Running a business on your own is a challenging task. It takes tenacity, grit, and business acumen. Because you have no one else to rely on, the risks are multiplied, and there are no safety nets to fall back on. Your income suffers if you get sick and miss work for a few days. Considering all this, taking health insurance for self-employed individuals seriously is critical.
If you’re self-employed, you should get a comprehensive health insurance plan for yourself as well as your family. It will safeguard your hard-earned income and savings in a medical emergency necessitating hospitalisation. Plus, there are plenty of other benefits of health insurance, and we will discuss them in this article.
Do Self-Employed Individuals Require Health Insurance?
Experts believe that healthcare for self-employed individuals should be considered. They must obtain comprehensive medical insurance, as paying out of their purse may lead to medical debt. Thus, self-employed individuals must get health insurance to cover them financially in times of medical emergency.
Benefits of Medical Health Insurance for Self-Employed Individuals
The following are the primary benefits of health insurance if you are self-employed:
- The 1961 Income Tax Act (Section 80D) allows a tax deduction for premiums paid towards a health insurance policy.
- Complete protection for yourself. You may also buy a family floater policy covering your full family.
- Excellent health coverage at a reasonable premium.
- Your life will become less stressful, and financial planning will be advantageous in the long run, knowing you’re covered with a robust health insurance policy.
- You may visit the best cashless network hospitals in India.
- You may also use the reimbursement feature.
- Pre- and post-hospitalisation and in-patient hospitalisation expenses are covered.
- A large sum insured covers expensive hospital bills and compensates for medical inflation.
- It includes the AYUSH benefit.
Types of Health Insurance for Self-Employed People
In India, self-employed people can choose between two types of health insurance plans. Take a look at these:
- Individual Health Insurance for Self-Employed Individuals: Only self-employed people are covered under this medical insurance policy. Individually, the amount insured under this type of policy is available. Family members may also be included in this policy, but each family member is insured separately. Consequently, the premium for an online health insurance plan for self-employed individuals is high.
- Family Floater Health Insurance for Self-Employed Individuals: This health insurance policy covers the self-employed individual and their family for a single amount insured. The amount is available on a floater basis, meaning the entire family shares it. Consequently, the premium amount for a self-employed family floater medical plan is less expensive.
Health Insurance Policy for Self-Employed Individuals: Inclusions and Exclusions
You must know the things covered as well as not covered in a health insurance policy for self-employed people:
- Day Care Procedure
- In-patient Hospitalisation Expenses
- Pre- and Post-Hospitalisation Expenses
- Road Ambulance Charges
- AYUSH Treatment
- Domiciliary Hospitalisation
- Organ Donor Expenses
- OPD Treatment
- Treatment for self-injury
- Infertility treatment
- Plastic or cosmetic surgery
- Dental treatment
- Treatment from illness/injuries caused due to intoxicants, like drugs and alcohol
- Unproven treatment
How to Purchase the Best Health Insurance Plan for Self-Employed Individuals?
Numerous health insurance companies in India, like Tata AIG, provide medical insurance plans for self-employed people. Nonetheless, picking the best plan for your needs can be a difficult task. As a result, we present you the following list of parameters to consider when purchasing a medical insurance policy:
- Plan Type: Select between a family floater plan or an individual health insurance plan based on the number of members you like to include.
- Coverage: Check the health insurance plan’s sum insured options as well as the types of coverages mentioned.
- Availability of Add-ons: You can extend the coverage of your standard health insurance plans by adding additional coverage. As a result, confirming that the insurance carrier provides all health add-on coverage with the plan is critical.
- Renewal Requirement: Some health insurance policies impose an age restriction on the policyholder at the time of health insurance policy renewal, while others do not. As a result, checking for this is critical.
- Claim Settlement Ratio: It is the total number of insurance claims resolved by an insurer divided by the number of insurance claims received during the fiscal year. So, before purchasing a health insurance plan for self-employed individuals, compare the claim settlement ratios of various insurance companies. Purchase health insurance from a company that has a high claim settlement ratio.
- Premium Amount: Compare the premiums offered by various medical insurance plans carefully. Choose a plan that offers the desired coverage at a reasonable cost.
- Network Hospitals: Examine the network hospitals affiliated with numerous insurance companies in India. Choose a medical insurance policy whose insurance carrier has network hospitals in your neighbourhood.
- Deductibles: Determine whether any medical insurance policies for self-employed individuals require a deductible. Don’t choose a health insurance plan with high deductibles that will be challenging to afford.
Medical insurance is required for every working individual, whether for someone else or their own company. You will receive group medical insurance benefits if you work for a private or public company. However, this is different for self-employed people. As a result, self-employed people who own their businesses in unorganised sectors must purchase medical insurance.