About Individual Health Insurance
If something untoward happens to you, like a serious illness or a car accident, hospital expenses can quickly pile up. In such an event, an individual health insurance policy can come to your rescue by taking care of the staggering expenses.
Individual health insurance is the policy purchased by an individual for himself or his family based on his needs and budget. Such a policy covers all pre and post hospitalisation expenses, including the charges for diagnostic tests, ambulance, and room rent. Apart from injury due to accidents, individual health insurance also covers pre-existing diseases and critical illnesses subject to conditions of the waiting and survival period.
Moreover, it provides a cashless facility when the treatment is done in any of the network hospitals, and even for non-cashless treatment, the amount is reimbursed after a successful verification process.
All in all, individual health insurance helps you save money on hospitalisation expenses, doctor's visits, prescription drugs, and other medical services.
What Is Individual Health Insurance?
Individual health insurance offers medical coverage for a single individual, wherein the sum insured depends on the specific healthcare needs of that individual. The premium payable depends on varied factors, including the age of the insured person, his medical history, etc.
In individual health insurance plans, the benefits are extended to an individual only, therefore the person becomes eligible for individual sum assured rather than a floating sum assured. Such a plan is best suited for individuals looking for higher protection than a family floater plan and for those with greater health risks.
Benefits of Individual Health Insurance
Coverage offered for pre and post hospitalization charges.
Includes hospitalization expenditures and medical expenses like surgery, doctor’s consultation charges, hospital room rent, and diagnostic tests.
Coverage offered for critical illnesses.
Tax deductions available under Section 80D.
Key Features of Individual Health Insurance
Individual health insurance offers coverage only for the insured individual, wherein the medical costs of the insured are covered based on the premium paid. Key features of this insurance include:
Covers Pre and post hospitalization expenses.
Covers surgery costs, physician’s fee, room rent, and diagnostic tests.
Covers critical illnesses.
Availability of cashless facility for claim settlement.
Renewal applicable for a lifetime.
Tax deductions available under Section 80D.
Advantages of Individual Health insurance plan
Health is one of the most crucial factors that have a direct bearing on your happiness. But since everyone experiences some breakdown in health at some point or the other, it is essential to stay prepared for it. Notably, in today’s time, when all kinds of health problems like cancer, tuberculosis, heart attacks have become so common, having a health insurance plan is a must.
The various advantages offered by Individual Health Insurance plan are as follows-
1. Provides Cashless Facilities
Every insurer has a list of network hospitals. So, whenever you as a policyholder get admitted in any of these hospitals, you can avail cashless facility for your hospitalisation. This means that the insurer will settle the payments due with the hospital under your cashless health insurance.
2. Covers Pre and Post Hospitalization
Under this policy, you will also receive financial coverage for all expenses related to pre and post-hospitalization. This may include diagnostic tests and medication, which an individual may need, before or after hospitalization. However, the number of days, before and after admission that is included in the ambit of this coverage differ from insurer to insurer. We offer pre-hospitalization coverage of up to 60 days, which extends for up to 90 days post-discharge.
3. No Claim Bonus
In case, you do not make any claim during the policy period; then you shall also receive a no claim bonus. You can utilize this bonus money to pay off the next premium amount.
4. Tax Benefits
Another great benefit of health insurance is that your premium payments towards the policy will reduce your taxable income. This will help in reducing your tax liability. Individual health insurance is subject to Section 80D of the Income Tax Act which allows a tax deduction of up to ₹25000 on the premium paid towards such policy.
5. Medical Checkup
Under this policy, you can even go for medical tests, which will help you avail tax deductions. Under section 80D, expenses incurred on health checkups will be covered up to ₹5000, which means that along with the premium, costs on medical checkups will also reduce your tax liability by ₹5000.
Individual health insurance policy will thus, provide you a comprehensive cover for everything from medicine and drug costs to cost of medical procedures. With all these benefits together, it ensures that you have excellent preventive healthcare benefits by your side along with financial stability at the time of a medical emergency.
So, buy individual health insurance and reap all the benefits.
Documents Required for Individual Health Insurance
For individual health insurance, you need to provide a few documents, such as:
• Age Proof:
- Aadhaar card
- PAN card
- Voting ID
- Driving license
- Birth certificate
- Passport
• Identity Proof:
- Aadhaar card
- Voting ID
- PAN card
- Passport
- Driving license
• Address Proof: While getting covered under an individual health insurance policy, you are required submitting your permanent proof of address. Any of the following documents can be submitted for the same:
- PAN card
- Passport
- Aadhaar card
- Driving license
- Electricity bill
- Ration card
• Medical Check-up: Sometimes, individual health insurance policies might require you to undergo a medical check-up. In such a case, you will be required submitting the reports having the results of the mentioned tests.
•Passport-Size Photographs
How to Apply for Individual Health Insurance?
The process of applying for an individual health insurance policy involves the following steps:
Log on to the insurance company’s website.
Click on the button advertising, “buy health insurance.”
Enter all the details like name, date of birth, city of residence, email Id, annual income, etc. Once the details are filled click on the “Submit” button.
Thereafter, a health insurance plan that is best suited to your requirements will be displayed.
Select the sum insured and the tenure that you require.
Once, you know how much premium you will require to pay for the given sum insured, click on “continue buying process.”
To process your purchase, a customer service representative will get in touch with you.
Finally, make an online payment through your debit card/credit card/bank account, etc.
If you prefer the offline buying process, you can visit the insurance company’s branch, where you can get all the information regarding the benefits, features and the premium amount of your individual health insurance policy.
Individual Health Insurance Claim Process
The first step to file a claim is to inform the insurance company. For this, you can contact the company on their toll-free number.
Cashless Claims:
At the time of hospitalisation, you must submit the duly filled claim form that the hospital provides you. You can also download the form from the insurance company’s website. The hospital then sends your reports and the claim form to your insurance company.
If the claim is approved, the hospital is directly paid by the insurance company as per your eligible sum insured.
Reimbursement Claims (At Non-network Hospitals):
Post-hospitalization, you must submit the filled up claim form to the insurance company along with receipts and bills of medical treatments, reports, etc.
In case of claim approval, the insurance company will reimburse you based on your eligible sum insured.
Who Should Buy Individual Health Insurance?
Individual health insurance is best suited for:
Individuals who wish to benefit from the comprehensive sum insured instead of floating sum insured.
Individuals with greater health risks.
Individuals whose family members are already insured.
Individuals who are looking for higher protection than a family floater health policy.
Individuals looking for health insurance where they can renew the policy without having to worry about the maximum applicable age limit.
How Many Claims Are Allowed in A Year?
Generally, you can file multiple claims for an individual health insurance policy. However, the claims will be covered depending upon the amount of sum insured and the scope of coverage. Simply put, during the year, unlimited number of claims are allowed, but you can get coverage up to the amount of sum insured only.
Is there any income tax exemption under Individual health insurance?
Premium paid on health insurance which is in your name or that of your spouse, parents or dependent children, is deductible under Section 80D of the Income Tax, 1961, up to the limit of Rs.25,000.
What if I want to renew individual health insurance with add-on covers?
At the time of policy renewal, you can easily buy add-on covers to increase the scope of your coverage, over and above the base cover. Click on the renewal link provided, choose the add-on benefits you want and make the payment online.
Is OPD benefit covered under Individual Health Insurance?
Yes OPD treatment is covered under your health insurance policy at an additional premium. It is an add-on that covers doctor consultation fees, prescribed medicines and diagnostics.