If there is one insurance policy that is a must have for everyone, it is health insurance. Simply understood, health insurance is a contract between the insurance provider and policy holder wherein the former agrees to cover the medical costs of the latter, in exchange of regular premiums. Health insurance policies are offered in two major categories: individual and for family/group.
Individual health insurance policy provides coverage for the medical needs of only one individual which is the policyholder. While group or family floater policies cover a group of people, like spouse, grandparents, children, etc. Read on to know more the key features of individual health insurance policies.
Features of Individual health plans
- These plans provide medical coverage for only the insured policyholder, based on the premium paid.
- While the coverage may vary from plan to plan, it usually includes pre- and post-hospitalization charges, surgery costs, doctor’s fees, lab tests and post-treatment care.
- The coverage is not definite and includes many exclusions, such as cosmetic treatments, pre-existing medical conditions, therapies, injuries caused due to self-harm or suicide attempts.
- Health plans also have a standard waiting period for before a claim can be made. However, some companies offer to reduce the waiting period if certain premium amount is paid.
- Health plans are also applicable for tax deductions under Section 80D of the Income Tax Act.
Benefits of individual health plans
- In an individual policy, the sum insured is not divided between multiple people – the insured alone benefits from the full coverage.
- Higher coverage is beneficial for people with higher health risks and medical ailments.
- There is no set limit on the maximum age for the renewal of the policy.
- Family members or dependents can also be added later to the plan.