Since finding health insurance is an individual responsibility, freelancers and self-employed professionals in India are really bothered by health insurance matters. They have to take care of their health coverage independently because they have no company-provided health coverage. This, more importantly, makes them entirely dependent on their decisions regarding all the health insurance policies and increases the burden when medical expenses touch the roof.
This blog centers on the health insurance options available for self-employed individuals or freelancers in India. It includes specific policies catering to different needs.
Why Does Health Insurance for Freelancers and Self-Employed Matter?
Irregular sources of income for freelancers and entrepreneurs make it a critical time to plan for health-related costs. Health insurance is essential to avoid a massive loss in case of a medical emergency. That is why health insurance is crucial:
- Protection against High Medical Bills: Due to rising medical inflation, even normal procedures can become expensive affairs.
- Tax Benefits: The good about health insurance schemes is that the premiums can be claimed as a tax deduction under the Income Tax Act falling under Section 80D.
- Access to Good Health Care Facilities: Insurers provide cashless treatment networks that allow men to access better hospitals.
- Maintenance of Health and Wellness: This promotes better health management through regular checkups and insurance-covered preventive care.
Top Health Insurance Plans for Freelance and Self-Employed Individuals
1. Individual Health Insurance Plan
This type of health insurance for an individual is rendered wherein each expenditure, pre-hospitalization, diagnosis, and treatment provided inside the hospital, and post-hospitalization charges pertaining to surgery are all well addressed inside a hospital.
Features
- Cashless treatments in networked hospitals
- Pre-and post-hospitalization charges
- Optional add-ons, including maternity cover and critical illness cover.
Best Served For: Independent professionals and freelancers or solopreneurs seeking affordable health insurance coverage.
Examples
- HDFC Ergo Optima Restore
- Star Health Comprehensive Insurance
2. Family Floater Health Insurance Plans
A family floater plan is a good option if you want to cover your family along with yourself. Here, the total sum insured is shared between all family members. This option provides more flexibility, as the entire coverage amount can be available for any family member in need.
Features:
- It is cheaper compared to buying separate plans for every family member.
- Covers spouse, children, and dependent parents.
- Cashless hospitalization and daycare treatment.
- Applicable for freelancers who have family, spouse, or children.
Examples:
- ICICI Lombard Family Health Insurance
- New India Assurance Floater Mediclaim
3. Health insurance plans with Maternity Coverage.
Maternity health cover for freelancer women will enable them to conceive without worrying about additional finances and costs that will later arrive on them. It can prove instrumental in providing coverage against both a standard and Caesarian delivery. Other covers on newborn care.
They have 2-4 years before the benefits start. Best suited for female freelancers and business owners who want to conceive shortly.
Examples:
- Star Health Comprehensive Plan with the maternity add-on
- Religare Joy Maternity Insurance
4. Critical Illness Insurance Plans
Critical illness plans are designed to safeguard freelancers against critical illnesses like cancer, heart attack, or kidney failure. Under such plans, the plan pays the sum upon diagnosis of one specified critical disease, which is put toward treatment, lifestyle change, or income loss.
Features:
- Payment when the specified covered illnesses are diagnosed
- No requirement of hospitalization for claims
- It allows a person to lose earnings due to lengthy treatment
Most Suitable For :
Several professionals who have a genetic disorder or have been otherwise diagnosed as afflicted with serious illnesses fear the gravest threats for it
Examples
- HDFC Ergo Critical Illness Cover
- ICICI Prudential Critical Care Plan
5. Top-up and Super Top-up Plans
Top-up plans are supplementary coverage that automatically activates when the sum insured of the base policy is consumed fully. Super top-up plans work best for freelancers who may already have base health insurance but want an extra layer of coverage in emergencies.
Features:
- They are cheaper than increasing the sum insured by a base policy.
- Super top-up plans would pay for as many claims in a year.
- They are great for handling costly hospitalization.
Best Served For :
Freelancers with a basic cover are looking for a low-cost way of topping up their covers.
Examples:
- SBI Arogya Top-Up Policy
- United India Super Top-Up Plan
6. Health Insurance through Professional Associations and Groups
Most professional bodies offer group health coverage for their members, and they often get the coverage cheaper. Freelancers or even self-employed professionals can take advantage of this through industry contacts.
Examples:
- Health cover by association of freelancers.
- Professional association Group policies of the Film and TV Industry Welfare Fund.
Best suited for
- Freelancers engaged in creative or industry-specific work and are professional members.
- Things to Ponder Over While Selecting Medical Insurance
Factors to Consider When Choosing Health Insurance
- Sum Insured: Take an estimate of the sum you are going to require as compared with your health needs, to buy the right sum. Remember your family size and inflation rates due to the increasing cost of medical care in your local town.
- Premium: Compare the premium rates of various insurers so that you get a plan which is within your budget yet provides adequate coverage.
- Waiting Periods: Maternity cover and pre-existing conditions generally come with waiting periods. If either of these is your main concern, then select policies that offer reasonable waiting periods.
- Cashless Hospital Network: Ensure that the insurer has a good hospital network offering cashless treatment.
- Claim Settlement Ratio: Find companies that claim a high claim settlement ratio, which basically means you can rely on them when you actually need it.
Tax Benefits of Health Insurance for Freelancers
Moreover, freelancers or consultants can claim the allowance for the same under Section 80D of the Income Tax Act. So, here’s how one can save:
- If you pay the premium for yourself, your spouse, and your children, you can save upto ₹ 25,000.
- If you pay the premium of senior citizen parents, you will get an extra deduction of ₹ 50,000.
- The cost of preventive health check-ups up to ₹ 5,000 is allowed as a deduction as well.
- All these tax benefits reduce your overall taxable income, and health insurance is a smart financial decision.
What was once a safety net has now evolved into one of the core ingredients in financial planning for India’s freelancers and all self-employed Indians. From individual and family floater plans to critical illness cover and top-up plans, something hits all the right notes between needs and budget.
Other regulatory bodies for health insurance in India include IRDAI. This provides further openness and security to consumers. Freelancers can also opt for professional group health policies that provide extra coverage at a competitive rate.
Get started today, compare policies, check options, and invest in the proper healthcare coverage at the perfect affordable price.
