Health insurance comes in many forms, each designed to provide solid financial protection against the rising costs of medical care.
When considering health insurance plans, remember that individual health insurance and family health insurance provide different kinds of coverage. Understanding how each works can help you make the best choice for yourself and your loved ones.
Let us explore what an individual health insurance policy in India entails and how it might be the right fit for you.
What is an Individual Health Insurance Policy?
Individual health insurance is a type of plan that provides medical coverage specifically for you, based on an individual sum insured. Unlike family plans, each person needs a separate individual health insurance policy.
This plan is ideal if you want to tailor the coverage to meet your unique health requirements instead of those of the entire family.
Most individual health policies cover a range of medical needs, such as emergency hospitalisation, daycare procedures, ambulance services, alternative treatments, and expenses for organ donors.
However, remember that an individual policy’s premium and benefits apply solely to you and cannot be shared with other family members.
What are the Benefits of Availing an Individual Health Insurance?
The following are the benefits of availing an individual health insurance policy:
- Protection Against Lifestyle Diseases
With conditions like PCOS, obesity, and type 2 diabetes on the rise among younger people, individual health insurance offers essential protection, covering everything from diagnosis to treatment.
- Support for Mental Health
Given the increasing mental health challenges, especially for those under 40, health insurance often includes psychiatric benefits, prioritising both physical and mental well-being to help you along your wellness journey.
- Maximises Your Savings
Health insurance can relieve you of rising medical expenses, allowing you to preserve and grow your savings while having a safety net for healthcare costs.
- Tax Benefits
When you buy an individual health insurance policy, you can enjoy tax deductions on premiums. Under Section 80D of the Income Tax Act, you may claim up to ₹25,000; for self, family, and dependent parents, deductions can go up to ₹1,00,000.
- Family Discounts
Many individual health policies offer family discounts if more than two families hold separate policies under the same plan.
- Lifetime Renewability
Individual health insurance plans typically provide lifetime renewal. Policies often include extra benefits, such as increased coverage and no-claim bonuses upon renewal.
- Affordable Premiums
Getting health insurance early means paying a lower premium. It also means the waiting period for critical coverage will pass sooner, giving you comprehensive protection sooner.
- No Claim Bonus (NCB)
If you do not file any claims within the policy term, you can qualify for an NCB, giving you extra benefits for staying claim-free.
- Cashless Hospitalisation
Insurance providers partner with hospitals to offer cashless treatment options. By choosing a hospital from their network, the insurer directly settles your bills, letting you focus on recovery.
- Optional Add-Ons
Customise your health plan with add-ons like maternity benefits, critical illness coverage, restoration benefits, outpatient care, and more.
- Digital Convenience
Modern health insurance plans offer online access, making it simple to manage your policy, file claims, and retrieve documents anytime, anywhere.
- Quick and Easy Process
With the availability of online insurance policies, applying for individual health insurance is fast and straightforward. You can compare options and get insured in minutes.
- Eco-Friendly Paperless Processing
Enjoy the convenience of a paperless process for applying, renewing, and managing your policy. This approach saves resources and makes everything efficient and hassle-free.
How to Buy Individual Health Insurance Online?
With a user-friendly, fully digital process nowadays, you can buy health insurance online, which is very simple. You just need to follow the steps mentioned below:
Step 1: Open the insurer’s app or website, enter your PIN code and mobile number, then tap ‘View Prices.’
Step 2: Choose the family members to cover and add the age of the eldest member.
Step 3: Click ‘Continue’ to select your desired sum insured, plan, and additional options.
Step 4: Fill in the details for each family member, then click ‘Pay Now’ to finalise the payment and complete the required KYC verification.
Your policy document will be sent to you via email, SMS, and WhatsApp, and you will also have 24/7 access to it through the app.
Key Factors to Consider When Buying Individual Health Insurance
When you are looking for health insurance for yourself, you must consider the following key factors:
- Healthcare Expenses in Your City
Healthcare expenses in India vary significantly between cities. If you are residing in a city with a high cost of living or expensive healthcare, make sure you are account for that while choosing the sum insured.
- Accounting for Healthcare Inflation
The cost of treatment rises annually due to inflation. Select an amount of coverage that considers future rises in these costs.
- Pre-Existing Conditions
If you have a pre-existing medical condition, a higher coverage level may be necessary to ensure all grounds are fully covered. Also, make sure that you are properly disclosing all pre-existing conditions to your insurer.
- Age and Lifestyle Considerations
Age and lifestyle define health care requirements. Those who fall within the higher age bracket or are active smokers or drinkers require extensive coverage and typically have to pay higher premiums.
- Affordability and Cost Sharing
Consider opting for policies that allow co-pay options, which let you share some hospital costs and reduce your premium. You can also select plans with flexible payment options, such as monthly, quarterly, semi-annual, or yearly premium payments.
- Broad Network of Hospitals
Always check if the insurance provider has a large hospital network to ensure cashless treatment options. With an extensive network of hospitals, some health insurance providers offer comprehensive options for convenient and cashless medical care.
- No Sub-Limits on Charges
Choose a policy with no sub-limits on hospital rooms and other charges. Many policies impose illness-specific limitations, making this an essential feature.
- Consider Waiting Periods
Your policy will not provide full benefits during the waiting period. When selecting a policy, look for options with shorter waiting periods, particularly for maternity benefits and coverage for pre-existing conditions.
- Reputable Insurer
Go with an insurer with a solid reputation. Research the company’s claims history and customer base to ensure it can honour future claims.
- Budget and Affordability
Assess what you can afford without straining your finances. While enough coverage is essential, it should also be within your budget.
- Add-Ons and Riders
Some policies offer additional benefits, like coverage for critical illnesses, maternity, or senior needs. Evaluate whether these options suit your specific needs.
Individual health insurance policies are essential for safeguarding your health and finances in an increasingly expensive medical landscape. By understanding the benefits, key factors to consider, and the straightforward process of purchasing a policy online, you can make informed decisions that cater to your unique health needs.