Exploring the Advantages of Individual Health Insurance Plans


In today’s uncertain world, ensuring the security of one’s health has become a top priority. Individual health insurance plans emerge as a beacon of assurance, offering personalised coverage tailored to individual needs. Understanding the nuances and benefits of such plans including types of coverage, risks covered, benefits provided, claim record of insurer and so on – is required to make informed health insurance and financial planning decisions. 

In this blog, we at Chola MS Health Insurance delve into the advantages of individual health insurance plans and how to ensure you obtain the best health insurance plan to financially protect one’s health needs and future expenses. 

What is an Individual Health Insurance Policy?

Amidst the array of health insurance options, individual health insurance plans stand as solitary shields against medical uncertainties. Unlike family floater plans that cover an entire family under one policy, individual plans focus solely on the policyholder. These plans offer a fixed sum insured, catering to the specific healthcare needs of the individual.

How Does an Individual Health Insurance Policy Work?

When an individual opts for a health insurance plan, they enter into a contractual agreement with the insurer. In the event of a medical emergency, the insurer covers healthcare costs up to the agreed sum insured, subject to policy terms. Premium payments are made regularly by the policyholder to uphold the coverage.

What is Generally Covered and Not Covered in an Individual Health Insurance Policy?

Coverage under individual health insurance plans encompasses various medical expenses, including hospitalisation, pre and post-hospitalisation care, daycare procedures, ambulance costs, and domiciliary treatment. However, exclusions such as pre-existing conditions, dental, vision-related expenses, and alternative therapies may apply depending on the policy and insurer.

Benefits of Individual Health Insurance Plans:

  1. Comprehensive Coverage: Individual health insurance provides extensive coverage, ensuring financial preparedness for various medical eventualities, from consultations to surgeries.
  2. Financial Security: Protection against unexpected medical expenses offers peace of mind, preventing depletion of savings during emergencies.
  3. Tailored Solutions: Customisable policies cater to individual needs, considering factors like age, pre-existing conditions, and preferred healthcare providers.
  4. Cashless Hospitalisation: Partnering with a network of hospitals enables cashless treatments, eliminating the hassle of upfront payments.
  5. No Claim Bonus (NCB): Rewards for maintaining good health incentivise policyholders with increased coverage or reduced premiums.
  6. Lifelong Renewability: Assurance of lifelong renewability ensures continuous coverage, even in later stages of life.
  7. Tax Benefits: Eligibility for tax deductions under Section 80D of the Income Tax Act provides dual advantages of health protection and reduced tax liability. 

If you’re below 60 years old, you can get up to Rs. 25,000 deducted from your taxes. But if you buy health insurance for a senior citizen above 60 years, you can get up to Rs. 50,000 deducted.

Let’s say you’re under 60 and you buy a health plan for yourself and another for your senior parent. You can then get a deduction of up to Rs. 75,000.

If both your parents are over 60 and you pay for their health insurance, you can get a tax benefit of up to Rs. 1,00,000.

In conclusion, individual health insurance plans offer a plethora of advantages, making them the best health insurance plan for securing one’s health and finances. By understanding the workings and benefits of such plans, individuals can navigate the complex healthcare landscape with confidence and resilience.

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