Health

Health Care Insurance: Benefits Of Having Individual Health Insurance Coverage

According to recent statistics, medical costs in India are growing twice as quickly as total rising prices. As a result, individuals in their late 40s, as well as those in their mid-twenties, have begun to recognize the need of having health insurance.

A family insurance plan, on the other hand, is probably more suited to somebody in their thirties and forties with a household, whilst a bachelor or individual health policy is appropriate for unmarried people in their twenties. 

However, what exactly are personal health policies? How would they function? Should you think about getting one? This post addresses all of these essential questions, as well as others.

Health Care Insurance: Benefits Of Having Individual Health Insurance Coverage

What is an Individual Health Insurance Policy?

While there are numerous health insurance plans India is Endowed, they may be roughly classified as family floater plans and individual policies. A family insurance plan protects a family’s health, including wives, minor children, and old parents. There is indeed a single amount promised that is distributed among all members of the family. A family insurance plan is the inverse of a single policy health insurance. 

An individual health insurance coverage plan, as the name implies, is bought for a single person. The plan has a fixed amount guaranteed, up to which the insurer would pay the policyholder’s healthcare expenditures. The insurers use criteria such as the policyholder’s age, current health status, medical history, and location when computing the premium for such individual policies.

How Does An Individual Health Insurance Policy Work? 

Once you get individual insurance, you enter into a contract with the insurer. The agreement specifies that the insurer would cover your healthcare costs up to the sum covered and in accordance with the terms of the policy. In exchange, you should pay the premium on a regular basis. Assume you’ve acquired the best health insurance coverage with an amount covered of Rs. 5 lakhs. 

If you really are hospitalized after acquiring the insurance, the insurer is obligated to pay your hospital expenses in accordance with the terms and conditions of the agreement. Let’s say the hospital cost was Rs. 2 lakhs. Your insurer will pay the doctor’s charge, and your annual sum covered will be lowered to Rs. 3 lakhs (total sum insured of Rs. 5 lakhs- the hospital bill of Rs. 2 lakhs that will be paid by the insurer on your behalf).

Various Types Of Individual Health Plans Available In India

Individual or single health plans are further subdivided into the following categories of health care insurance:

  • Critical Illness Protection

If you’ve had a family background of severe health issues, you might think about getting critical illness insurance, which encompasses a broad range of risky diseases.

  • Health Insurance for Senior Citizens

These policies are specifically intended to meet the healthcare demands of persons over the age of 55. These plans cover a variety of health issues that elders are much more likely to experience. These plans are available to anybody between the ages of 55 and 80.                                                                                                                                         

  • Accident Insurance for Individuals

In India, road accidents are extremely prevalent. If you travel a lot for personal or business purposes, a professional liability insurance coverage may be a good option. These policies are designed to protect consumers from accidents. In most cases, the policies cover the policyholder’s hospitalizations and hospital expenditures in the case of an accident.

Health Care Insurance: Benefits Of Having Individual Health Insurance Coverage

How Is The Insurer Going To Pay Your Bills?

When you get health insurance online and require medical attention after a few months, you must make that claim with your insurance provider. This could be accomplished in one of two different ways: cashless claims or compensation demands.

The insurance will immediately reimburse your hospital bills with the hospital when you file a paperless claim. In the event of compensation disputes, you must first settle the medical expenses yourself before receiving reimbursement from your insurance. Whereas the paperless option is more efficient, it is only accessible at the company’s medical centers. You would be forced to utilize the reimbursement facility at non-network hospitals.

What is NCB or cumulative bonus in Health Insurance?

There is a progressive reward in personal health insurance policies, much as there is a No Claim Bonus or NCB in car insurance. However, the operation of the NCB in the case of health insurance differs from that of car insurance. There in the case of automobile insurance, the number of claim-free years entitles you to a reduction on the contract prices.

In the case of health insurance, the renewing payment is not decreased, but still the fiscal policies amount covered is raised by a fixed percentage for each claim-free year. Nevertheless, a few insurance companies use the premium discount technique for NCB in health insurance as well. 

The total insurance is raised by 5% to 10% for each claim-free year, depending on the insurance you choose. However, insurers are not permitted to provide a combined incentive of much more than 50% regardless of a policyholder’s overall number of claim-free years.

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