Important Characteristics of Individual Health Insurance

A health insurance policy protects you from hefty medical expenditures and rising healthcare costs. Buying a health insurance plan allows you to leverage the benefits of taking the best medical care when required. Different kinds of health insurance policies in the market serve different needs of different persons. For example, one kind of health insurance policy is individual health insurance.

This article will explore Individual Health Insurance, its important characteristics, types, and benefits.

What Is an Individual Health Insurance Plan?

Individual health insurance plans are the type of insurance policies that individuals purchase for themselves. It is also known as personal medical insurance, which offers coverage to individuals based on the amount insured in their chosen plan. It means that each person has to acquire medical insurance, which can be customised according to individual health needs and wants.

It typically covers medical expenses, pre- and post-hospitalization expenses, doctor consultations, ambulance charges, medication costs, and more, according to your medical policy and the coverage you choose.

It is suitable for the person for the following persons as

    • a person who is not covered under any other health insurance plan by their government or employer.
    • Self-employed individuals who required health insurance for themselves
    • A person who has some critical illness and needs a customised health insurance plan
    • A person who wants more control over their health care choices, doctor, or hospital prefers individual health insurance.

Characteristics of Individual Health Insurance

  • Solo coverage

As the name suggests, an individual health insurance plan covers a single person, providing coverage against all the medical expenses of the person who purchased it.

  • Suitable for older people

Individual health insurance is more suitable and flexible for older people. However, as with age, the health risk increases, and one needs extra coverage for some of the illnesses or specific diseases they have.

  • Cost

When you buy individual health insurance, its cost is generally higher than that of group health insurance plans as the risk in a group is segregated, which leads to a lower cost per person. However, the cost of the premium also depends on the level of coverage you opt for and any add-on benefits you choose with your policy. In addition, the insurer’s age, gender, health, location, and more also influence the premium rate.

  • Higher Coverage

Coverage is yet another crucial aspect of personal health insurance. Individual health insurance plans can differ in the extent of their benefits, as some only pay for preventive treatment, and others pay for a variety of medical costs, such as hospital stays, surgeries, and prescription medications. Thus, review it before purchasing to ensure the insurance plan meets their healthcare needs.

  • Network

Networks refer to the group of healthcare providers, such as doctors, hospitals, and clinics, contracted with the insurance company to provide services to plan members. And in individual health insurance plans, you can choose between provider networks and out-of-network providers. But one can have to pay a lower cost for a plan of provider networks. So you can look for their provider network to ensure that you have your chosen healthcare providers in the plan.

What Are The Types Of Individual Health Insurance Plans In India?

Individual health insurance plans in India can be broadly classified into the following types:

  1. Hospitalisation Plans include hospitalisation expenses such as room charges, surgeon fees, doctor fees, etc.
  2. Critical Illness Plans for life-threatening illnesses like cancer, heart attack, and kidney failure
  3. Personal Accident Plans cover accidental injuries, disability, or death from an accident.
  4. Senior Citizen Health Plans to provide coverage for specific age-related health issues.
  5. Disease-Specific Plans, which give coverage for specific illnesses such as diabetes, hypertension, and asthma
  6. Family   Floater Plans cover the entire family under a single policy.

What Are The Benefits Of An Individual Health Insurance Policy?

  1. It gives financial protection against medical emergencies by managing high healthcare costs.
  2. It provides comprehensive coverage to ensure you are completely protected in any medical emergency.
  3. The policyholder is also entitled to leverage the tax benefits under Section 80D of the Income Tax Act.
  4. Some plans might provide extra benefits not usually provided by conventional health insurance plans, like dental or vision coverage.
  5. Many insurers also provide cashless treatment facilities at their network hospitals.
  6. It also gives the policyholder peace of mind, knowing they are financially protected from unseen medical issues.


So one should invest in individual health insurance plans by considering their needs appropriately. If you find this plan suitable, you should start researching different plans. And then, with the help of a calculator, you can compare health insurance plans and find the best one for yourself. But remember, always buy health insurance plans from reliable companies like Tata AIG for smooth functioning and transparency throughout the period.