Individual Health Insurance: What is it and Why is it Necessary?

Individual Health Insurance: What is it and Why is it Necessary?

With the increasing awareness to lead a healthy lifestyle among the working professionals, individual health insurance has become a must-have. Individuals are getting more attracted towards investing in individual health insurance even though they have company-sponsored insurance plans.

What is Individual Health Insurance?

An individual health insurance, as the name suggests is a type of insurance plan which covers only one individual. These plans are generally highly flexible and come at a lower premium i.e. they are cost effective.

Why Choose an Individual Health Insurance Plan?

There are multiple reasons to go for an individual health insurance policy plan. Some of the top advantages include:

● Affordable Premiums with Add ons:

In general, the individual health cover plans are affordable since the premiums are lower when compared to family insurance plans. The premium depends upon the age and thus, younger individuals will have to pay a lesser premium than aged ones. Also, there are multiple add ons that one can avail like Covid Care, OPD coverage, Discount on services, etc.

● Flexible and Customizable:

Individual health insurance plans are generally highly customizable and one can easily choose coverage against particular ailments. Also, depending on the insurance company and policy, it can cover pre-existing diseases after a specified waiting period.

● Cost-effective & Tax Benefits

In most cases, the premium for an individual health insurance policy plan is lower than the family floater cover. Also, an individual can avail tax benefits under Section 80D of the Income Tax Act.

● No Age Cap & Pre Policy Medical Check-Up

In individual health insurance policies, there is no maximum age limit. Thus, it is highly suitable for elderly people. Also, depending upon the policy terms, there is relaxation in pre policy medical check-up. For example, the individual health insurance provided by Care health insurance does not require pre policy medical check-up if the insured amount is below 15 lakhs or the individual is below 45.

● Lifetime Renewability:

There are no restrictions on the maximum age of the individual for the renewal of the policy. Also, in most cases, lifetime renewability is available even if a claim is made in the earlier year.

Who Should Buy an Individual Health Insurance Cover?

An individual health insurance is best suited for:

  • Suitable for elderly people since there is lifelong renewability
  • Individuals with higher health risks
  • Individuals who wants the advantage of availing the entire sum assured rather than floating sum assured

How to Choose the Right Individual Health Insurance Plan?

  • Compare different plans and understand individual needs.
  • Check premium cost and the sum assured
  • Properly check inclusions and exclusions of the respective plan. Also, get clarified whether a pre medical test is required, critical illness is covered, etc.
  • Check the additional benefits of the cover like AYUSH benefits, Annual Health Check-Ups, etc. Also, clarify the limit of Hospitalisation, ICU, Domiciliary, Ambulance, etc.

These aforementioned points would help you to choose the right insurance policy. Before buying any insurance, it is extremely important to understand individual needs and then check for the policies which best suits you.