In the bustling streets of Mumbai, Ravi, a talented graphic designer, wakes up every day with a sense of purpose. He’s a freelancer, not tied to any corporate office but the master of his own destiny. As he juggles multiple projects and clients, Ravi cherishes the freedom and flexibility that comes with his freelance career. However, he also realises that this newfound independence brings its own set of responsibilities and potential risks, especially when it comes to healthcare and financial stability.
Ravi’s story is not unique. The gig economy in India is on the rise, with more individuals like Ravi choosing self-employment. According to a Niti Aayog report titled “India’s Growing Gig and Platform Economy,” the proportion of freelancers in India’s workforce is projected to rise to 4.1% by FY2030, a significant increase from the 1.5% recorded in FY2018. This surge highlights the growing appeal of freelance work, not only for individuals seeking flexible careers but also for businesses in need of specialised freelancers.
While freelancing offers autonomy and a sense of purpose, it also comes with financial responsibilities and potential uncertainties. Without the safety net of a full-time job, self-employed individuals must prepare for the possibility of unexpected expenses. This is where having a comprehensive health insurance plan becomes essential.
If you’re wondering why self-employed individuals like Ravi must buy a health insurance cover, here are some of the key reasons:
Protection against healthcare costs: Without health insurance, freelancers may find themselves paying significant healthcare expenses out-of-pocket. Health insurance provides access to essential healthcare services, promoting overall well-being and peace of mind.
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Safety net for medical expenses: Accidents and critical illnesses can happen unexpectedly. Health insurance acts as a safety net, covering hospital stays and related costs. This financial relief allows freelancers to focus on recovery without worrying about crippling medical bills.
Cashless claims: Health insurance policies often offer cashless claims, ensuring seamless medical assistance without immediate financial strain. This benefit allows self-employed individuals to maintain their focus on work commitments rather than stressing over hospitalisation bills.
Access to preventive care: Health insurance encourages proactive health measures such as regular check-ups and early disease screenings. This can help prevent future health issues that might disrupt one’s ability to work and earn.
If you’re a freelancer or self-employed individual looking to buy a health insurance policy, here are some of the things you should take note of:
Assess your needs: Compare various health insurance options to find a plan that aligns with your needs and budget. Look for plans with affordable premiums, low or no deductibles, and essential benefits.
Wide network of healthcare providers: Ensure that your preferred doctors and hospitals are covered in the insurer’s network. This ensures easy access to quality healthcare when you need it the most.
Understand costs: Thoroughly grasp the plan’s costs, including premiums, deductibles, co-pays, and out-of-pocket limits or coverage caps. Pay attention to specific limits, such as room rent or illness-specific caps.
Exclusions and waiting periods: Be aware of policy exclusions, pre-existing disease clauses, and any waiting periods before coverage begins. Overlooking these details could affect claim pay-outs and your finances.
Insurer reliability: Keep an eye on key metrics like claims settlement ratio (percentage of approved claims) and incurred claims ratio (proportion of premiums used for settling claims). These metrics reflect the insurer’s reliability in fulfilling its promises.
Freelancers often find themselves not only as the architects of their own careers but also as the primary breadwinners for their families. In this scenario, the financial well-being of the entire household hinges on the freelancer’s ability to work and generate income. Therefore, ensuring the health and well-being of their family members becomes not just a personal commitment but a professional responsibility.
Here are some ways in which self-employed individuals can also plan their family’s health insurance.
Family floater plan: The ideal way for freelancers to secure health insurance for their families is by opting for a family floater plan. This type of plan covers both the self-employed individual and their family under a single sum insured. Since it operates on a floater basis, the coverage is shared among all family members, making it more economical for the freelancer.
Super top-up cover: If you anticipate a need for an enhanced sum insured in the future, consider a super top-up cover. This is an affordable way to increase your coverage. A super top-up plan operates through cost-sharing, meaning it covers expenses beyond a specified deductible amount. This deductible can be met through a different health insurance policy as well or out of pocket by the insured.
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As freelancers continue to shape the future of work, it’s essential that they prioritise their health and financial security. The gig economy offers opportunities for autonomy and creativity, but it also demands careful planning and preparation. Health insurance is not just an expense; it’s an investment in your well-being and peace of mind. So, if you’re a freelancer like Ravi, take the initiative to secure your health and the health of your loved ones. It’s indeed important to make health insurance your safety net in a world of uncertainties.
This column has been written by Yogesh Agarwal, Founder and CEO, Onsurity. Views expressed are personal