How to Choose a Personal Health Insurance Plan


Aug 19 2022


Before shopping for a personal health insurance plan, you must first understand what type of coverage you need and how much risk you’re willing to take. Health insurance can help cover the cost of medical care, including out-of-pocket expenses, in the case of a covered health issue. It can also be a financial lifesaver in the event of an accident or other unforeseen circumstance. The two main types of personal health insurance are plans that pay for general health care expenses and plans that pay a set amount per day for hospital stays.


Even if you don’t have specific health care needs, it can be worth getting health insurance as a financial safeguard. The majority of Indians are now considered under-insured, meaning they are not covered by health insurance and are therefore exposed to financial risk in case of illness or injury. Moreover, the costs for medical care can be astronomical, making it all the more important to be covered.


The Importance of Personal Health Insurance?

Health insurance is critical for every family. It can help protect you, your family, and your finances in case of an illness or injury that causes you to need medical care. With illness or injury, health insurance can help pay for a doctor’s visit, a hospital stay, prescription drugs, or a surgery, among other things.


If you don’t have health insurance, you can still receive medical care but on actuals which might blow up the budget and dip into your savings. It is not the same as receiving proper medical care. In some cases, you may be subject to medical tourism fraud, in which your condition is misdiagnosed, or you are given sub-par medical care. You get proper medical care in a reputable hospital overseen by trained medical professionals when you have health insurance.


How does personal health insurance work?

If you are under 18, your parents are legally responsible for you until 26 years old. The same is true for people with kids under 18 in their care. This is sometimes called “lapse” or “Extend” of coverage. If you have health problems but don’t have insurance or can’t afford it, you can still be treated. But if you get sicker and need more time in the hospital, you must be able to pay for it out of your pocket. If you don’t have insurance, a hospital may let you stay the entire time, but they won’t give you any discounts on your bill. If you have health insurance, the hospital will calculate a price for your stay based on how much it would cost to treat someone else with your health condition. The hospital then subtracts the amount they would have changed if you didn’t have insurance (this is called a “deductible”).


What’s covered by personal health insurance?


Personal health insurance policies cover a wide range of medical expenses, including doctor visits, hospital stays, medical equipment, medications, and many other medical costs depending on the plans and policies you opt for. Policies come with rules and limitations, including what types of expenses are covered and for how long. Some policies may cover maternity visits but not other types of care. Other policies may have a lifetime limit on covered expenses or provide bare-bones coverage for a set amount per occurrence. Make sure you understand the terms and limitations of the policy you choose.


What’s not covered by personal health insurance?

Health insurance does not typically cover preventive care, such as a yearly checkups or vaccinations. Preventive maintenance is important for your health and wellness, and you should not be shy about getting it. However, since your insurance may not cover these visits, you should budget for them yourself


Your policy may not cover needed medications if you have a chronic condition, such as asthma or high blood pressure. Make sure you know what drugs are covered and which ones are not.


Types of Personal Health Insurance

In India, there are two main types of personal health insurance: individual plans and family floater plans. Also, it is important to choose a health insurance plan which is comprehensive by nature. Health insurance plans don’t come in a one-size-fits-all format. There are health insurance plans that pay for general health care expenses and some plans that pay a set amount per day for hospital stays. These are the main differences between the two types of coverage:


  1. Coverage limit: A plan that pays out on a per-day basis may have a lower annual limit on covered benefits, meaning you could be responsible for paying the difference out of pocket if something goes wrong. (Some health insurance policies have an annual or lifetime coverage limit.)
  2. Out-of-pocket expense limit: An out-of-pocket expense limit is the maximum amount you have to pay for covered medical expenses out of pocket, even if that amount is higher than the medical insurance coverage limit. For example, a $5,000 out-of-pocket expense limit may mean that you still owe the doctor or hospital if your health insurance doesn’t cover the entire cost of a medical bill.


How and where to buy health insurance

You can shop for health insurance on various websites and in person at the designated offices of the insurance provider. Most large cities have at least one health insurance office that you can visit to compare and purchase personal health insurance policies. With the evolution of technology and insurance best practices under the aegis of the IRDAI, it is now possible for people to buy insurance online. Still, most people choose to purchase coverage in person to avoid any potential issues arising from having no medical records.



Personal health insurance is a valuable safeguard to have in an illness or injury. Make sure you fully understand what type of coverage you have and how it works before you need it. Get insurance from a reputable health insurance company and keep your coverage up to date. These steps will help ensure that you have the coverage you need when you need it.



Answer - There are different kinds of personal health insurance. However, the two main kinds of personal health insurance are individual health insurance and family floater health insurance.


Answer - The thumb rule to choosing a personal health insurance plan is to check one’s health needs and requirements and find out how much coverage one needs. The next step is to compare and check plans and policies from different providers on what’s the best permutation and combination for you or your loved ones.


Answer - After due diligence and research, one can buy the desired health insurance plan at the website of the insurance provider or walk into any of their designated offices and get in touch with the official concerned and buy the plan after due paperwork.

  1. How many kinds of personal health insurance are there?
  2. How to choose a personal health insurance plan?
  3. Where can we buy personal health insurance?