Different Types of Health Insurance Policies in India

Different types of health insurance plans include individual, family, critical illness, and senior citizen policies. Choosing the right coverage ensures better healthcare protection and financial security.
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28-June-2025

Rising healthcare costs can strike without warning, often at the worst possible time. Investing in the right health insurance plan isn’t just smart—it’s essential. It ensures you and your loved ones can access quality treatment when you need it most, without draining your savings or delaying care due to cost concerns.

Looking for the right plan? Compare top-rated health insurance plans with Rs. 10 lakh coverage starting at just Rs. 9.3/day, cashless hospitals near you, and support for medical emergencies.

What is the list of different types of health insurance plans in India?

Types of Health Insurance

Suitable For

Individual Health Insurance

For a single person

Family Health Insurance

To cover families (self, spouse, children, and parents) and couples

Senior Citizen Health Insurance

For elderly people aged 60 years and above

Critical Illness Insurance

To cover the treatment of critical illnesses

Maternity Insurance

For pregnant women and women planning a pregnancy

Top-up Health Insurance

When the base health policy's coverage limit is exhausted/ If the base health policy has expired

Personal Accident Insurance

To cover accident death and disabilities

Mediclaim Insurance

To cover in-patient hospitalization expenses

Hospital Cash Insurance

To cover day-to-day ancillary expenses during hospitalization

Disease-Specific Health Insurance

For people suffering from diseases like cancer, diabetes, COVID-19, etc.

Pro Tip

Avail hospitalisation and treatment benefits with health insurance plans starting at just Rs. 15*/day.

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Different types of health insurance plans

Here are the different types of health insurance policies available in India.

Individual health insurance

Individual health insurance is a policy designed to cover medical and hospital expenses for just one person. This means the entire sum insured—say Rs. 1 lakh—is dedicated solely to the policyholder. Unlike family floater plans where the sum insured is shared, here each person enjoys full coverage independently.

For example, if both you and your spouse have individual plans worth Rs. 1 lakh each, both of you can claim up to Rs. 1 lakh separately—ensuring no compromise in critical situations.

Planning solo or want personalised protection? Explore individual health plans starting at just Rs. 9.3/day on Bajaj Finance Insurance Mall. Compare features, benefits, and cashless hospital access—all in one place.

When to purchase?

Consider buying an individual plan if:

  • You're unmarried.
  • You're over 45 or 50 years old.
  • You have a pre-existing medical condition.
  • You need coverage beyond just hospitalization costs.

Family health insurance

A family health insurance plan covers your entire family under a single policy, where the sum insured is shared among all insured members. Instead of buying separate policies for each person, you get one plan that simplifies coverage—and often saves money.

For instance, if you choose a Rs. 10 lakh family floater plan for 4 members, any one or all members can claim from that Rs. 10 lakh as needed during the policy year.

Want one smart policy for the whole family? Compare family floater plans starting at just Rs. 9.3/day*. Enjoy cashless hospitalisation, daycare treatment coverage, and zero paperwork.

When to Purchase?

  • If you are a newly married couple
  • If you have a nuclear family with young children

Group/employee health insurance

Group health insurance provides affordable healthcare coverage for employees or members of an organization. By covering a large group, it offers lower premiums and financial protection against unexpected medical expenses. This makes it a valuable benefit for both employers and employees, fostering a healthier and more secure workforce.

When to Purchase?

  • When starting a new job
  • When your family status changes
  • During annual open enrollment
  • If you become eligible for Medicare=
  • When leaving your job

Senior citizens health insurance

Health insurance plans for senior citizens cover individuals above 60 years of age. Senior citizen health insurance caters to all medical-related expenses at that age. You may need to undergo a medical check-up before you buy the plan, as senior citizens usually develop several age-related health conditions. These health insurance policies usually come with higher premiums.

When to purchase?

  • As you approach retirement
  • When you turn 60
  • If you have pre-existing conditions
  • When your health changes
  • If you're no longer covered by an employer's plan

Critical illness health insurance

Critical illness insurance is a dedicated safety net that provides a lump-sum payout when you're diagnosed with serious conditions like cancer, heart attack, stroke, kidney failure, or other life-threatening diseases. Unlike regular health insurance that pays hospital bills, this cover gives you complete financial control—use the payout for treatment, EMIs, second opinions, or even home care.

You can buy it as a standalone policy or as a rider with your existing health insurance—making it a smart, flexible add-on to safeguard your future.

