Why is Having an Individual Health Insurance Plan Important?

The rising cost of medical care, combined with people's changing lifestyles, has resulted in a rapid rise in the number of people purchasing health insurance in recent years. In today's world, having the right health insurance has been extremely critical.

 

The younger years are a critical period in one's life because there is so much to deal with: workload, social pressure, family obligations, and so on. Health often takes a backseat in the due course of things. A stressful lifestyle is one of the reasons why a large portion of India's young population is vulnerable to various lifestyle-related health problems. Individual health insurance is thus a necessary investment. The insurance coverage will assist an individual in managing any medical emergency costs, reducing the strain on savings. If you're single and don't plan to start a family anytime soon, individual health insurance is a great choice.

 

Additionally, it is also the better choice for family members who need added protection.

 

What is Individual Health Insurance?

An individual health insurance is a plan that covers an individual person as opposed to a group (such as a group of employees covered by an employer group health plan) or a family. The amount of premium will be determined by the insured person's age, medical background, and other factors. Pre- and post-hospitalization expenses, surgery costs, room rent, appointment fees, and the costs of prescribed tests are all covered by most individual health insurance plans.

 

Why Individual Health Insurance Plan is Important?

If you do not have the obligation to protect any family members, for example, if your parents already have a health insurance plan and if you are single with no plans to start a family in the foreseeable future, an individual health insurance is a financially sound choice, and it ensures that medical issues do not become a financial burden to you.

 

If you have a family member that requires additional health care and there is a risk that his or her medical costs will surpass your budget, it is always a good idea to purchase an individual health insurance policy for them as it would be more effective from a financial and health standpoint.

 

The Benefits of Individual Health Insurance Plan

 

1. Coverage for Medical Expenses

The most important and primary reason we purchase health insurance is to protect ourselves from unexpected medical costs. It protects you from a financial crisis if you have a health problem. It relieves you of the financial burden of medical expenses, allowing you to concentrate on becoming healthier.

 

2. Cashless Claims

You can use the cashless benefit provided by your insurer in the event of a medical emergency or a situation where you are expected to be hospitalized. Under an individual health policy, a cashless claim facility offered by health insurance companies allows an individual to receive medical treatment without having to immediately pay for it at the hospital as the insurance company pays the hospital or nursing home directly on your behalf. However, this service is only available in the network hospitals that have been approved by insurance companies.

 

3. Allowance for Hospitalization

For each day that the insured is in the hospital, some insurance companies pay a specific allowance to the insured. This, however, only applies after the insured has spent a few days in the hospital. The number of days spent in the hospital is always pre-determined in the policy, and it may differ from one company to the other.

 

4. Tax Benefits

Health insurance premiums are also tax deductible. Under Section 80D of the Income Tax Act, you can save taxes upto Rs.42,744 with your health insurance premiums.

 

Conclusion

It is advisable to purchase individual health insurance to protect your health and pocket. The policy has many advantages and optional covers to choose from such as customizing the policy as per your needs. You must read all documents and exclusions to find the best suited plan for yourself.