Health Insurance for Self-Employed Individuals

Health insurance is a necessary financial instrument that safeguards your savings and secures your future. Most salaried people who work in organized sectors will usually be covered under group health insurance, otherwise known as corporate health insurance or employer health insurance. But people who are self-employed such as freelancers, entrepreneurs, etc., will not get such default coverage. However, without health insurance they will be living in the vulnerability of heavy out-of-pocket medical expenses should a medical emergency arise. If you are a self-employed professional, there is no better time than now to invest in a suitable health insurance plan that caters to your and your family’s needs.

Being a self-employed individual comes with a lot of responsibilities. For starters, you will not get default health insurance coverage as many salaried professionals do. You will be responsible for securing your and your family’s health. This also gives you a sense of flexibility in choosing the cover that you think is suitable.

There are various types of health insurance coverage available. Due to ever- growing healthcare demand and ever-increasing medical inflation, health insurance coverage has been constantly evolving to keep up with the changing needs.

If you are a self-employed professional who has just started your endeavour, individual health insurance can be the best option for you. These health plans are designed to meet the healthcare needs of an individual.

Individual health insurance provides them with customizable coverage tailored to their unique needs, ensuring access to medical services without relying on employer-sponsored plans. This flexibility empowers self-employed individuals to choose plans that align with their budget and health requirements, while potential tax deductions further ease financial burdens. Moreover, individual health insurance safeguards against unexpected medical expenses, enabling entrepreneurs to focus on their businesses with peace of mind, knowing that their health and well-being are protected by comprehensive and personalized coverage.

Family floater health insurance presents self-employed individuals with invaluable advantages. This comprehensive coverage extends to their entire family, including spouse, children and sometimes parents and parents-in-law, thus securing them from adverse medical bills.

It offers potential cost savings compared to individual policies for each family member. This option ensures holistic healthcare protection, covering medical expenses for various family members under a single plan. For self-employed individuals, family floater health insurance provides peace of mind, knowing that their loved ones' well-being is safeguarded, and medical expenses are managed efficiently, allowing them to concentrate on their profession with confidence.

Based on your requirements, you can opt for a policy that best suits your needs. While navigating medical insurance plans, keep in mind the below things:

Affordability

Choose a policy that is cost-effective. This does not mean that you should go for cheaper plans. Check the coverage the plan offers and compare it with other insurers to pick the one which is cost-effective without compromising on the coverage.

Network Hospitals

Choosing an insurer with a wide network of hospitals is crucial. You can avail seamless cashless treatments at network hospitals without worrying about out-of-pocket medical expenses. Hence, choosing an insurer with a large network gives you access to quality healthcare without stressing out about medical bills.

Waiting Period

Most health insurance policies have different waiting periods such as for pre-existing diseases, specific diseases, etc. Look for policies that have low waiting periods. Some plans even have an option to reduce waiting periods for an additional premium.

Co-pay and Deductibles

While shortlisting the best health insurance plan, check the co-pay and deductible clauses carefully. Co-payment and deductibles are cost-sharing agreements between the insurer and the insured. Policies having higher co-pay and deductibles may result in you paying high out-of-pocket expenses. However, it reduces the premium.

Health insurance has become necessary for all irrespective of their professions. Having health insurance of your own is even more essential if you are a self-employed individual. Based on your needs, pick the right insurance coverage you need. Moreover, you can avail income tax deductions on health insurance premiums under Section 80D of the Income Tax Act, 1961. Thus, health insurance acts as an efficient investment that gives you financial stability.