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Individual Health Insurance: Importance and Benefits

Published On Mar 27, 2023 10:00 AM By InsuranceDekho

A medical emergency can knock on your door at any point in time and may burn a deep hole in your pocket. Thus, to cope with the rising medical expenses, it is very important to be prepared and the best way for this is to buy health insurance plans. The importance of health insurance has become such that people irrespective of their age group are now investing in health insurance plans to get much-needed protection against health emergencies. Owing to the popularity of health insurance plans, there are different types available such as family floater health insurance plans, individual health insurance plans, and more. Read on to learn all about individual health insurance plans.

Individual Health Insurance: Importance and Benefits

What are Individual Health Insurance Plans?

Individual health insurance is a type of health insurance plan that provides health insurance coverage on an individual basis. This type of health insurance plan is purchased separately for the different members of the family. From hospitalisation costs to treatment costs, individual health insurance plans provide coverage for almost all. However, it is important to note that, unlike family or group health insurance plans, the premium of an individual health insurance plan is lower as the number of members covered under this is only one. 

Benefits of Buying Individual Health Insurance Plans

There are umpteen benefits of buying individuals health insurance plans such as the following:

  • You can add a number of add-ons to individual health insurance plans like critical illness riders, maternity riders, and others to enhance the benefits of the plan.
  • There are tax benefits available on individual health insurance plans as specified under section 80D of the Income Tax Act of 1961. The tax benefits are offered on the premium that is paid for keeping the health insurance plan active. 
  • The premium for individual health insurance plans is comparatively lower as compared to other types of health insurance plans. This is because only one member is covered in an individual health insurance plan as compared to family floater health insurance plans that cover all the family members. 
  • The coverage offered under individual health insurance plans is solely meant for the policyholder. For instance, the sum insured is not divided amongst the different family members.
  • Unlike group plans where there is a specific waiting period in case other family members use the coverage offered under health insurance plans, there is no such waiting period in individual health insurance plans. 
  • You can also get a cashless treatment facility by availing medical treatment at a network hospital as specified under your individual health insurance plan.

Group Health Insurance Plans Vs Individual Health Insurance Plan

Wondering whether you should buy a group health insurance plan or an individual health insurance plan? If so, then you need to understand your family size and health coverage requirements and accordingly invest in health insurance plans. For example, if you have a senior citizen and you are unmarried, then it makes sense to buy individual health insurance for yourself and a senior citizen health insurance plan for your parents. On the other hand, if you have a spouse and children, then it is better to buy a group health insurance plan rather than an individual health insurance plan. 

Things To Keep in Mind While Buying Individual Health Insurance Plan

There are certain things that you must keep in mind while buying an individual health insurance plan such as the following:

  • You need to check your affordability and accordingly buy a desired individual health insurance plan.
  • You should also check the number of network hospitals available with your plan as the greater the number of network hospitals, the more beneficial it will be for you.
  • Sometimes individual health insurance plans come with sub-limits, so it is better to check about the same before buying an individual health insurance plan.
  • Also, check the claim settlement ratio of the health insurance company before investing in an individual health insurance plan.

Take Away

Thus, individual health insurance is best suited to meet individual health requirements. You can check a number of individual health insurance plans on the website of InsuranceDekho.

Also read: How to Choose the Best Health Insurance for Parents


This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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