Compare & Buy Car, Bike and Health Insurance Online - InsuranceDekho
Track & Policy DownloadLogin

Understanding Health Insurance After Policyholder's Death

With inflation in the healthcare sector, it has become important to buy a health insurance policy. It is a financial asset that financially protects individuals against medical emergencies. In India, there are many health insurance companies that provide a wide variety of health policies. Some of these include family floater health insurance, individual health insurance, a critical illness plan, and others. Each policy provides separate features and benefits to the policyholders. Let’s understand better with an example. 

Mr Rakesh bought a family floater health insurance policy, and Mr. Vinayak bought an individual health insurance plan from InsuranceDekho. When Mr Rakesh died due to an accident, his family floater plan was still active and was providing coverage to the remaining members of the family. However, when Mr Vinayak died in an accident, his health insurance policy was terminated. However, her wife (a beneficiary of his policy) got a claim amount for all the treatment costs and medical bills incurred during Vinayak's treatment. 

As seen in the above example, each health insurance policy has different outcomes when the policyholder dies. So, let’s find out what happens to a health plan after the death of the policyholder in each type of policy. 

Understanding Health Insurance After Policyholder's Death

What Happens To Health Insurance After the Policyholder's Death?

Here’s the impact of the death of a policyholder on each type of health insurance policy. 

  • Family Floater Health Insurance Plan: 

As the name suggests, a family floater health plan is a policy in which all the family members are covered under the same policy. Under this family health coverage plan, after the demise of the primary policyholder, the remaining family members continue to receive coverage. As seen in the above example of Mr Rakesh, the other family members were still getting health insurance coverage. However, in order to continue receiving the benefits, the other family members may have to make timely premium payments. 

  • Individual Health Insurance Plan: 

An individual health insurance policy covers only one person. Therefore, the insurance will become null and void upon the insured's death. If the insured chooses his or her spouse or another family member as a nominee, he or she will receive death benefits following the death of the policyholder.

  • Senior Citizen Health Insurance:

After the policyholder's death, the policy becomes invalid. For instance, Rahul bought senior citizen health insurance for his 80-year-old father. Therefore, when his father died, Rahul was only able to claim the treatment bills and expenses. Thus, no death benefit is given in this type of policy. 

  • Critical Illness Health Insurance: 

In order to get benefits under a critical illness health plan, the insured must live for a specific amount of time after being diagnosed. If the policyholder is during this term, the policy is rendered null and invalid. Moreover, no death benefits are given under this type of policy. 

For example, a person is diagnosed with cancer two months after purchasing critical illness insurance. The critical illness coverage has a 30-day survival period, yet the insured dies within 10 days of diagnosis. According to the policy's terms and conditions, his or her family will receive no benefits.

  • Group Health Insurance Policy:

A group health insurance policy is a type of policy that is provided by an employer to its employees. In the event of the death of an employee, the dependents will not be covered unless specifically stated in the policy. If there is a death benefit clause in a policy, the beneficiaries of the policy will receive compensation. 

Conclusion

In conclusion, there are different types of health insurance plans. However, the most suitable one is the family floater health insurance plan, as it continues to provide coverage to the other insured members even after the death of the primary policyholder.

Also read: How can IPA help you?

Disclaimer

This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

Health Insurance Coverage Calculator

Who do you want to insured ?

  • Individual
  • Couple
  • Family
  • Parents

Age of eldest insured member ?

Where do you live ?

Metro
Non-Metro
Disclaimer : Actual Coverage might vary basis your location, age and number of members

Best Health Insurance Plans In India

  • Cover 5 L
    Starting at 832/month*
    No room rent limit 100% no claim bonusUnlimited restoration benefits3 years PED waiting period
    View All Features
  • Cover 10 L
    Starting at 739/month*
    No room rent limit Unlimited restoration benefits50% no claim bonus4 Years PED Waiting period
    View All Features
  • Cover 5 L
    Starting at 447/month*
    No room rent limit 33% no claim bonus100% restoration benefits3 years PED waiting period
    View All Features
  • Cover 5 L
    Starting at 1,312/month*
    No room rent limit 50% no claim bonus100% restoration benefits3 yrs PED waiting period
    View All Features
  • Cover 5 L
    Starting at 448/month*
    Single Private A/C Room 20% no claim bonus100% restoration benefits1 year PED waiting period
    View All Features
  • Cover 5 L
    Starting at 664/month*
    No room rent limit null20% no claim bonus100% restoration benefits2 years PED waiting period
    View All Features
  • Cover 5 L
    Starting at 675/month*
    No room rent limit 50% no claim bonusUnlimited restoration benefits3 years PED waiting period
    View All Features
  • Cover 5 L
    Starting at 690/month*
    Single Private A/C Room 100% restoration benefits3 years PED waiting period
    View All Features
  • Cover 5 L
    Starting at 546/month*
    Twin sharing room Zero no claim bonus100% restoration benefits2 years PED waiting period
    View All Features
  • Cover 5 L
    Starting at 566/month*
    No room rent limit 20% no claim bonus100% restoration benefits3 years PED waiting period
    View All Features
  • Cover 5 L
    Starting at 1,770/month*
    Zero no claim bonusNo restoration benefits1 year PED waiting period
    View All Features
  • Cover 40 L
    Starting at 62/month*
  • Cover 2 L
    Starting at 146/month*
  • Cover 5 L
    Starting at 806/month*
    Single Private Room 10% no claim bonus100% restoration benefits2 years PED waiting period
    View All Features
  • Cover 5 L
    Starting at 476/month*
    60% no claim bonus150% restoration benefits4 years PED waiting period
    View All Features
  • Cover 5 L
    Starting at 526/month*
  • Cover 5 L
    Starting at 855/month*
    25% no claim bonus100% restoration benefits4 years PED waiting period
    View All Features
  • Cover 5 L
    Starting at 448/month*
    Single Private A/C Room 20% no claim bonus100% restoration benefits1 year PED waiting period
    View All Features
  • Cover 5 L
    Starting at 396/month*
    Room rent upto 2% of SI Room rent upto 1% of SI No room rent limit Single Private Room
    View All Features
  • Cover 5 L
    Starting at 738/month*
    No room rent limit 50% no claim bonus100% restoration benefits3 yrs PED waiting period
    View All Features
Note: Premium is shown for 18yr old individual of Delhi
Show More
Must BuyMust Buy

Why to Buy Health Insurance Policy Online from InsuranceDekho

  • Tax benefit upto 75,000*
  • Claim support everyday 10AM-7PM
  • 80 Lacs+ happy customers