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How Does Individual Health Insurance Work? Read Benefits and Coverages

Medical emergencies can occur anytime, anywhere, and there is no guarantee that you or your loved ones will be safe from diseases or accidents. Future planning and being secure about healthcare needs are of utmost importance in this era of increasing medical and lifestyle expenditure.

Opting for a health insurance plan will prepare you and your family for the worst-case medical scenario. Of the various types of insurance policies available, individual health insurance is a feasible solution for those looking to be medically assured.

What Is Individual Health Insurance?

Individual health insurance is a policy that provides financial aid in case the policyholder requires medical assistance. An individual health insurance plan covers the medical expenses of an insured individual and offers benefits like cashless hospitalization, easy medication, and prompt services, among other things.

The premium for an individual health insurance plan is decided as per the sum insured opted for, medical history and age of the person buying the policy. You should start planning after the age of 18 since any kind of health policy could turn out to be beneficial.

The individual health insurance plan covers just a single one person i.e. the policyholder. If you buy individual health insurance from a reputable insurance company, you might also receive various benefits and facilities that enhance your coverage.

Benefits of Individual Health Insurance

There are various benefits of buying individual health insurance:

Customized Benefits:

Individual health insurance is tailor-made, and you can choose the one that best fits your needs. You can have coverage for a specific disorder, e.g., critical illness and personal accident cover. Some individual health insurance plans provide maternity coverage wherein ladies can get coverage regarding pregnancy expenses.

Assured Coverage Amount: If you purchase individual health insurance, you have a definite amount that is used towards your healthcare requirements. As such, you will no longer have to worry about dipping into your savings in case you contract any disease.

Coverage built for you:

The sum insured offered under the individual health insurance plan is available solely for you. As opposed to the family floater plan, where the sum insured is utilized by all the insured members as and when the need arises.

Risks and Premium:

Not every policy might suit you. You need to be practical when selecting an individual health insurance plan and ensure that it's the best one for your needs and requirements. If you opt for a family floater, it might end up being a costlier option since age acts as a risk factor in increasing the premium. In such a case, you should preferably go for individual health insurance.

Discounts and Other Benefits:

Many insurance companies offer healthcare plans with different offers and excellent discounts when purchased for more than one member. In such a scenario, opting for an individual health insurance plan can save you and your loved ones a lot of money.

Sole Tax Liability:

A great advantage of individual health insurance is gaining tax benefits. You have to pay a premium while you opt for any insurance, but you can also claim for a deduction. As per Section 80 D of the Income Tax Act, 1961, the premium is deducted from your taxable income. This leads to reducing your tax liability.

Concentrated Individual Benefits:

The plan covers risks like medical and critical illness, regardless of other family members health. In an individual health insurance policy, there is no need for a waiting period for the rest of the members if one uses up the policy coverage.

Additional Benefits:

An individual health insurance plan also has additional benefits attached to it like, restoration benefit under which the sum insured is again refilled during the policy term if the medical need arises for unrelated medical illnesses. Individual health insurance plans also come with additional inbuilt or add-on benefits like personal accident cover, worldwide coverage, etc.

Cashless Claim Satisfaction:

Almost all insurance companies assist you with cashless claim facilities. Such facilities make specific arrangements wherein you do not have to make any payments out of your own pocket. Instead, all medical expenditures are paid by the insurer.

It is advised to take advantage of all the suggestions given by your insurer's suggested hospital. For such services, you might have to submit a pre-authorization form and display your health insurance card.

Uninterrupted Safekeeping:

In group insurance plans, if an employee leaves the company, the claim will not be accepted. In contrast, with an individual health insurance plan, even though the employee is no longer the part of the organization, the coverage continues until the date of expiry of the policy.

How to Apply for an Individual Health Insurance?

Applying for an individual health insurance is not a difficult job. With improved technology, you can avail of a health insurance policy online from various online broking and aggregator sites. The process involves sharing your basic details, any past medical history, and the plan that's most suitable for you. You can then make payments and receive the policy instantly.

You should always compare various individual health insurance policies available in the market before making your final purchase. Check which benefits the insurance companies are providing and go for the one that suits your needs the best.

Final Take

Individual health insurance is the best protection for yourself. It will keep your medical tensions at bay, and ensure that your medical needs are never compromised. Buying health insurance is the first step towards a safe future and protection from financial losses. For any concerns regarding the purchase of individual health insurance, it is suggested that you talk to your financial advisors.

Recommended Link:Top Benefits of Individual Health Insurance

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