Individual health insurance policyIndividual health insurance policy is one of the three major types of health insurance plans, the other two being family floater plans and unit-linked health plan. The individual health insurance policy provides medical coverage to the only insured individual, i.e. the policyholder. Thus the benefit of this investment made towards such a policy is realized by only one person.
The coverage amount will depend on the age of the insured person, his/her medical history, and place if it is a big city. So will be the premium amount. Most of the individual health insurance plans cover pre-hospitalization charges for 30-60 days and post-hospitalization charges up to 90 days. Plus, it includes surgery costs, room rent, consultation fee, cost of tests and usually they come with lifetime renewal.
Benefits of individual health insuranceUnder an individual health insurance plan, the insured doesn’t have to share the coverage, unlike a family floater insurance plan, where the insured sum covers 5-6 members. What if along with you, another member of the family needs simultaneous medical care and thus backup provided by the family plan gets negotiated. With individual insurance, the policyholder will have a dedicated amount for own self.
For people with old parents, buying individual health insurance can be a smart move in terms of financial planning. Including old parents, to a family floater health insurance plan will push up the premium by leaps and bounds because older people are more prone to health issues. Instead of increasing the insurance cost for everyone, it is well recommended to buy an individual plan for self and senior citizen plan for parents.
Many employers and organizations provide medical insurance to employees. However, the same might not be all-inclusive. The insurance scheme of your employing organization might not cover maternity costs or might not be enough. To fill in such gaps, one can consider buying an individual health insurance policy with suitable add-ons. To add to the benefits, individual plans also provide tax benefits.
Suitability of individual health insuranceIndividual health insurance is best suited for people with higher possibility or risks of ailments and health issues. A person with higher health risks should stay covered with a dedicated fund. Furthermore, those who want the confidence of an assured sum rather than a floating amount can preferably avail an individual insurance plan.
Also, it is suitable for those looking for the provision of lifetime renewability, as most of the individual health insurance plans come with lifetime renewability. For young people joining the workforce with a family that is already insured, individual health insurance plans make an excellent choice.
Before buying a health insurance plan, consider all possibilities and ensure that you are comfortably covered. The decision to purchase individual health insurance plans should be in sync with your financial plans. The end purpose is to remain financially and thus mentally sound, in case of a medical emergency.
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The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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