Benefits of Individual Medical Insurance – A Guide to Why You Should Choose it
Across India, healthcare costs have been on the rise and thats make individual medical insurance more important for you. Although, medicine and healthcare is more affordable in India than in other countries, which is leading to a rise in medical tourism. In fact, for average Indians, costs have risen so high, that people are being forced into debt for treatments. To make healthcare more feasible for Indians, the best option is Individual Medical Insurance. You must want to know the benefits of Individual Medical Insurance, so here we are-
A comparative table examining the rise in health care costs between 2007-2012. (Image Credits: Medimanage)
With patients being charged for everything from healthcare facilities to medication, this unprecedented rise in medical expenses has made health insurance a necessity today. This is especially true for private hospitals, which leverage their brand equity and the skill of their doctors to charge higher for overheads.
The sorry state of the public hospitals sends large numbers of patients to private hospitals where costs are prohibitive. But at the end of day private healthcare is the only real option.
The Importance of Individual Medical Insurance
Today, if you want the best treatment possible, the only thing you can do is ensure you have adequate coverage. Given how common lifestyle ailments are these days, and how expensive healthcare is, insurance is really the only option to ensure you’re able to manage your health and finances effectively.
As with all necessities, we don’t become aware of the importance of medical or health insurance till we absolutely need it. It’s best to get a good plan as early as possible so that you don’t have to worry about finances during an emergency.
There are different kinds of individual medical insurance that are available today, so it’s important to go over what the plans entail so that you can choose one that suits you best. Among these types is individual medical insurance.
What is Individual Medical Insurance?
Individual medical or health insurance is purchased by a person for himself, and covers just that one individual. The entire amount of the insurance is then allotted to just that one person and is not transferable. This means that only the policyholder can claim the benefits of the insurance.
Usually these policies are bought for a single person, but you could also choose to buy each member of your family individual policies.
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Benefits of Individual Medical Insurance
Now insurance as a general rule provides you a significant measure of financial security, especially when you have medical emergencies or major accidents. It gives you a measure of control over the quality of your health care, ensuring that you won’t be left ailing in a public hospital’s waiting room.
Most insurance plans cover a majority of your in-patient costs, including tests, scans, ambulance, hospital rooms and so on. More often than not, hospitals manage to provide treatment that you won’t need to personally pay for by directly contacting your insurance company. This is what is called Cashless hospitalization.
Apart from all these, there are other benefits of individual medical insurance.
- Tax Deductions: Under section 80D of the Income Tax Act, purchasing health insurance allows you to avail tax deductions up to INR 55,000 per year, particularly if you have also purchased it for your parents, spouse and children.
- Full Amount for Individual: With an individual medical insurance policy, the entire amount that you are eligible to claim is available to you personally. This is unlike a floater policy, where if one beneficiary avails from the policy, then all the other beneficiaries will only have the remaining amount for their expenses.
- No Age Restrictions: Medical insurances need to be renewed yearly, and group policies usually have an upper age limit when it comes to renewals. However, with an individual insurance policy, this is not so. You can renew your policy no matter your age or personal health.
- Can Be Purchased for Anybody: This policy can be bought by you for your parents, in-laws and other extended family members unlike family policies where usually only your immediate family can be included.
For Whom Is Individual Medical Insurance Ideal?
The popularity of family floater plans may indicate that those are the best kind of medical insurance plans in the market, but the truth is that there is no ‘best’ plan. There is only the plan that is right for you and your family and suits your needs the best.
Individual insurance plans have a number of advantages, and depending on your financial and familial situation, may make more sense than a family floater plan.
For instance, there are a number of people for whom such a plan would be ideal.
- Singles: Being young and single does not mean that you do not require health insurance. Group insurance policies only work out cheaper if you’re buying insurance for multiple people anyway. Individual insurance policies are perfect for people who are single because it meets their medical expenses and does not need you to include other people to avail all the benefits.
- Older People: Family plans make sense for young families, below 35 years, with very small children who can be easily added to the policy. For older families with higher medical expenses, individual medical insurance is more suitable. This is because older families have more health issues, so even if all family members need to avail insurance at the same time, they will all be covered individually.
With the rising healthcare costs, individual medical insurance is a much needed investment that will ensure that you get quality medical care at the right time. With individual medical insurance you can be certain that you’re covered in the case of any unexpected medical expenses anytime anywhere.