An individual health insurance plan is intended for those persons who are not covered under a group healthcare policy. Unemployed or self-employed people usually opt for a personal health insurance policy. People covered under the public healthcare policy can also choose to buy an individual medical insurance plan for extended cover. A short-term individual health insurance plan is ideal for those who have just ended a group insurance policy due to termination of employment.
Personal medical health insurance cover is expensive and lacks the benefits of a group health insurance plan. On the other hand, the lack of insurance cover can mean the financial burden of paying huge medical bills in the event of an illness or accident.
What does an Individual Health Insurance Plan Cover?
Unlike group healthcare plan, a personal health insurance policy offers greater choices for the individual. This gives the policyholder the flexibility to opt for extended medical cover in proportion to his or her medical budget.
The first step to getting individual medical insurance cover is to prepare a list of existing and possible medical threats. Remember to mention all major diseases common to the family when preparing the list. The next step is to look for an individual health insurance plan that covers basic healthcare facilities plus all the listed diseases. A personal health insurance policy can also be tailored to cover specific needs, such as cosmetic surgery or cancer insurance.
Essential Tips for Buying Individual Health Insurance Policies:
The following tips might come in handy while making up one’s mind about an individual health insurance policy:
Look for deductibles: A deductible is the amount that a policyholder has to pay for medical services before he or she can benefit from the health insurance policy. Check that the deductibles are only a small proportion of the annual medical budget.
Ensure a co-insurance policy: It is preferable to get an individual health insurance policy with a co-insurance payment option. This requires the policyholder to pay a proportion of the total expenses. For instance, the policyholder pays 15 percent of the medical bill and the remaining is paid by the medical policy.
Understand the cover: The policyholder should clearly understand the extent of medical cover offered under the personal health insurance policy. The policy should necessarily include pre-existing conditions of the insured person.
Unlike a group plan, individual health insurance cover entails regular premium payments within the stipulated time.