Entrepreneurs often choose between individual health insurance and group health insurance plans. Each option has its pros and cons:
Individual health insurance
Suitable for solo entrepreneurs or freelancers.
Plans are customizable based on personal health needs.
Premiums can be higher without employer contributions.
Available through state or federal marketplaces.
Group health insurance
Requires multiple employees to qualify.
Generally offers better rates due to risk-sharing among employees.
Employers may receive tax benefits for providing coverage.
More comprehensive coverage options are available.
Key benefits of health insurance for entrepreneurs
Health insurance plans provide crucial benefits for self-employed individuals, from early disease detection through preventive care to tax savings and financial security during medical emergencies. Here’s how health insurance can support you as a self-employed professional:
Save on taxes
Health insurance premiums offer tax benefits under Section 80D of the Income Tax Act. You can claim deductions of up to ₹25,000 (and more, depending on your age) on premiums paid for yourself, your spouse, children, and parents, helping you reduce your overall tax burden.
Protect your savings
Medical emergencies can drain your savings quickly. Health insurance covers expenses like hospitalisation, ambulance services, and day-care treatments, allowing you to access quality healthcare without dipping into your savings.
Shield against rising medical costs
With healthcare costs rising steadily due to advanced medical technology, setting aside money for future treatments might not be enough. A health insurance plan provides financial support to cover critical illness treatment and other medical expenses, ensuring you can get timely care without worrying about expenses.
Choose the right plan
As a self-employed individual, explore options such as individual plans, family floater plans, critical illness cover, and maternity insurance. Select a plan based on factors like age, health history, pre-existing conditions, and required coverage to ensure it meets your specific needs.
Comprehensive coverage
Look for plans that offer extensive benefits, including domiciliary hospitalisation, organ donor expenses, alternative therapies, day-care procedures, and pre- and post-hospitalisation costs. Avoid choosing plans based solely on low premiums, as they might lack essential features.
Additional features
Some plans offer value-added benefits such as wellness programs, telemedicine, mental health support, and customizable coverage options. These features help manage your health holistically and make your insurance more beneficial.
Consider the premium
Premiums vary depending on your age, health condition, coverage amount, and location. While premiums might seem high initially, they protect you from potentially huge medical bills during emergencies.
Stay insured for peace of mind
Having health insurance helps you stay financially stable and focus on growing your business without worrying about healthcare costs. Being insured ensures long-term health security and peace of mind.
Tips to save money on health insurance as an entrepreneur
While health insurance can be costly, there are several ways entrepreneurs can reduce expenses without compromising on quality coverage:
- Compare multiple plans: Research different providers and policies to find the most affordable and comprehensive option.
- Opt for high-deductible plans: If in good health, choosing a plan with a higher excess can lower monthly premiums.
- Utilise tax deductions: Many self-employed individuals can deduct health insurance premiums from taxable income.
- Explore telemedicine services: Virtual healthcare consultations can be more affordable and convenient compared to in-person visits.
- Look for industry-specific policies: Some trade associations offer discounted group health insurance schemes to their members.
- Negotiate with providers: Some healthcare professionals offer lower rates for self-paying patients or instalment payment plans.
Conclusion
Health insurance is an essential investment for entrepreneurs and self-employed individuals, offering crucial financial protection and peace of mind. Without the safety net of employer-sponsored plans, it is vital to explore the suitable available options and make informed choices. By evaluating different policies, comparing costs, and implementing money-saving strategies, entrepreneurs can find a suitable health insurance plan without excessive financial burden. Securing adequate healthcare coverage ensures long-term personal well-being and business sustainability, enabling entrepreneurs to focus on growth and success without worrying about unforeseen medical expenses.
For those seeking a convenient and reliable way to explore health insurance plans, consider Bajaj Finance Insurance Mall. We partner with numerous insurers, providing a diverse selection of health plans to cater to varying needs and budgets. Our online platform allows you to effortlessly compare policies, and select the ideal plan to safeguard your health and finances. With Bajaj Finserv, securing the right health insurance coverage is a hassle-free and informed decision.
