Individual Health Insurance
What is an Individual Health Insurance Plan?
Individual Health Insurance plans are meant to prevent a medical emergency or hospitalization from becoming a major financial strain as well. In the unfortunate case that a person becomes hospitalized, has a medical emergency or is afflicted by some disease, health insurance plans kick in. If the person had an individual health insurance plan prior to any such circumstance, the policy will financially support the cost of medical bills, medicines, tests, hospital rooms and other major medical claims. Having an Individual Health Insurance Plan is a major safety net in planning for a happy future. It cannot prevent any personal calamity, but such plans can ensure that you’re not financially strained during such trying times.
What are the benefits of buying an Individual Health Insurance Plan?
There are several major benefits of Health Insurance Plans offered by nearly all insurers today. These benefits may vary according to the specific policy you sign up for.
1. Cashless policies:
All the major insurers have agreements and tie-ups with major hospitals. Most insurers have a wide network of hospitals on offer. This partnership ensures that the treatment is all cashless and is simply deducted against your policy. It saves the patient from the hassles of submitting documentation and then generating reimbursements.
2. Pre-hospitalization expenses:
Many policies cover certain pre-hospitalization treatment expenses in case of disease or emergencies. This cover is granted between 30 and 60 days prior to hospitalization.
3. Post-hospitalization expenses:
A number of patients discharged after treatment still have a number of expenses during the period of recovery. These could be cost of medicines or follow up checks. Policies cover such expenses between 30 and 60 days of discharge.
4. Tax Benefits:
The premiums that you pay towards any health insurance plan carry tax benefits under section 80D of the Income Tax code. Tax breaks are provided for an amount of 15000 rupees for premium payments for individuals who are not senior citizens.
5. No-claims bonus:
Policies offer benefits if the policyholder did not claim any cover in the previous year. These benefits can be in the form of lowering the premium payment amounts, or an increase in the sum assured amount.
6. Free check-ups:
Many insurers offer the benefit of regular free medical check ups. These are offered more frequently if the insured has a good history of no-claims bonus.
7. Ambulance Charges:
Charges for ambulance rides are usually covered under the policy, taking the onus off of the insured to pay separately for this facility.
Why choose an Individual Health Insurance Plan?
Medical expenses are the ones that cause the maximum drain on personal and family finances. If you’re hospitalized for any reason, the costs of treatment may be too high to be borne out of your own pocket. In this case, it causes further strain on your mental health, already in strain due to the medical emergency. For relatively inexpensive premium payments, a health insurance policy will cover you against a wide range of medical expenses. An Individual Health Insurance Plan also carries tax benefits under section 80D of the IT code.
What are the things to consider when choosing an Individual Health Insurance Plan?
You should take the following into account before purchasing a health insurance plan.
1. Lifelong renewability:
Health insurance contracts are usually signed up for an year, with the contract subject to a renewal by the policyholder at the end of the term. Choose a plan which is auto-renewed and covers you when you may need it the most, especially in the older years of your life.
Health insurance portability between insurers is an important factor in the changing landscape of health insurance. Ensure that you don’t have to pay for moving away from one insurer to another to avail better benefits.
Under co-payment, you can split the cost of the medical expenses with the insurer. For instance, in a 10% co-pay policy, you need to pay 10% of the overall expenses and the insurer bears the remaining 90%. This is a good way to lower your premium costs for a policy.
Waiting period for pre-existing diseases : If you have a pre-existing disease or condition, your insurance policy will only start to cover the expenses from the costs of the treatment only after a few years of continuous renewal. You should always check the waiting period and the pre-existing diseases covered under a plan before opting for it.
When is the right time to buy an Individual Health Insurance Plan?
It may seem like a strange juxtaposition, but you should buy Health Insurance early on in life, when you’re in strong health. People who’re healthy feel like the status quo will remain forever and that they have no need to sign up for health insurance. However, an unfortunate incident or a disease can always be right around the corner and it’s better to be well prepared for such an eventuality. Early on, you feel like the money from your paycheck may be better utilized elsewhere. However, the tax benefits of investing in health insurance make it an attractive place to invest.
How much health insurance cover should I buy?
In buying the insurance plan that is right for you, begin by assessing the needs that may arise and any needs you have now. Take care to invest in a policy that allows you to get the broadest cover for a modest premium. Premiums for health insurance policies do not correlate exactly with the increment in coverage, which can be used to your advantage. Take into account the kind of room preferences you will have in case of hospitalization as that dramatically changes the cost of the policy. Also, consider if you have a pre-existing medical condition and the options for co-payment to reduce the premium amounts.
How can Individual Health Insurance Plans help protect your Family?
Individual Health Insurance plans have a long list of benefits. All of these are aimed to make sure that financial worries are waived in case of a medical emergency. Usually, there is the added stress of paying bills and managing expenses in case a family member is hospitalized. However, if the person has an individual health insurance plan, then the financial worries are mostly taken care of by the insurance company. This reduces the stress on family members who can instead focus on making sure that the individual gets better.
For a genuine and transparent advice on your Individual Health Insurance Plans, call our advisors on 9948 661 204 and get a Free Consultation for the first time. Alternatively, submit our enquiry form and one of our Financial Advisors will get back to you at your convenience.
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