When Should You Buy Critical Illness Insurance?

  • In your 20s or early 30s: Premiums are lower, and you get higher coverage.
  • If you have a family history of diseases like cancer, heart disease, or diabetes.
  • When you have dependents or loans—protect your loved ones from financial shocks.
  • If your corporate policy lacks critical illness cover.
  • When you want to focus on recovery—not bills, budgets, or EMIs.

Worried about "what ifs"? Compare health insurance plans with critical illness riders starting at just Rs. 9.3/day. Fast quotes, expert help, and policies tailored to your risk profile—because critical illness shouldn’t mean critical stress

Top-up health insurance

Top-up health insurance plan lets you scale up your insurance coverage at an affordable cost. This plan covers expenditures that are over and above the coverage of your regular health insurance policy.

When to purchase?

  • When your existing coverage is insufficient
  • Rising healthcare costs
  • Family history of critical illnesses
  • Limited savings
  • To avoid dipping into savings

Personal accident insurance

Personal accident insurance provides a financial safety net in case of accidental death or disability. It offers a lump sum payment to help cover lost income or expenses related to the accident. This ensures you and your loved ones are financially protected during a difficult time

When to Purchase?

  • If you have a high-risk job.
  • Frequent travelers
  • Sole breadwinner for your family
  • Limited savings or high financial obligations

Maternity Insurance

Maternity insurance covers medical expenses related to pregnancy and childbirth—including prenatal checkups, delivery (C-section or normal), postnatal care, and even newborn baby cover in some cases. It provides crucial financial support during one of life’s most important journeys—so you can focus on motherhood, not medical bills.

When Should You Purchase Maternity Insurance?

  • When you're planning a baby: It’s best to buy maternity insurance before conception due to waiting periods (usually 9 months to 2 years).
  • If you're already pregnant: Some policies may offer limited coverage, but early planning always gives the best benefits.
  • For comprehensive maternity care: Opt for a plan that includes coverage for complications, NICU expenses, and newborn vaccinations.
  • To control maternity costs: Childbirth can cost Rs. 50,000 to Rs. 2 lakh or more in private hospitals—insurance helps ease this financial load.
  • For peace of mind: Reduce stress and focus on a healthy pregnancy, knowing your policy covers major expenses.
  • Planning parenthood? Check health insurance plans with maternity cover and newborn protection starting at just Rs. 9.3/day on Bajaj Finance Insurance Mall. Compare top plans, get expert support, and secure your future family today.

Indemnity health insurance

Indemnity health insurance reimburses the exact amount to the policyholder for the medical expenses incurred. These policies do not offer any additional benefits, such as the waiver of premiums in case of a critical illness.

Defined-benefit plan

Defined-benefit plan policies offer a predefined amount of coverage for specific medical expenses. For instance, the policy will offer a fixed amount of coverage for each day of hospitalisation, irrespective of the actual expenses incurred by the policyholder.

When to Purchase?

  • When you want predictable payouts for specific medical events.
  • If you prefer a simple and easy-to-understand health insurance plan.
  • When you want to supplement your existing health insurance coverage.
  • If you are looking for a cost-effective way to cover specific needs.
  • When you want to ensure a fixed financial safety net for certain medical situations.

How does health insurance work?

Health insurance plans work on the concept of risk-sharing. When an individual purchases a health insurance policy, they transfer the financial risk of any medical emergency to the insurance company. In exchange, the insurance company offers coverage for the medical expenses incurred by the individual during the policy term. Government, employers, or private insurance companies offer health insurance plans.

Pro Tip

Avail hospitalisation and treatment benefits with health insurance plans starting at just Rs. 15*/day.

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Reasons why you need a health insurance policy

Here’s why having a health insurance policy important.

Rising healthcare costs

The cost of medical care is increasing every year. With medical inflation in India growing at 15%, it is essential to have health insurance to secure yourself against these rising healthcare expenses.

Protection against financial uncertainty

Medical emergencies come unannounced and can be financially draining. With a health insurance policy, you can secure yourself from any uncertainties without worrying about the financial burden of paying for medical expenses.

Comprehensive coverage

Health insurance policies cover various medical expenses, such as hospitalisation costs, doctor visits, ambulance services, pre-and post-hospitalisation expenses, and more. Such comprehensive coverage ensures that you receive the best medical care without any financial hindrances.

Tax benefits

Purchasing a health insurance policy also offers tax benefits. The premium paid towards your health insurance policy gets deducted under relevant sections of the Income Tax Act, which reduces your overall tax liability.

