On the busy streets of Mumbai, Ravi, a talented graphic designer, wakes up every day with a sense of purpose. He is a freelancer, not tied to any agency and is the master of his own destiny. While juggling multiple projects and clients, Ravi values his freedom and flexibility that comes with a freelance career. But he also recognizes that this newfound independence brings his own unique responsibilities and potential risks, particularly with regard to health care and financial stability.
Ravi’s story is not unique. With the rise of the gig economy in India, more people like Ravi are choosing to become self-employed. According to her 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 2030. , a significant increase from his 1.5% in 2018. This surge highlights the growing appeal of freelance work, not only for individuals seeking a flexible career, but also for companies in need of professional freelancers.
Freelancing offers autonomy and a sense of purpose, but it also comes with financial responsibility and potential uncertainty. Without the safety net of a full-time job, self-employed people must prepare for the possibility of unexpected expenses.Here, a comprehensive Health insurance
If you’re wondering why a self-employed person like Ravi should have health insurance, here are some of the main reasons.
Protection against medical expenses: Without health insurance, freelancers may end up paying large medical bills out of pocket. Health insurance provides access to essential medical services and promotes overall health and peace of mind.
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Safety net for medical expenses: Accidents and serious illnesses can occur unexpectedly. Health insurance acts as a safety net and covers hospitalization and related costs. This financial relief allows freelancers to focus on their recovery without worrying about expensive medical bills.
Cashless billing: Health insurance plans often offer cashless billing, ensuring seamless medical assistance without any immediate financial burden. This benefit allows self-employed people to continue focusing on their work without stressing about hospital expenses.
Access to preventive care: Health insurance encourages active health measures, such as regular health checkups and early disease screening. This can help prevent future health problems that could interfere with your work or income.
If you are a freelancer or self-employed person and are considering purchasing health insurance, please keep the following in mind:
Assess your needs. Compare different health insurance options to find a plan that fits your needs and budget. Look for plans with affordable premiums, low or no deductibles, and essential benefits.
Extensive network of healthcare providers: Make sure the doctor or hospital you want is in your insurance company’s network. This makes it easier to access quality healthcare when you need it most.
Understand costs: Thoroughly understand the cost of your plan, including premiums, deductibles, copayments, out-of-pocket limits, and coverage limits. Be aware of certain restrictions, such as room rent and per-illness limits.
Exclusions and waiting periods: Be aware of policy exclusions, pre-existing condition provisions, and waiting periods before coverage begins. Overlooking these details can affect your insurance payout and your finances.
Insurance company credibility: Pay attention to key metrics such as claims payout ratio (percentage of claims approved) and claims ratio (percentage of claims used to settle claims). These metrics reflect the reliability of an insurance company in fulfilling its promises.
Freelancers often find themselves not only the architects of their own careers, but also the main breadwinners of their families. In this scenario, the financial well-being of the entire household depends on the freelancer’s ability to work and earn an income. Ensuring the health and well-being of your family is therefore not just a personal responsibility, but a professional responsibility.
Here are some ways you can plan health insurance for your family even if you’re self-employed.
Family floater plan: The ideal way for freelancers to secure health insurance for their families is to choose a family floater plan. This type of plan covers both the self-employed person and his or her family with a single sum assured. Operating on a floater basis, coverage is shared by the entire family, making it more economical for freelancers.
Super top up cover: If you anticipate that you will need to increase your insurance amount in the future, please consider super add-on coverage. This is an affordable way to increase your coverage. Super charge plans work through cost sharing. In other words, it covers costs that exceed your specified deductible. This deductible can also be paid through another health insurance plan or out of pocket by the insured.
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As freelancers shape the future of work, it’s essential that they prioritize their health and financial security. The gig economy offers opportunities for autonomy and creativity, but it also requires careful planning and preparation. Health insurance is more than just an expense. It’s an investment in your happiness and peace of mind. Therefore, if you are a freelancer like Ravi, take the initiative to protect your health and that of your loved ones. In an uncertain world, having health insurance as a safety net is certainly important.
This column was written by Yogesh Agarwal, Founder and CEO of Onsurity.The views expressed are personal
