There are many general insurance companies in India which offer health insurance policies. Each of these companies offers more than one type of health insurance policies in India. In other words, there are many types of health insurance policies available in the market – family health insurance, individual health insurance, critical illness insurance, group health insurance, etc.
Under a family health insurance plan, while most of the general insurance companies cover only couple and their two dependent children; you will also find some companies who provide complete family cover – wherein dependent parents are also included in the policy. This means that in a single policy you can cover your spouse, two dependent children and your parents.
On the other hand, an individual health insurance policy, as the name suggests, covers only an individual. In family health insurance, same insured amount covers all the family members, whereas, the sum insured in an individual health insurance will cover only one individual – the insured.
However, one can buy an individual health insurance policy for each family member, with separate sum insured amount assigned to every individual. In case, you have a family member who needs extra health coverage and chances that his/her medical expenses may exceed, it is always advisable to buy an individual health insurance policy for him/her. Doing so will prove to be more beneficial from both the perspective - monetary and health.
Benefits of individual health insurance:
There are many advantages of having individual health insurance policy. Take a look at some of the major benefits listed below:
Coverage for medical expenses:
The most important and main reason why we buy health insurance is to stay protected against unexpected medical expenses. It protects you to a financial crisis when you are facing a health issue in life. It relieves you if the burden of the medical expense so that you can focus of recovering well.
Cashless Claim Service:
In a unforeseen event of medical emergency, or situation where you are supposed to be hospitalized, you can avail the cashless benefit provided in your policy. Cashless hospitalization facility offered by health insurance companies, under an individual health policy, allows an individual to avail medical treatment without paying for the same to the hospital. However, this facility is available only in the hospitals empanelled with the insurance companies. Under cashless hospitalization, the insurance company settles claim directly to the hospital / nursing home.
Hospitalization Daily Allowance:
Some insurance companies pay a specific allowance to the insured for each day he/she spends in the hospital. This, however, is applicable only after the insured has already spent some days in hospital. The number of days spent in hospital is always pre-decided in the policy and may vary from one company to other. If you are the primary earning member in your family, such an allowance proves to be very beneficial at the time of emergency.
The premium paid on a health insurance policy is eligible for deduction under Section 80D of the Income Tax Act. The amount of deduction available is up to Rs 15,000 for individuals or Rs 20,000 for senior citizens (aged above 65 years). Additionally an amount of Rs 20,000 is also available for exemption towards premium paid for dependant parents.