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Planning to quit your job for freelancing? Know Your Health Insurance Options

Team AckoJan 17, 2024

Freelancing can be alluring for a lot of reasons. Independence, flexibility, passion, etc. are the terms one often associates with the thought of freelancing. But it is not going to be all sunshine and rainbows. While freelancing can be liberating, it can also be like a maze. There is freedom to navigate your own path but it is riddled with uncertainty. That is why it is suggested to consider all aspects before one takes the leap of faith by quitting a job that offers steady income.

Contents

Many people consider the stability of a 9 to 5 job as a cushion. Monthly salary, provident fund, and group health insurance are top benefits with such a job. It is extremely important to figure out a long-term plan if you are planning to pull the plug on your job and opt for a freelancing career. One of the key decisions related to this is about creating a strong health insurance portfolio to secure your savings in case of medical issues.

Read ahead to know your options (health insurance plans for family and for self) if you are thinking of becoming a freelancer.

Before the Freelance Journey

A lot of employers offer group health insurance for their employees. It is similar to other group plans such as health insurance plans for family. In such policies, employees are insured together under one plan. The employees do not have to pay the insurance premium as it is paid by the employer. Group policies are not extensive but can act as a supporting policy when it comes to comprehensive health insurance cover.

If you are quitting your job to embark on a freelance journey, you must be aware of the fact that your employer provided health insurance policy (if any) will cease to exist. This means you will have to search other options for financial safety.

Health Insurance Portfolio

If you are without an employee health insurance cover, you will have to search for other plans such as an individual plan, health insurance plans for family, a critical illness plan or a combination of such plans to ensure you have the right health insurance portfolio.

Have a look at the table given below for a quick comparison of different health insurance plans that a freelancer can opt.

Plan	Key Points	Premium	Cover
Individual Policy	– Must-have policy	high	high
	– Choose suitable sum insured
	– Check exceptions
Mediclaim policy for family/Family floater plan	– Blanket cover	Low (when calculated for individual members)	moderate
	– One premium for all members
	– Less waiting period
Critical Illness Plan	– Covers specific illnesses in detail	high	high
	– Good supporting plan
	– Lifestyle-related plan

The Balancing Act

On must choose a balanced portfolio where the premium is not too high and the coverage is not compromised. Key decisions revolve around:

Selecting the sum insured for an individual plan
Choosing a critical illness plan as per one’s lifestyle
Deciding on a combination of plans (for example, Individual + for family)

Nowadays, it has become extremely convenient to purchase an individual/family health insurance policy online. You can compare and buy health insurance policies within minutes. The information presented on the websites is simple and easy to understand. If you have doubts, they can be clarified by getting in touch with the insurance company’s support team.

Do not ignore the benefits of individual/family health insurance. Make an informed choice and secure your savings.

All the best for your freelancing endeavors.

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Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet; and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content and before making any insurance-related decisions.