Individual Health Insurance: Buy Online, Benefits

The COVID-19 pandemic has been an epitome of how one should plan their health insurance portfolio to get the maximum coverage possible. People have realized the importance of Individual Health Insurance and the financial implication of not having enough or incomplete insurance coverage when it comes to a medical emergency. The following article gives an insight on things related specifically to Individual Health Insurance plans and how one should go about securing their finances in an emergency situation. Take a look:

What is Individual Health Insurance?

An Individual Health Insurance plan offers financial coverage to a single person i.e. the policyholder in case of health issues. Usually, the plan covers the cost of pre and post-hospitalisation, hospitalization, diagnostic tests, etc. Individual Health Insurance is one of the many types of health insurance plans available in the market.

Individual Health Insurance

Types of Single/Individual Health Insurance Plans:

A health insurance plan is one of the few types of insurances that can be highly customized to suit individual needs. Since it is a good idea to be covered under various health insurance policies, one can choose from the following plan types to get maximum coverage:

  1. Individual health insurance basic plan.
  2. Individual health insurance with maternity coverage.
  3. Individual health insurance under the employer’s insurance plan.
  4. Individual health insurance for a critical illness.
  5. Individual health insurance with top-up and super top-up coverages.

Which is Good to Know Details about Individual Health Insurance?

All types of health insurance plans offer different coverages. Some offer a group benefit while others offer coverage for a specific illness. One should know the following details about Individual Health Insurance before buying an insurance policy:

  • Individual Health Insurance covers only one person.
  • The plan usually has a policy period of one year.
  • An individual plan can cover daycare services like minor surgeries for the policyholder.
  • The plan can provide daily cash of a pre-approved amount which can be used to avail medicines or other expenses.
  • The sum insured of an Individual health insurance plan plays a vital role in deciding the premium of the policy.

Who Needs an Individual Health Insurance Plan?

The only answer to who needs a health insurance plan is that every person on Earth needs health insurance to avoid financial losses in case of a medical emergency. People today have seen the ill effects of a pandemic first-hand. The quality of healthcare services in the country was challenged during the COVID-19 wave. Health insurance can plan a major role in availing the best medical facilities available. Thus, it is not only important that you buy health insurance but that you create a solid financial safety net with an insurance portfolio that includes a strong Individual Health Insurance plan.

Benefits of Buying Individual Health Insurance Policy Online:

Buying an insurance policy offline or the traditional method is more time-consuming as compared to the modern online method. Apart from this, the online process provides the following benefits:

  1. The main benefit of buying an individual health insurance policy online is that you can compare policies from various insurers that offer similar insurance plans.
  2. You can buy an insurance plan online from almost anywhere where there is an active internet connection.
  3. You can view the user reviews and ratings of insurance companies on social media handles to understand their credibility.

Thus, buying individual health insurance policies online can give you a host of benefits.

Disadvantages of Individual Health Insurance:

There are no disadvantages to buying a health insurance policy per se. The only thing one should consider is buying useful coverages and not go overboard while selecting a plan. For example, choosing an appropriate sum insured for an individual health insurance policy will be fruitful at the time of hospitalization. Opting for a very high amount will increase the premium while opting for a lower amount will prove to be insufficient in an emergency. Choose the coverage after considering your lifestyle and financial conditions.

Eligibility Criteria for Individual Health Insurance:

Almost everyone is eligible to buy a health insurance policy. Usually, health insurance companies categorize individuals based on their age and medical background. The entry age for an Individual plan is 18 year and the exit age could be 65 to 70 years depending upon the terms of the insurance company. Parents can buy a separate health insurance policy for their children below the age of 18. There are certain health insurance plans that specifically cater to the needs of senior citizens, however, these are more expensive as compared to health plans for someone who is in a lower age group. This is why it is advised that a person should buy an individual health insurance plan as early in life as possible.

Documents Required to Buy Individual Health Insurance:

Usually, your insurance companies will ask for the following documents when reviewing your application for buying an individual health insurance plan:

  • Age proof
  • Address proof
  • Photographs
  • Medical history

You may have to undergo some basic medical tests to apply for an individual health insurance policy.

Individual Health Insurance Premium Calculator:

Premium Calculator is a simple online tool that helps you find the approximate cost for buying a health insurance policy. You can find this tool on any health insurance website. You can use it by entering your details and selecting plan type to know the approximate premium for Individual health insurance policy.

Inclusions in Individual Health Insurance Plan?

Inclusions are one of the most important aspects of a health insurance policy. These situations help you understand when you can raise a claim against your policy. Here are the general inclusions or coverages of an Individual Health insurance policy:

  1. In-patient Treatment: This covers the cost of hospitalization for the policyholder. Things like room rent, nursing charges, ICU charges, etc. are included under the in-patient treatment.
  2. Day-care procedures: Minor surgeries like cataract, tonsil removal, or similar procedures that do not require more than 24 hours of hospitalization are covered under day care procedures.
  3. Pre-hospitalization: Some surgeries or medical issues require a patient to avail treatment before getting hospitalized. This cost of such treatments can be availed under health insurance.
  4. Post-Hospitalization: The cost of follow-up treatment is covered under individual health insurance plans as per the terms and conditions of the insurance company.
  5. Domiciliary Treatment: The cost of receiving treatment at home can be covered under special circumstances.
  6. Organ Donation: The cost of medical treatment related to donating an organ can be covered under health insurance. 
  7. Ambulance: The cost of hiring an ambulance will be borne by the insurance company if this coverage is available in your health insurance policy.
  8. AYUSH benefits: The cost of availing Ayurveda, Unani, Sidha or Homeopathy treatment can be claimed if your insurer allows this coverage.
  9. Daily cash benefit: This amount can be used to buy medicines or other things as required by the patient.
  10. Maternity and newborn coverage: Some health insurance plans provide coverage for the cost of childbirth and insurance coverage for the newborn baby.

