Health insurance is extremely important nowadays because the risk of getting sick or injured cannot be predicted in advance. Therefore, having health insurance is a way to financially and physically prepare for the future. In this article, we will explain what health insurance is and how many types there are.
What is health insurance?
Health insurance is an agreement made by an insurance company to compensate for the expenses incurred from the insured individual's medical treatments, regardless of whether those expenses arise from illnesses, diseases, or accidents. The coverage can be divided into seven main categories, which are:
- The expenses involved in receiving medical treatment at a hospital consist of various components, including room and board charges, meals and food costs, general services charges, and emergency medical expenses.
- Surgical expenses
- Medical expenses
- Outpatient expenses
- Delivery costs
- Dental expenses
- Compensation of expenses
However, each type of health insurance may not provide comprehensive coverage across all seven categories mentioned earlier because each individual's health insurance needs vary. Consequently, there are various health insurance plans available today, tailored to meet different and diverse individual needs. These will be explained in the next topic.
How many types of health insurance?
In general, health insurance is divided into two main types: group health insurance and individual health insurance. However, currently, there are many different types of health insurance available. This article will present some interesting health insurance plans, categorized and named based on their characteristics and unique features. These are commonly understood and referred to by the general public. Let us provide all five groups of health insurance as follows:
1. Health Lump Sum Protection
Health lump sum protection usually covers benefits and protection for all categories, including actual medical expenses. In the case of serious illnesses, the coverage limit for each incident may extend up to millions of Thai baht. This type of health insurance helps alleviate concerns about rising medical costs that could be affected by inflation. If one has health insurance under other types, such as health insurance with a deductible, the incurred medical costs might exceed the coverage limit for each category. However, it is worth noting that the premium for this type of health insurance may be higher compared to other health insurance types.
Example
OCEAN LIFE Enjoy Health (Plan 3)
2. Health insurance with seperate treatment costs
Health insurance that sets a limited coverage amount for each category, such as benefits for inpatient cases, room and board expenses, medical service fees, or the cost of medication upon discharge, and so on. Typically, the coverage limit is per admission for inpatient treatment, and this limitation on the coverage may result in the actual medical expenses not being fully covered.
This type of health insurance often has lower insurance premiums compared to health lump sum protection. It is suitable for individuals who already have other health benefits but still worry that they may not be sufficient.
Example
OCEAN LIFE Ensure Health Plan 1
3. Health insurance with a deductible
Health insurance of this type is designed for the insurance company to cover specific categories and benefits, but the insured individual will be responsible for paying any medical expenses that exceed the predetermined deductible amount. The deductible amount is clearly stated in the policy's terms and conditions.
This type of health insurance is suitable as supplementary coverage for individuals who already have group insurance with health benefits, company benefits, or government employee benefits.
Health Plus Rider (Deductible)
4. Critical illness health insurance
Health Insurance for Critical Illnesses specifies the number of severe illnesses covered, which generally includes diseases with relatively high medical treatment costs, such as brain tumors, severe hepatitis, and more.
5. Outpatient health insurance
Health insurance that covers outpatient medical expenses. This type of insurance provides coverage for policyholders who receive medical treatment at healthcare facilities without being admitted as inpatients. Examples include coverage for conditions like chemical-induced rashes, diarrhea, and more.
In addition to the aforementioned health insurance types, there are several additional options riders available to choose from. For example, riders that provide daily income compensation or specialized health coverage for children. Before applying for health insurance, the applicant should carefully consider the coverage of each insurance type, possibly comparing it with existing benefits to avoid overlapping coverage. This will ensure that the selected health insurance plan becomes a valuable aid in times of illness.
