It is said that ‘health is wealth,’ and it is paramount that you take care of it the whole life. Today, even as medical technology is evolving and new treatment is developed, the cost of treatment has increased significantly. This is why everyone needs to purchase a health insurance cover. The health insurance policy provides financial protection against expensive medical care. Typically, most health insurance plan covers both pre-and post-hospitalisation charges. It is the best solution for people who cannot afford high-quality treatment due to high costs and unavailability of cash.
Features of an individual health insurance plan
- This type of health insurance policy, as the name suggests, provides protection only to one person (the policyholder).
- Generally, the coverage of the individual health insurance plan differs based on the type of plan you buy and the premium amount you pay.
- A significant benefit of an individual health plan is that it offers lifetime renewal, which means that you can be assured of protection for as long as you live.
- Another critical benefit of this plan is that you tax benefit under Section 80D of the Indian Income Tax Act. You can avail tax deduction on the amount you pay toward the premium.
- An individual health plan covers most of the hospital-related expenses include bed charges, surgery cost, laboratory tests, doctor’s consultation fee, etc.
- It provides coverage against various critical illness as listed in the policy document.
- You can opt for a cashless treatment facility under this plan. With cashless facility, you need not pay a single penny to the hospital. The insurance company will directly settle the bill.
Who should buy an individual health insurance policy?
- Individual health policy is ideal for people who have a family history of chronic illness and therefore have a high health risk.
- Single individuals who are looking for an insurance cover with an affordable premium. The premium for an individual policy is much affordable than a family health insurance plan.
- An individual who wants to enjoy the benefits of full sum assured rather than sharing it with other members, as is the case in a family floater plan.
- An individual health insurance plan is best suited for people who wish to renew their policy without worrying about age restrictions.
- It is better to buy an individual health plan if you want to get a higher level of protection than what you get under a family health plan.
What is not covered under individual health policy?
While buying an individual health insurance policy, you must read the policy documents carefully to know the exclusions of the plan. The exclusions differ from insurer to insurer, but generally, most insurance companies do not cover:
- Any pre-existing disease that you may have. You cannot file a claim for the treatment of such diseases immediately after purchasing the policy. There is a certain pre-defined waiting period for it.
- The amount of compensation you receive may vary from 10% to 90% of the sum insured for certain diseases.
- Most insurance companies do not compensate for non-allopathic treatment. This means if you opt for alternative treatment methods like an ayurvedic or homoeopathic treatment, you may not receive compensation for the same.
- Treatments related to drug abuse or alcohol intake are not covered.
- Cosmetic treatments and aesthetic procedures are not covered under the individual health insurance plan.
An individual health insurance plan is the most definitive way to get financial protection against medical expenses and get the best quality medical care. But, before you buy an insurance policy, you must compare the different plans from different insurance companies in terms of premium amount, inclusions, waiting period, exclusions, claim settlement ratio and choose the right plan that suits your needs.
