Health Insurance Plans for Self-Employed

What is Health Insurance for Self-employed Individuals?

Health insurance for self-employed individuals provides comprehensive medical coverage to people who run their own company or business. It offers financial protection to self-employed people against medical expenses arising out of an accident or sickness. It safeguards the savings of the self-employed person in case of any medical emergencies by offering financial support.

A health insurance policy for self-employed provides coverage for both hospitalization and non-hospitalization expenses. The coverage under such plans can also be extended to cover the entire family of the self-employed individuals, which may include the spouse, children, parents and parents-in-law.

Key Benefits of Buying Health Insurance for Self-employed Individuals

Take a look at some of the key benefits of buying a health insurance policy for self-employed individuals:

• Medical Coverage – It ensures that the insured has access to quality medical treatment whenever a health emergency arrives as their medical expenses, including hospitalization costs, are taken care of by the insurance company.
• Affordable Premiums – Health insurance for self-employed individuals are usually available for a lower premium as they come with several highly attractive discounts.
• Coverage for the Entire Family – Such plans not only provide coverage to self-employed individuals but also their entire family.
• Financial Stability – It allows the insured to maintain financial stability as they do not have to worry about unforeseen medical expenses eating from their limited earnings or profits, especially in the case of small-scale businesses.
• Cashless Hospitalization Benefit – It enables the insured to avail cashless hospitalization benefit if he/she gets admitted to a network hospital of the insurance provider.
• Income Tax Benefits – It can help the policyholder to save on income tax by availing tax deductions on premiums under Section 80D, Income Tax Act 1961.

Types of Health Insurance Plans for Self-employed Individuals

Self-employed individuals can buy two types of health insurance plans in India. Take a look at them below:

1. Individual Health Insurance for Self-employed – This type of health insurance plan provides medical coverage to only self-employed individuals. The sum insured under this type of plan is available on an individual basis. Family members can also be added under this plan but a separate sum insured amount applies to each family member. As a result, the premium for an individual health insurance plan for the self-employed is a little steep.
2. Family Floater Health Insurance for Self-employed – This type of health insurance plan provides coverage to the self-employed person as well as his/her family on a single sum insured amount. The coverage amount is available on a floater basis, which means it is shared by the entire family. As a result, the premium for a family floater health insurance plan for the self-employed is more affordable.

Inclusions of Health Insurance for Self-employed Individuals

Health insurance plans for self-employed individuals come with the following coverage:

• In-patient Hospitalization Expenses
• Day Care Procedures
• Pre-hospitalization Expenses
• Post-hospitalization Expenses
• AYUSH Treatment
• Road Ambulance Charges
• Organ Donor Expenses
• Domiciliary Hospitalization

The coverage available under health insurance for self-employed individuals varies from one plan to another.

Exclusions of Health Insurance for Self-employed Individuals

The following medical expenses are excluded under most health insurance plans for self-employed individuals:

• Treatment for intentional self-injury
• OPD treatment
• Treatment for injuries/illness resulting from intoxicants, such as alcohol and drugs
• Dental treatment
• Cosmetic or plastic surgery
• Unproven treatment
• Infertility treatment

Please note that the list of exclusions can vary from one policy to another.

Who Can Buy Health Insurance for Self-employed Individuals?

The following people can buy health insurance plans for self-employed:

• Businessmen
• Freelancers
• Farmers
• Taxi or Rickshaw Drivers
• Domestic Servants
• Labourers
• Entrepreneurs
• Small Workers
• Unorganized Workers
• Retailers
• Sole Proprietorship
• Partners
• Firms
• Blue-collared Workers

How to Choose the Good Health Insurance for Self-employed Individuals?

One of the best ways to choose a suitable health insurance plan for self-employed individuals is by comparing plans by different insurers online based on several factors. Given below are some important factors that self-employed individuals must keep in mind while choosing the good health insurance plan:

• Coverage – Check the inclusions and exclusions of various health insurance plans and choose a plan that best fulfils the applicant’s health needs. Do not compromise on the coverage to reduce the premiums.
• Sum Insured – Estimate the annual medical expenses of the applicant and pick a plan that is closest to that figure. Opting for lower coverage can increase out-of-pocket expenses while higher coverage can increase the premiums.
• Premium – Carefully compare the premium offered by various health insurance plans. Go for a plan that provides the desired coverage for a pocket-friendly premium.
• Add-on Covers – Check out the various add-on covers available under health insurance plans. Opt for add-on covers that are essential to provide comprehensive coverage to the applicant.
• Renewability – Make sure to opt for a plan that comes with a lifetime renewability feature. This will ensure that the applicant does not have to look for another health plan later in life.
• Deductibles – Find out if any health insurance plans for self-employed individuals come with a compulsory deductible. Don’t opt for a plan that comes with high deductibles, which will be difficult to afford.
• Network Hospitals – Go through the list of network hospitals affiliated with various insurance companies. Try to opt for a health insurance plan whose provider has network hospitals in the applicant’s neighbourhood.
• Co-payment and Sub-limits – Check various health insurance plans for any co-payment and sub-limit clause. Choose a plan that does not come with any co-payment or sub-limit clause.
• Claim Settlement Ratio – Make sure to check the claim settlement ratio of various insurance companies before buying a health insurance plan for self-employed individuals. Opt to buy health insurance from an insurance provider that enjoys a good claim settlement ratio.

Health Insurance for Self-employed Individuals – FAQs