Best Health Insurance Plan In India: Types Of Health Plans, Factors & Eligibility Criteria

A health insurance policy is a product that shields you from the financial repercussions of a wide range of health-related costs. From those brought on by minor injuries and illnesses to those brought on by serious diseases, the right health insurance policy will cover it all. Therefore, in the event that you have a significant medical bill, your health insurance coverage acts as a safeguard for your financial security.

What’s the need for Health Insurance?

One’s health is surrounded by so much uncertainty that it is practically impossible to have any control over medical costs. However, once you’ve signed up for an appropriate health insurance plan, you’ll be able to exert some control and feel more secure about the costs of your family’s medical treatment. Below mentioned are a few reasons to buy a health insurance plan –

  • Increasing cost of medical treatment is ever increasing
  • Medical inflation is at an all-time high
  • Under Section 80D of the Income Tax Act, 1961 you can get tax benefits on the premiums you pay
  • You can receive coverage for pre and post-hospitalisation expenses
  • Cashless treatment helps you manage costly treatments easily
  • COVID-19 hospitalisation is covered by most plans
  • You can get coverage for pre-existing diseases after a specific period.

Types of Health Plans

In India, a health insurance policy is more helpful than anything else because of the rising expense of healthcare services. To satisfy your needs, a variety of insurance packages are available. To choose the Best Health Insurance in India for yourself and your family, you need to understand the various types of plans available in India. The most popular types are discussed below-

  1. Individual Health Insurance

An Individual health insurance policy provides coverage for you, your spouse, your kids, and your parents. In such a policy, every family member has a separate sum insured.

  1. Family Floater Health Insurance

You should buy a family floater health insurance plan if you are looking for a reasonable health insurance scheme. Under this policy, a single sum insured floats for each family member. The premium is significantly less than that of an individual health policy.

  1. Group Health Insurance

This policy is purchased for a group of co-workers/ employees, mostly by an employer. The premium for the group health insurance policy is reasonably priced. This policy covers your hospitalisation charges due to accident, psychiatric illness, severe disease or maternity, based on the specific coverage.

  1. Maternity Health Insurance

Maternity health insurance generally comes with a two-year waiting period and provides coverage for infertility costs, childbirth (including medically required abortions), and newborn care for the first 90 days. You can also purchase a maternity cover as an add-on with your basic health insurance programme.

  1. Senior Citizen Health Insurance

Specifically created for individuals over the age of 60, this policy provides coverage for the cost of prescription drugs, hospitalisation due to an accident or disease, as well as pre and post-hospitalisation.

  1. Top-Up Health Insurance

If you are looking for a higher coverage amount, you can buy a top-up health insurance plan, but there is a ‘ Deductible Clause’ with these plans that states claim payment will be made only above the defined limit mentioned in the plan.

  1. Critical Illness Insurance

This policy is specially designed for the treatment of diseases with expensive affairs. This policy provides you with a specific lump sum amount irrespective of the total cost incurred during the treatment.

Factors affecting the premium of your health insurance plan

When you are looking for the best health Insurance in India, the premium that you need to pay is an important criterion. Keeping in mind the following factors will give you a better understanding of your policy:

  1. Age

Age is one of the major factors that determine your health insurance premium. The insurance premium of an old age individual is more than that of a young one as they are more prone to illness.

  1. Sum Insured

Sum insured also affects your health insurance premium; the higher the sum insured, the higher will be the premium and vice-versa.

  1. Type of Policy you choose

Your insurance premium also depends upon the type of health insurance scheme you buy. Long-term policies that extend for 2 to 3 years can offer you a discount.

  1. Additional Coverage

Additional coverages are the add-ons that you can buy to enhance the benefits of your health insurance plan. You cannot exceed 30% of your existing premium amount for all the add-ons you choose.

  1. Medical Health and lifestyle habits

A family medical history of illnesses, will result in a higher health insurance premium. Also, individuals who are heavy drinkers, smokers or are overweight are more prone to illnesses and have to pay higher premiums.

Eligibility Criteria when buying Health Plans in India

Take a look at the eligibility criteria that you need to qualify to buy a health insurance plan:

  • The applicant should be between the age of 18 to 60 years
  • If you’re already dealing with pre-existing health conditions, you may still be able to buy a plan to cover them, just make sure you inform your insurer about the same
  • You may be required to undergo a medical test that will define if you’re eligible for a health insurance plan. Medical tests are mostly mandatory for individuals above the age of 40.

Best Health Insurance in India

Name of the PlanHighlighting features
Aditya Birla Activ Health Platinum Enhanced PlanThe plan’s distinct Health Returns programme allows you to receive up to 100% of your annual premium as a reward for living a healthy lifestyle. This earned premium can be applied to renewal premiums.
Oriental General Insurance- Happy Family FloaterThe policy offers maternity as well as newborn baby coverProvides an on-request extension to coverage in SAARC countries without any extra premium
ICICI Lombard- Complete Health InsuranceIf the money insured is spent up in the same policy year on an earlier claim, it can be restored in fullOptional coverage features include hospital cash allowance, maternity insurance, critical illness cover, and so on.
Bajaj Allianz – Individual Health GuardCovers bariatric surgery expenseProvides free preventive health check-ups
Care Youth Health Insurance planAll insured members are entitled to free annual health checkupsThe plan includes coverage for robotic operations.


An unforeseen health issue can make a big dent in your savings. You must consider buying a health insurance plan to lessen the financial load of any such medical expenses. Despite best efforts of maintaining a healthy lifestyle, unexpected medical expenses cannot always be avoided. So explore the multiple options available and choose the best health insurance in India to safeguard yourself and your family members.