Features of Individual Health Insurance
There are a ton of varied health insurance plans available in India like senior citizen health plans, family floater plans, and many more. One of the most popular forms of health insurance is medical insurance plans for individuals, where only one person benefits from the coverage. Individual insurance plans have a fixed sum insured which the policyholder/insured can use to pay off their eligible medical bills till the value of the sum insured gets exhausted.
Insurance companies calculate the premiums for individual insurance plans based on the applicant’s age, the coverage required, medical history, pre-existing conditions, and some other factors. You will have to disclose any pre-existing conditions to the insurance company at the time of buying a policy. It’s a good idea to get a health insurance cover early in your life so that your premium amount is less. Here are some of the things you should look for when buying a personal health insurance plan:
Minimum entry age and renewability clause
Room rent limit
Inclusion and exclusion of diseases and expenses
Type of No Claim Bonus
Other additional benefits
Benefits of Individual Health Insurance
Medical insurance plans for individuals comes with many benefits. Here’s a look at them:
One of the main benefits of individual medical insurance is the cheaper premiums that you can take advantage of. Family insurance plans usually have higher premiums as they cover multiple people. In contrast, personal health insurance plans have cheaper premiums as they only cover a single person. Your premiums can also go down if you are a young person in good health.
Another advantage of health insurance plans is the cashless benefit. You just need to inform your health insurance provider before or immediately after hospitalisation, fill the authorisation form with the third-party administrator (within the hospital premises) and you are done. You don’t pay anything unless your hospitalisation costs exceed the sum insured limit. To enjoy cashless hospitalisation, you must be undergoing treatment in a hospital or nursing home that is part of the insurance provider’s network.
Pre and Post Hospitalisation Cover
Depending upon the insurance provider, you can also get coverage on medical expenses that you have incurred before or after hospitalisation, up to 60 days. However, different insurance companies may have different periods of pre and post coverage, depending on their plans.
Some insurance providers offer discounts on premiums of your health insurance policy for every claim-free year. Others offer a facility called cumulative benefit, which increases your sum insured by a certain percentage for every year that goes without a claim.
You can get yearly tax deductions up to an amount of ₹25,000 if you are below 60 years, and ₹50,000, if you are above 60 years on health insurance premiums. These deductions are available under Section 80D of the Income Tax Act, 1961.