Long-term investment

Health insurance policies work as a long-term investment for your health. By paying a nominal premium, you secure yourself and your family against unforeseen medical emergencies for the long term.

Access to quality healthcare

With a health insurance policy, you have access to quality healthcare facilities and services. Most insurance providers offer cashless hospitalisation, where you can avail of medical treatment without paying anything upfront. This ensures that you receive the best medical care without worrying about the financial burden of paying for medical expenses.

Inflation-protected coverage

Health insurance policies provide inflation-protected coverage. This means that your health insurance policy coverage increases every year based on the inflation index. Such a feature ensures that you stay secure against rising healthcare costs.

Personalised coverage

Health insurance policies offer personalised coverage based on your age, lifestyle, and healthcare needs. This means that you can choose a policy that meets your specific requirements, and you only pay for the coverage you need.

Peace of mind

Finally, having a health insurance policy provides peace of mind and reduces stress levels. In case of a medical emergency, you can focus on recovering and getting the best medical care without worrying about the funds.

Important factors to consider while choosing the right type of health insurance plan

Navigating the world of health insurance can feel overwhelming, but selecting the right plan for your needs is crucial. With various types of health planning options available, it's essential to consider several key factors to ensure you make an informed decision. By carefully evaluating your individual circumstances, coverage requirements, and budget, you can find a health insurance plan that provides optimal protection and peace of mind.

Age

Your age plays a significant role in determining the type of health insurance plan that best suits your needs. Younger individuals may prioritize comprehensive coverage with lower premiums, while older individuals might require plans with higher coverage limits and specific benefits for age-related health conditions.

Current Health Condition

Your current health status is a critical factor in choosing a health insurance plan. If you have pre-existing conditions, you'll need a plan that covers those conditions and offers adequate coverage for potential medical expenses. Consider plans with comprehensive coverage and lower waiting periods for pre-existing conditions.

Coverage

Evaluate the extent of coverage offered by different health insurance plans. Consider what medical expenses are covered, such as hospitalization, surgery, critical illnesses, maternity care, and outpatient treatments. Choose a plan that aligns with your healthcare needs and provides sufficient financial protection.

Medical History of Family Members

Your family's medical history can influence your risk of developing certain health conditions. If your family has a history of critical illnesses like heart disease or cancer, consider plans with specific coverage for those conditions or opt for critical illness insurance as an add-on.

Sum Insured

The sum insured is the maximum amount your health insurance plan will pay for medical expenses. Choose a sum insured that adequately covers potential healthcare costs, considering factors like rising medical inflation, your health condition, and your family's medical history.

Waiting Period

Most health insurance plans have waiting periods for certain conditions or treatments. Evaluate the waiting periods for pre-existing conditions, maternity benefits, and specific procedures. Opt for plans with shorter waiting periods if you anticipate needing coverage sooner.

Deductibles

Deductibles are the amount you pay out-of-pocket before your health insurance coverage kicks in. Consider your financial capacity to pay deductibles and choose a plan with a deductible that aligns with your budget and healthcare needs.

Exclusions

Health insurance plans have exclusions, which are specific medical conditions or treatments that are not covered. Carefully review the exclusions list to ensure the plan covers the medical expenses you anticipate needing.

Co-payments

Co-payments are the percentage of medical expenses you share with the insurance company after paying the deductible. Evaluate the co-payment structure and choose a plan with a co-payment percentage that you are comfortable with

Things to consider when buying health insurance plans

Choosing a health insurance policy from a plethora of options available in the market can get difficult. Here are some points that you must consider when buying health insurance plans.

Choose the right insurance plan and coverage for you or your family

Before choosing a health insurance plan, it is crucial to determine which type of policy suits you best. An individual policy implies insurance for a single person, while a family health insurance plan extends the insurance coverage to your immediate family members. Senior citizen plans, specifically designed for elderly individuals, provide adequate healthcare coverage to them. Knowing which type of health insurance policy to choose will help you make the right decision.

Check if the coverages offered cater to your health needs

The ideal insurance coverage for you and your family varies based on several factors, such as your current health status, lifestyle, and healthcare needs. Therefore, it is essential to assess your insurance requirements before deciding. A comprehensive health insurance plan that provides coverage for hospitalisation, pre-and post-hospitalisation expenses, doctor visits, and ambulance services, among others, can be a good starting point.

