Health is the real wealth you can own. Health is one such asset that human beings own which helps them to enjoy all other things. We live a fast-paced lifestyle where healthy living is just next to impossible. And so the need for personal or individual health insurance has arrived. The insurance contract gets the insured covered from numerous uncertainties that may arise in the future.
What is Health Insurance?
Health insurance is a contract that provides financial coverage for the medical expenses of the policyholder. These insurance plans reimburse the medical expenses, including surgeries, hospitalization, and treatment costs of the policyholders. Health insurance expenses under section 80D is exempted under the Income Tax Act of 1961.
Individual health insurance provides coverage only to the insured individual. The entire sum assured is only for one individual. The claim amount depends on the type of insurance plan chosen and the coverage amount. Individual health insurance should be bought by individuals who wish to have higher protection as compared to family floater plans. It covers the insured’s surgery costs, physician’s fee, and laboratory test expenses.
Why is it necessary to have individual health insurance:
- Cashless Claim Facility: Bharti AXA offers a cashless hospitalization facility at certain hospitals that fall under their network. Medical emergencies can arise at any time, and the cashless facility provided by Bharti AXA and other such insurance companies can be beneficial to the insured. Under this facility, the policyholders don’t have to spend anything extra for medical expenses incurred, provided those expenses are included in the coverage amount. This facility is offered only in the network hospitals impaneled with insurance companies and not in all hospitals. The claim amount will be settled directly by the insurance company to the hospital so the policyholder can be stress-free. This facility is a boon to policy holders in times of emergency.
- Hospitalization – Daily Allowance: Certain individual health insurance plans cover a certain specific daily allowance. The amount of daily allowance is pre-determined and can only be claimed if the insured is admitted to the hospital for a few days. The daily allowance expenses comprise room to rent, physician’s fees, laboratory test expenses, etc. If the insured is the only bread earner of the family, the allowance proves to be beneficial.
- High Health Risk Covered: Individuals having high health risk can benefit from individual health insurance plans as they are prone to be admitted to the hospital more frequently as compared to others. All expenses covered under the insurance plans make it easier for the insured as they are exempt from extra medical expenses.
- Tax Benefits: The premium charged on health insurance policies is exempted under 80 D of the income tax act for the policyholders. The exemption amount varies as per age and situation; Rs. 15,000 for individuals, Rs. 20000 for senior citizens, and an additional exemption of Rs.20000 is granted for dependent parents.
Health playing a crucial part in our lives shouldn’t be neglected. Individual health insurance can be renewed for a lifetime. It is suggested that individuals living on their own should have personal health insurance to keep themselves safe during the emergency. Health insurance will get all your expenses covered and promise you a healthy life.