A health insurance safeguards you from the financial hardships that may arise in case of a medical emergency. The market today is flooded with so many health insurance policies; however, individual health insurance plans remain at the forefront.
Let’s first understand what exactly an Individual Health Insurance Policy is…
An Individual Health Insurance is a separate health insurance policy that covers every member of the family. Therefore, every family member gets an individual sum insured. It is tailor-made for individuals, rather than groups.
Here is what makes these insurance policies important and beneficial to choose:
Individual health insurance policies offer a lot of flexibility when it comes to offering a range of insurance covers and premiums. This is how you can buy an insurance plan tailor-made to meet your and your family's needs. You can also automatically extend these benefits to your family members, depending upon the insurance policy you opt for.
2) Tax Benefits
You can avail tax benefits under Section 80D of the Income Tax Act, 1988 if you buy an individual health insurance plan. A deduction of up to INR 25,000 can be claimed for the premium that you pay every financial year. This deduction is applicable for Health insurance plans bought for yourself, your spouse and your children. Therefore, you can easily save a lot of taxes by the end of the financial year because life insurance plans with high premiums give a higher exemption.
3) Extended Coverage
Some individual health insurance plans offer extension to your immediate family members including your spouse and children. By paying a nominal hike in the premium, you can certainly add the desired family members. This is how, requirement to buy multiple insurance policies would be eliminated and therefore, yo save a lot on the cumulative health insurance premiums which you would otherwise pay in one year.
If you register a health insurance claim on one family member, it certainly does not affect the sum assured of other family members.
Since there is no connection of any group or employer, individual health insurance plans are easily portable. In case you aren’t too happy with the services of your existing health insurance company, you can easily opt for a new plan or buy one from a new insurer. IRDA, protects such rights. You also do not lose any accumulated benefits if you switch your health insurer. This is because, your new insurer is mandated by IRDA to offer you with the credit related to the waiting period in case of pre-existing conditions that you might have gained over the previous health insurer.
5) Cashless Facility
Every individual health insurance provider have a tie-up with a set of hospitals to avail cashless facilities. You simply have to flash the health cards offered by your insurer to avail this facility if you get hospitalized in any of the network hospitals. The health insurance company directly settles your medical bill with the hospital.
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