Individual Health Insurance

Previously, we have learned there are different types of health insurance policies available in India. In this section, we particularly focus on discussing the features and benefits of the Individual Health Insurance Policy. So, let us begin. 

Individual Health Insurance

Nothing in life matters more than good health. Simply said, good health is the basis of all our future endeavours and lays down the groundwork for all the major accomplishments we make. However, lifestyle habits, the pervasiveness of pollution, stress during work and ignorance regarding certain aspects of health planning have resulted in many people suffering from unforeseen health disorders. As medical costs increased owing to the impact of inflation and other factors, buying an adequate health insurance policy became important. 

Key Features of Buying Individual Health Insurance:

Many people are now buying individual health insurance plans to ensure that they are able to avail the necessary treatment at their choice of hospital, if and when required. The essential features of any individual health insurance policy include:

• This kind of health insurance affords cover to a single individual only. This means that only the insured individual covered under the policy gets all the benefits of the sum assured and other added advantages pursuant to the policy in lieu of nominal premiums;
• The insurance company covers all the costs of hospitalisation and subsequent medical treatment subject to the condition that the medical bills do not exceed the sum assured;
• There is scope for lifetime renewability in most individual health insurance policies. This means that the policyholder can start early and continue to be covered under the same policy till the end depending on choice and requirements;
• Tax benefits as premiums paid towards individual health insurance plans are eligible for tax deduction under Section 80D of the Income Tax Act;
• Pre and post-hospitalisation costs are also covered under individual health insurance plans;
• Depending on the kind of insurance company one has opted for and the age at which one buys the plan, policyholders may have to agree to the co-payment clause. Agreeing to the co-payment clause proves beneficial as policyholders are guarded against agreeing to unnecessary treatment proposals, thereby, refraining from the tendency to raise exorbitant medical bills;
• Critical Illness Cover is also available. 

Benefits of Buying Individual Health Insurance Policies:

Many people prefer to buy health insurance that ensures an umbrella cover over the entire family; there are others who prefer to buy a health policy only for themselves. This is because paying for an individual health insurance plan has its own set of benefits. These may include:

• The individual alone enjoys all the benefits that the plan has to offer;
• This kind of plan is best suited for customers running high risks of health disorders;
• Individuals whose family members are already insured can buy this plan;
• Greater protection than that offered under family floater health insurance;
• Dependents can be later added to the plan, if and when required;
• Cashless claim settlement can be availed while buying this plan;
• No age restriction during policy renewal.

Exclusions Under Individual Health Insurance:

Though individual health insurance policies are more preferred than the family health cover plans, there are some exceptions to the policy that one must not ignore. These include:

• Most individual health insurance policies cover pre-existing disorders subject to a waiting period ranging from two to four years. This can be a cause of discomfort for those not willing to wait so long before availing the benefits of the policy;
• Expenses on prescription glasses, lens and hearing aids cannot be covered under this policy;
• Policyholders cannot claim cover for expenses met on dental treatment or procedures;
• Naturopathy treatment is treated as an exclusion in most individual health insurance policies;
• Customers prone to diseases including cataract, hernia, sinusitis, etc. must beware as they cannot claim cover for the treatment of these disorders during the first year of the policy.

Next, let us discuss the Family Floater health insurance plan in a similar fashion.