Health Insurance for Self-Employed Individuals: What You Need to Know

A Guide to Health Insurance for a Self-Employed Individuals

A health insurance plan for self-employed individuals will secure their hard-earned savings by providing coverage for medical expenses due to illness and medical emergencies.

As a self-employed individual, you can either opt for an individual health insurance plan or a family floater health plan covering your family, which might help during unforeseen hospital expenses. You could consider buying health insurance as a self-employed individual for peace of mind and financial security. Your health insurance plan will assist you in getting the necessary medical care in times of need.

Understanding Health Insurance Options

Everyone should consider buying health insurance, regardless of their job profiles. Group health insurance might be available to those working in the public and private sectors. Self-employed individuals, however, face a different situation.

Being self-employed may require you to work longer hours, which could be damaging to your health. Due to this, it is essential that you consider obtaining health insurance to secure yourself in case of a medical emergency. An individual health insurance policy is one of the option  if you plan to cover yourself, and if you have a family and want to include them in your health insurance coverage, you can also choose a family floater policy.

Benefits of Health Insurance for a self-employed individual

Access to tax savings

You must pay income taxes based on your yearly income. However, you can claim your tax deduction under Section 80D of the Income Tax Act of 1961 by using health insurance coverage.

Savings are protected

Your savings will determine your future lifestyle as a self-employed person. In such cases, acquiring health insurance coverage guarantees that your savings are protected from significant medical occurrences. As a result, you will receive substantial funding to cover your medical bills in exchange for consistent premium payments made periodically, which will save the majority of your savings.

Protection from medical inflation

As healthcare services grow efficient and sophisticated, they continue to get pricey with cutting-edge medical technologies and their advancements. This might affect your financial stability , despite the savings that you have set aside. So, consider buying health insurance to secure yourself from unexpected medical emergencies.

Type of plan

Choose between an individual or family floater policy based on the number of people you want to cover.

Coverage

Check the sum insured and the covers such as ICU, room rent, emergency ambulance, day care treatments, etc

Availability of add-ons

To increase the coverage of your health insurance plans, you can add extra Add-on features

Therefore, it is essential to confirm the list of  add-on covers the insurer includes with the plan.

Premium Amount

Consider comparing the premiums for several health insurance plans and select the one that best meets your needs and budget.

Staying Insured

Every health insurance plan has a Policy term of one, two, or three years, following which, it must be renewed. The insured person might lose all collected benefits, including waiting period benefits, if the insurance is not renewed on time. Insurance companies also provide a grace period to renew the policy that varies from company to company.

Renewal of health insurance is simple. The steps listed below can be used to renew medical insurance coverage online through the insurer’s website.

• Visit the insurance company’s official website and click on renewing health insurance
• Type in your registered mobile number,health insurance policy number and other required details
• Verify the terms of the insurance and the renewal premium
• Use your credit/debit card or online banking to make the payment
• During the plan’s renewal, look for any changes in the Terms and Conditions

Types of Health Insurance Plans for Self-Employed Individuals

Individual Health Insurance

This type of policy is designed for a single individual and customized according to the individual's health requirements. It is considered best for all those individuals who want personalized coverage. Premium charges are calculated according to age, health condition, and sum insured.

Family Floater Plans

The family floater plans cover multiple family members under a single sum insured. This is a cost-effective option for self-employed individuals with families. Further, it is flexible, as the sum insured can be utilized for any family member according to their needs.

Critical Illness Insurance

This single premium cover protects against major diseases such as cancer, heart attack, or stroke. It pays out an overall sum at the time of diagnosis and can be used for treatment or recovery costs.

Top-Up Plans

Top-up plans provide coverage over and above the initial deductible amount. Typically, top-up plans are cheaper than regular health insurance and can be availed by those who want better coverage without paying huge premiums.

Preventive Health Plans

These plans focus on preventive health care measures, such as routine check-ups, vaccinations, and wellness programs. They encourage healthy living and catch potential health issues early.

How to Choose a Health Insurance Plan

1. Coverage Amount

Determine the amount of coverage you require based on your age, health conditions, and family size. A higher sum insured is always advisable for persons with dependants.

2. Network Hospitals

Verify the insurer's hospital network. Ensure that all major hospitals in your locality offer cashless treatment options.

3. Pre-existing Waiting Periods

Most plans will have waiting periods for pre-existing conditions. Ensure you understand them so there won't be a surprise during claims.

4. Costs of Premiums

Compare the premiums of many plans, but remember to check what is covered. Low premiums sometimes have inadequate coverage.

5. Co-payment Clause

Some policies provide a co-payment, meaning the insured pays a percentage of the claim amount. Review how much you can afford to cover them in medical emergencies.

6. Additional Benefits and Riders

Request additional benefits, such as maternity cover, critical illness riders, or daily hospital cash allowances. It just adds more value to your policy.

Buying Health Insurance for the Self-Employed

Step 1. Researching

Start with comparing various health insurance policies. Use online comparison tools to compare policies based on cover, premium costs, and customer reviews.

Step 2: Assess Your Health Needs

Reflect on your health status and that of your family. If family members have pre-existing conditions or diseases, use that information to choose a plan that will cover you well.

Step 3: Proposal Form

Fill in the proposal form with adequate information about all your needs.

Once you have selected a plan, you fill out the health insurance proposal form. Ensure that all the details you have filled out are correct to avoid any problems while you are handling your claims.

Step 4. Read the Terms and Conditions

Read your policy document very carefully. Please ensure that you understand each and every inclusion, exclusion, and term in great detail so that you will be clear on the entire scope of what that policy provides for you.

5. Complete Payment

You should choose the mode of payment that suits you best—most insurers accept online payment. Ensure you receive a copy of the policy after paying for it.

Claim Process for Self-employed Individual

1. Notify the Insurance Company

Inform them as early as possible when you are admitted to the hospital or are undergoing medical treatment. Most companies have a different helpline number for claims.

2. Documentation

Collect all the hospital documents, including prescriptions, discharge summaries, medical bills, etc., and ensure that you fill out all the required forms.

3. Claim Filing

File your claim online or offline according to the insurer's eligibility. Ensure the claim follow-up is being processed.

4. Settlement of Claim

The employee will then settle the claim via cashless hospitalization or reimburse the expenditure, if already incurred, and note the claim status for transparency.

Conclusion

It’s essential to consider purchasing Health Insurance as a safety net to secure yourself from unexpected medical expenses.”Secure your future with Star Health Insurance, visit www.starhealth.in today!”