Exclusions in Individual Health Insurance Plan?

Every insurance company has a set of situations where the policyholder cannot raise a claim. These situations are called exclusions. Here is a list of exclusions of individual health insurance policy:

  1. The cost of treating intentional injuries in attempting suicide.
  2. Injuries arising out of taking part in an adventure sport.
  3. Medical attention required because of taking part in criminal activity.
  4. The cost of cosmetic and dental surgeries unless required due to an accident.
  5. Health insurance does not usually cover the cost of treatment for infertility.

Difference Between Family Floater and Individual Health Insurance:

Here is a table differentiating between Family floater and individual health insurance plans:

Individual Health InsuranceFamily Floater
Covers one person.Covers multiple people related to the policyholder.
The sum insured is used by the policyholder.The sum insured is shared among all the listed insured persons.
Separate individual health insurance policies cover children and senior citizens of the family.Children and senior citizens both can be covered under the same plan.
Tax benefit can be availed on one plan at a time.Tax benefit can be availed on plans with senior citizens.

Difference Between Group and Individual Health Insurance:

Here is a table differentiating between Group and individual health insurance plans:

Individual Health InsuranceGroup Health Insurance
Covers one person.Covers multiple people usually unrelated to each other.
The sum insured is used by the policyholder.The sum insured is separate for each insured person
Separate individual health insurance policies cover children and senior citizens of the family.Children and senior citizens both can be covered under a group plan.
Tax benefit can be availed on one plan at a time.Tax benefit usually cannot be availed with a Group health insurance plan.
The policyholder has control over his/her individual health insurance policy.The insured people usually do not have control over a group health insurance policy.

Tax Benefits Of Individual Health Insurance:

Certain tax benefits can be availed under section 80D of the Income Tax Act. A benefit of Rs. 25 thousand can be availed as per the current year’s rules while filing income tax. This is for an individual health insurance policy. 

For those who have bought Family Floater plans in which parents are covered, an additional amount of Rs. 25 thousand can be claimed under tax benefits.

Frequently Asked Questions:

The following are questions and answers related to Individual health insurance policy:

Does an individual health insurance plan come at a lower price?

The cost of an individual health insurance policy depends upon the list of inclusions and terms & conditions of a health insurance company. One can reduce this cost to an extent by renewing the policy on time and avoiding claiming for minor incidents.

How to save on health insurance for a single person?

One can consider doing a couple of things while trying to save money on an individual health insurance policy. For example, you can improve your lifestyle to reduce the number of claims. Consider quitting smoking if you are a smoker. Secondly, you can compare various similar health insurance plans to understand the lowest priced policy and its inclusions.

Which plan is best for a health insurance plan for an individual?

A policy that offers an all-round coverage is considered to be the best health insurance plan. One can buy such a plan by taking into account the current lifestyle, medical history, and financial status. Then choose a plan that suits your requirements.

What is meant by an individual health insurance plan?

An individual health insurance plan offers health insurance coverage to a single person. The sum insured of the policy is not shared among other people and can be used by the policyholder. The policyholder can enjoy certain discounts if a claim is not raised during the policy period.

How can I buy individual health insurance online?

You need to select a digital-first insurance company like Acko to buy health insurance online. Visit the insurance company’s website and search for Individual health insurance plans. Enter your details and review coverages. Next, take a look at the exclusions and other terms & conditions. Also, read the fine print thoroughly before making the final payment. Don’t hesitate to get in touch with the insurance company if you have any doubts related to their insurance policy. If not medical tests are required, then you might get your health insurance policy instantly at the registered email address.

Does individual health insurance come with maternity coverage?

All individual health insurance plans do not come with maternity coverages. You need to buy a separate cover with the base plan. Remember that there could be a waiting period for availing maternity benefits. Some insurance companies may enforce a waiting period of a few months to a few years of these benefits. Contact the insurance company to know more about maternity coverage.

How to find the best health insurance companies for individuals?

You can easily search for the best health insurance plan when you intend to buy it online. This way you can compare policies and take a look at the social media handles of insurance companies for understanding the credibility of the company. Choose a plan that is most suitable for your requirements. Next comes the premium amount. Select a plan that has all the benefits and is priced lower than other plans with similar coverage.

How are individual health insurance rates decided?

The premium rate for buying an individual health insurance policy is decided based on the medical history of the applicant, claim history (if applicable), the scope of coverage, the insurance company, etc.

Is group health insurance cheaper than individual health insurance?

A group health insurance policy is usually offered by an organization to a group of people. For example, Employee health insurance benefits. Here usually the employer pays the premium. On the other hand, an Individual Health insurance policy is purchased by a person, and he/she pays the premium. So yes, a Group Health Insurance plan can be cheaper compared to an Individual policy.

Is it a good idea to buy multiple healthcare insurance plans for individuals?

Absolutely yes. As per the new rules, a policyholder will be allowed to raise a claim with multiple insurance companies for one claimable event for example cost of treatment arising out of an accident. This is how it works. Suppose Mr A has bought two separate health insurance plans, and he met with an accident. The first insurance company paid 80% of the total cost of treatment. Mr A can approach the second health insurance company to make a claim for the remaining 20% of the expenses. Thus, it is a good idea to build a solid health insurance portfolio by buying multiple plans.