How Much Does Individual Health Insurance Cost?
Health Insurance

How Much Does Individual Health Insurance Cost?

Finding the right health insurance policy for yourself is not a hard task. But you need to keep many factors in mind while buying the medical cover. Coverage, exclusions, and cost of insurance are three important factors. Unlike in group health insurance plans, wherein your employer pays the insurance premium, you pay the premium amount from your own pocket in individual health insurance plans.

How much does it cost for individual health insurance? That’s the key question you ask yourself while planning to buy a health insurance plan. Answering this query can help you make the right choice. Note that insurance options are galore. Thankfully, health insurance policies available in the market suit all types of budgets. With intelligent financial planning, you can get the maximum value for your money.

The monthly premium of the most vanilla individual health insurance plans will cost you less than what lavish dinner costs in Mumbai. Read on to know more about how much does an individual health insurance cost.

Finding out the cost of individual health insurance plans in India

Is there a formula that can be applied to find out how much an individual health insurance policy will cost on an average? Unfortunately, there is no single formula that you can apply because insurance policies are not one–size–fits–all products. The kind of policy you choose and the coverage you need depends on a host of variables. This includes your age, where you live, medical history and lifestyle

Here are some tips to help you understand how the premium varies for individual plans

For instance, if you want to purchase a health insurance plan that gives you INR 20 lakh coverage and you are a 30–year–old non–smoking female, your monthly premium may be as low as INR 3,000. However, if you are a smoker, the premium may shoot up to INR 5,000. Bear in mind that premium always increases with age. The earlier you purchase an individual health insurance plan, the better are the chances of getting it cheap

Is an individual health insurance policy enough to take care of all medical needs?

You must remember that as you progress through different stages of life, your medical needs change. If you have a stressful lifestyle, you are more prone to life–threatening diseases such as cardiovascular issues or kidney failure. Treatment of such illnesses can almost cost you a fortune.Investing in individual health insurance plans is helpful during the early years of your life. Buying a critical illness cover, along with an individual health insurance plan, when you are in your mid–30s is a good idea

Is family health insurance cheaper than individual health insurance plan?

If you are newly married, then opting for a family health insurance plan is an attractive option. Same is the case if you are living with your parents. So, let’s see how much does family health insurance cost.

The biggest attraction of a family health insurance plan is the single premium that you need to pay and enjoy extensive coverage for all family members. For instance, if you and your spouse are below 30 years, you can pay INR 10,000 as your annual premium and enjoy INR 5 lakh coverage under a family floater plan. If you have kids above five years and your spouse and you are above 30 years, an annual premium of INR 20,000 can get you an insured amount of INR 10 lakh under a family floater plan. But here’s a catch – the premium for family floater plans is linked to the age of the oldest member of your family. If you have your parents living with you and are above the age of 60, it makes more sense to purchase individual health insurance plans to provide separate coverage

In contrast, if you are opting for individual health insurance plans for each member of your family, you need to pay the premium individually. This can make individual insurance plans more expensive. Moreover, the premium will also increase with age and health conditions

How much does a family health insurance plan cost? This question definitely stands out as a crucial factor when you are given a choice between getting an individual plan and a family floater plan. If you are a young family, family floater plans will work out cheaper compared to getting individual health insurance plans

However, if any of the family members are within the 50–60–year age bracket, getting individual health plans makes more sense from a financial planning standpoint.

If you are already covered by the company's group health insurance, should you still get an individual health insurance plan?

Relying too much on the company health insurance policy is one of the common mistakes that many commit

Remember that group covers have more exclusions than in individual health insurance plans and the coverage is decided by the employer. Some group plans also have limits on the per-day room rent at a hospital which may be slightly restrictive when you undergo a critical surgery and may need better facilities for quick recovery. Moreover, you may also need to pay a part of the expenses if the policy includes a co-pay or cost-sharing clause. In other words, group health insurance plans may make it difficult to claim the entire medical expenses incurred.

On the other hand, individual health insurance plans give you more freedom to make a solid plan in case you face an unforeseen medical emergency. You can browse through various options available, receive quotations from different insurance companies, compare the coverage, exclusion, premium, etc. and then decide which one works for you. You can also check out insurance premium calculators available on the insurance companies’ websites to determine the exact amount of premium you will need to pay. This will help you find out the cost of add-on or optional benefits before purchasing the policy. You can also vary the data and check out the premium you will need to pay as you age.

Having a steady source of income is also a key factor when choosing an individual health insurance plan. After all, failure to pay the premium will result in the policy lapsing. However, here’s the silver lining –– even if you lose your job but your premiums are up to date, you will enjoy the coverage

To conclude, when it comes to individual health plans, there’s no straight answer to how much does personal health insurance cost. The earlier you purchase the insurance, the better it is. Luckily, there are a number of health insurance policies you can choose from and secure both physical and financial health. Always remember that it is never too late to buy a medical insurance policy for yourself and your loved ones


The above information is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale.

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