As healthcare costs rise in India, it is essential to have a health insurance plan to safeguard against any unforeseen medical expenses. In addition, health insurance plans provide financial security to individuals and their families in the event of hospitalisation or treatment for a critical illness.
This guide will highlight everything you need to know about health insurance plans for individuals, including their benefits, types, features, and how to choose the best health insurance in India.
Benefits of Health Insurance Plans for Individuals
The primary benefit of having health insurance is that it provides financial protection to individuals and their families in case of hospitalisation or treatment for a critical illness. It also covers medical expenses for pre and post-hospitalisation, ambulance charges, and day-care procedures.
Moreover, Section 80D of the Income Tax Act provides tax benefits for health insurance plans. Individuals have the option to avail a deduction of up to Rs. 25,000 for the premium paid towards their health insurance policy. In addition, senior citizens can claim a deduction of up to Rs. 50,000.
Types of Health Insurance Plans for Individuals
There are multiple kinds of health insurance plans available in India for individuals. Below are a few of the most popular ones:
Individual Health Insurance Plans: These plans are designed to cover an individual's medical expenses. They offer comprehensive coverage for hospitalisation, pre and post-hospitalisation, ambulance charges, and day-care procedures.
Family Floater Health Insurance Plans: These cover the entire family under a single policy. All members share the sum insured, and any member can use the policy up to the sum insured limit. It is an affordable option for families.
Senior Citizen Health Insurance Plans: These are designed specifically for senior citizens over 60. They offer coverage for age-related illnesses and come with higher sum insured options.
Critical Illness Health Insurance Plans: These plans cover critical illnesses such as stroke, cancer, heart attack, and kidney failure. The sum insured is paid as a lump sum on diagnosis of the illness, irrespective of the medical expenses incurred.
Features to Consider When Choosing the Best Health Insurance Plan
Now that we have covered the different types of health insurance plans, let's look at the features to be considered when choosing the best health insurance plan in India:
Sum Insured: It is the maximum amount the insurance company will pay for medical expenses in a policy year. Therefore, it is essential to choose a sum insured that is sufficient to cover your medical expenses.
Network Hospitals: The insurance company's tie-up with hospitals is crucial as it determines the availability of cashless hospitalisation. Choose a plan that has a wide network of hospitals in your area.
Waiting Period: A waiting period is when you cannot claim for certain illnesses or treatments. Before buying a policy, check the waiting period for pre-existing illnesses, maternity benefits, and other treatments.
Co-payment: Co-payment is the percentage of medical expenses you must bear out of your pocket. Some health insurance plans come with a co-payment clause. Choose a plan with a low or no co-payment clause.
Premium: It is the amount you pay for your health insurance plan. Choose a plan that offers comprehensive coverage at an affordable premium.
Factors to Consider While Opting for the Best Health Insurance Plan in India
Opting for the best health insurance plan in India can be overwhelming. Follow the below steps to make the process easier:
Assess Your Healthcare Needs: Consider your age, medical history, and current health status when choosing a health insurance plan. If you have a pre-existing illness, choose a plan that covers it.
Compare Plans: The features and benefits of different health insurance plans from different insurers should be compared. You can use online comparison portals to make an informed decision.
Check the Claim Settlement Ratio: This ratio is the percentage of claims which have been settled by an insurance company. Choose a company with a high claim settlement ratio as it indicates its reliability and customer service.
Read the Fine Print: Always read the policy document carefully before buying a health insurance plan. Pay attention to the terms and conditions, inclusions, exclusions, and any additional benefits.
Seek Expert Advice: In case you are unsure about which health insurance plan to choose, seek advice from a financial advisor or an insurance broker. They can help you understand the policy and suggest the best plan based on your needs.
Conclusion
A health insurance essential to ensure financial security in any medical emergency. Several types of health insurance plans are available in India, including individual health insurance plans, family floater plans, senior citizen plans, and critical illness plans. When choosing the best health insurance plan, consider the sum insured, network hospitals, waiting period, co-payment, and premium. Compare different plans, check the claim settlement ratio, read the policy document carefully, and seek expert advice.