Check the add-on features you can opt for

Apart from the basic insurance coverage offered, most insurers provide add-ons that provide additional benefits. For instance, some insurers provide critical illness cover that offers protection against life-threatening diseases. Maternity coverage is another add-on feature that covers pregnancy, childbirth, and postpartum care expenses. Knowing which add-on covers you want to opt for can help enhance the coverage of your health insurance policy.

Know the applicable sub-limits

Health insurance policies generally come with sub-limits or capping on specific expenses like room rent, consultation fees, medical tests, etc. Knowing these sub-limits will help you to avoid unpleasant surprises in the form of additional expenses that may not get covered under your policy.

Read all policy inclusions and exclusions

Reading all policy inclusions and exclusions is vital before purchasing a policy. Ensure to go through the terms and conditions of the policy carefully, including the waiting periods and deductibles. This will ensure complete transparency and no surprises later.

Know the claim settlement procedure

Claim settlement procedures differ among insurers. You can either make a cashless or reimbursement claim. Cashless settlement allows you to get medical treatment without paying anything upfront, while reimbursement requires you to pay the bills initially and seek reimbursement later. Knowing the claim settlement procedure help in availing health insurance policy benefits easily.

Know about the medical check-ups required before policy acceptance

Insurers generally require medical check-ups before accepting a policy. Based on the result, the insurer decides on the coverage offerings.

Choosing the right health insurance plan requires due diligence. Assess your medical requirements and budget before planning to buy a health insurance policy. Considering all the above points make the right decision and choose the best health insurance plan for yourself and your family.

Conclusion

In today’s unpredictable world, choosing the right health insurance plan isn't just a smart financial move—it’s a powerful act of self-care. Whether you're a young professional, a parent planning for your family’s well-being, or a senior seeking post-retirement peace of mind, the right coverage can mean the difference between delayed treatment and immediate care, or between financial stress and freedom.

From individual plans and family floaters to senior citizen policies, maternity, or critical illness covers—there’s a plan built for every stage of life and every unique need.

Take the guesswork out of it. Compare health insurance plans on Bajaj Finance Insurance Mall and get a quote in just 2 minutes. Plans with Rs. 10 lakh coverage start at only Rs. 9.3/day!

Frequently asked questions

What is the importance of health insurance?

Health insurance is essential as it protects you and your family against unforeseen medical expenses, rising healthcare costs, and financial uncertainties. It offers comprehensive coverage for hospitalisation and treatment costs, ensuring you receive the best medical care without worrying about the funds.

Is a ULIP (Unit Linked Insurance Plan) a type of health insurance plan?

No, a ULIP is not a type of health insurance plan. It is a type of life insurance plan that offers both insurance and investment opportunities. Health insurance provides coverage for medical expenses incurred during a medical emergency and does not offer any investment opportunities.

How many types of health insurance are there in India?

The Indian health insurance market offers a wide range of options to cater to diverse needs. Some of the common types of health insurance in India include:

  • Individual Health Insurance
  • Family Floater Health Insurance
  • Senior Citizen Health Insurance
  • Critical Illness Insurance
  • Maternity Insurance
  • Top-up Health Insurance
  • Personal Accident Insurance
  • Mediclaim Insurance
  • Hospital Cash Insurance
  • Disease-Specific Health Insurance
  • Group Health Insurance
  • Indemnity Health Insurance
  • Defined-Benefit Health Insurance
Which is the least expensive type of health insurance?

Generally, group health insurance plans tend to be the least expensive option. This is because they cover a large pool of people, which reduces the insurer's risk and allows them to offer lower premiums. However, the cost of any health insurance policy will vary depending on factors like coverage, sum insured, age, and health conditions.

How many types of health insurance are there?

While there are many specific types of health insurance plans, they can broadly be categorized into:

  • Indemnity Plans: These reimburse your actual medical expenses.
  • Fixed Benefit Plans: These provide a fixed payout for specific medical events.
  • Managed Care Plans: These focus on cost-effective care through a network of providers (like HMOs and PPOs).
What are the 5 main types of insurance?

While the specific types may vary depending on the context, five common and essential insurance categories are:

  • Health Insurance: Covers medical expenses.
  • Life Insurance: Provides financial support to your beneficiaries in case of your death.
  • Auto Insurance: Protects against financial losses due to car accidents.
  • Home Insurance: Covers damages to your home and belongings.
  • Disability Insurance: Replaces a portion of your income if you become disabled and unable to work.
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