Government-funded health insurance programs are covering most people. Only about four crore people have individual health insurance policies. Millions of people, in the opinion of experts, can afford health insurance, but no one takes it seriously. The conventional branch-led distribution system contributes to the low insurance penetration. There are few insurance company offices in smaller towns. Because there is so little reliance on physical distribution, insurance companies have been unable to reach residents of tier 2, 3, or 4 cities.
What Is Personalization?
The majority of insurance policies provide coverage for both in and out-patient care. Let’s say that Person A (a man in his 40s), who lives in a small city and has a limited budget, has a condition that necessitates regular OPD visits and medication but does not necessitate hospitalisation. Regular doctor visits, lab fees, and medication costs can severely reduce one’s savings in such a situation. Health insurance customisation has been an option for the past few years but took off after the COVID-19 pandemic.
How It Will Benefit
The existing health insurance programs could cover 70% of the population, but those without coverage need help to obtain need-based health insurance plans. Unlike general health insurance policies, this segment needs straightforward, simple, affordable insurance.
In these times of high inflation, the demand for customisation is essential. Customers will be free to select the coverage they want, the amount of insurance they want, the deductibles, co-payments, sub-limits, benefits, and room type, as well as the waiting periods and various optional covers. *
The Insurance Regulatory and Development Authority of India (IRDAI)’s (‘Use and File’) policy has made it easier for insurers to launch new products without first requesting regulatory approval. Regarding customisation, the IRDAI’s initiatives will enable customers to alter their health insurance coverage according to their needs and incentivise insurers to consider those needs. #
The Advantages Of Customization
A customised plan enables people to create their policies according to their needs. In addition to the amount assured, a customer can select the number of family members to be covered, the location of the medical facility, the number of critical illnesses covered, a higher cumulative bonus, and additional benefits like maternity coverage and a daily network hospital allowance.
- When you are young, purchase health insurance; the earlier, the better.
- Recognise your needs and demands.
- Considering income and medical history in the family
- Do your homework and select the ideal plan.
- Carry out a proper assessment of your health.
- Get familiar with what is and needs to be covered.
The Benefits Of Health Insurance
- Financial Support: It is a reliable funding source in need.
- More Expensive Treatment: Health insurance covers various expenses without taking a financial toll on you as medical care costs continue to rise.
- Tax Exemption: Section 80D of the Income Tax Act of 1961 provides a premium payment rebate of up to Rs 25,000. **
*Standard T&C Apply
** Tax benefits are subject to change in prevalent tax laws.
# Visit the official website of IRDAI for further details.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.