-making process easier and more efficient, but it will also assist you in selecting the best policy for you and your family. If you are unable to properly understand the information available online, you should consider speaking with an insurance company's agent.
Ensure Adequate Cover for yourself and dependants
Medical emergencies in your family are unforeseen. Moreover, purchasing separate insurance for each family member can be costly. As a result, a family floater allows you to cover every member of your family under a single policy. The main advantage is that you can use this insurance to cover the medical expenses of any and all family members up to the sum assured. Furthermore, you can claim a tax deduction of up to Rs.25,000 annually under Section 80D of the Income Tax Act for self and dependants. However, the annual 80D tax benefit can be as high as Rs. 1 lakh for senior citizen policyholder providing health insurance cover to their dependant parents/in-laws.
Premiums and Maturity Value
The premium rates and assured sum of each policy vary. The amount of premiums you pay is determined by the amount of coverage you choose. A higher coverage health insurance plan will cost more than a lower-value health plan. You will, however, have the option of purchasing top-up plans if necessary.
Limits on plans
There are insurance limits and sub-limit in certain policies. It is thus recommended that you read all of the terms and conditions of your insurance before purchasing it.
Network Hospital List
Check the network hospital list while looking for other information about your insurance. This will help you make cashless payments in the event of a medical emergency. The above are just some of the health insurance benefits that you need to consider.
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Frequently Asked Questions (FAQs)
Q. Does health insurance cover health check-ups?
Yes, health insurance like mediclaim plans usually cover your health check-ups and assist you in living a healthy life..
Q. Does health insurance cover dental treatment?
Dental care is usually not covered under mediclaim or health insurance. However, some health insurance plans may cover dental treatment expenses in the case of accidents or under OPD cover. Typically, these require payment of additional premium to purchase the applicable rider.
Q. Will I get a tax deduction benefit?
Under Section 80D, any individual or HUF can deduct medical insurance premiums paid in any given year from their total income. This deduction is also available for additional health insurance and critical illness insurance, for yourself, and also for your spouse, dependent children, or parents.
Q. How can I know the premium rates?
You can use an online health plan calculator to calculate the premium payable to purchase your chosen health insurance plan along with any applicable insurance plan riders. However, you will have to use such a calculator on multiple health insurance provider websites in order to compare different health plan options.
Q. Can I get my family covered by health insurance?
Yes, you can get all your family covered by health insurance plan. You could opt for a family floater health insurance to provide health insurance cover to all family members under a single policy or purchase separate health plans for each family member. The latter option is usually more expensive.
How many types of health policy are there?
There are a few common types of health insurance policies in India. The list includes individual plan, family floater, senior citizen plan, group health insurance, critical illness insurance, top-up health insurance, and maternity insurance.
It also includes mediclaim policy, hospital cash insurance, personal accident cover, and disease-specific health insurance policies.
It also includes mediclaim policy, hospital cash insurance, personal accident cover, and disease-specific health insurance policies.
How to claim health insurance?
You can claim health insurance policies in 2 ways: a cashless claim or reimbursement. In cashless claims, the insurance company pays your treatment expenses directly to the hospital; you don’t need to make any upfront payments.
However, in reimbursement, you need to pay the expenses at the time of treatment. Later on, the insurer reimburses the entire amount after you claim insurance benefits.
However, in reimbursement, you need to pay the expenses at the time of treatment. Later on, the insurer reimburses the entire amount after you claim insurance benefits.
Can I combine different types of health insurance plans?
Yes, you can have multiple health insurance policies from one or more insurers. However, claim settlement depends on the type of plan.
For indemnity-based plans, you can only claim up to the actual medical expenses incurred. If you have multiple policies, insurers may share the claim amount or you can claim the remaining balance from another insurer.
For fixed benefit plans, you can receive payouts from each policy independently, regardless of actual expenses.
For indemnity-based plans, you can only claim up to the actual medical expenses incurred. If you have multiple policies, insurers may share the claim amount or you can claim the remaining balance from another insurer.
For fixed benefit plans, you can receive payouts from each policy independently, regardless of actual expenses.
Are there tax benefits for different types of health insurance?
You can avail a tax deduction of ₹25,000 against health insurance premiums paid for self, spouse, kids, and parents. However, the deduction limit for senior citizen health insurance is up to ₹50,000.
An additional ₹5,000 deduction is available for expenses incurred for a preventive health checkup. This is applicable under Section 80D of the Income Tax Act, 1961 (old tax regime).
An additional ₹5,000 deduction is available for expenses incurred for a preventive health checkup. This is applicable under Section 80D of the Income Tax Act, 1961 (old tax regime).
Which health insurance is considered the best in India?
There is no single policy considered best, as it depends on various factors that differ from person to person. You need to select a suitable plan based on your medical needs to ensure that it is the right one for you. For example, an individual above 60 years of age should opt for a senior citizen plan to avail the best coverage rather than an individual plan.
What is the maximum amount of health insurance?
There is no specific maximum health insurance amount in India. It varies from one insurer to another based on the coverage and the health insurance plans they provide. In some health insurance policies, the sum insured can go as high as 1 crore.
What is not covered in health insurance?
Health insurance policies typically do not cover expenses incurred in the treatment of self-inflicted injuries, cosmetic procedures, etc. It also excludes coverage for expenses related to the treatment of external congenital defects.
ARN No : Nov22/Bg/21A
Sources:
https://www.livemint.com/money/personal-finance/what-are-different-types-of-health-insurance-policies-in-india-11654233086998.html
https://www.indmoney.com/articles/insurance/what-is-health-insurance-types-of-health-insurance-plans
https://www.livemint.com/insurance/news/how-to-choose-a-health-insurance-plan-for-your-family-11651021225701.html
https://www.theweek.in/news/health/2021/08/27/different-types-of-health-insurance-plans-in-india.html
https://www.outlookindia.com/website/story/business-news-do-health-insurance-policies-cover-dental-treatment-in-india/402964
https://cleartax.in/s/medical-insurance
https://navi.com/blog/health-insurance-premium-calculator/
https://www.forbes.com/advisor/in/health-insurance/how-to-choose-a-health-insurance-plan-for-your-family/
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