When a medical emergency hits any of your family members, you need emotional support and financial assistance. This is because a sudden medical crisis can increase hospital costs, requiring you to seek ways to manage the expenses.
Under such circumstances, having a health insurance plan can be a lifesaver. However, given the Joint size of most Indian families, it is not always possible to ensure coverage for all members. In this regard, choosing the right health insurance plan becomes vital to ensure that all your loved ones receive the much-needed financial coverage during a medical emergency.
Let’s explore the types of health insurance plans for families, how to choose the best family health insurance policy, and more.
What are the Types of Health Insurance Plans for Families?
When it comes to health insurance for family, plans typically fall into two categories:
1. Family Floater Plans
These plans provide a common sum insured that can be used by all family members. They are usually cheaper than individual policies and enable any family member to utilise the cover. The only disadvantage is that a high claim by one member can wipe out most of the total sum insured, thus leaving the others with minimal cover.
2. Multi-Individual Plans
These plans give individual coverage amounts for every family member within a single policy. Each individual has their own sum insured and premium, making it potentially more cost-effective for families. However, multi-individual plans are comparatively costlier than family floater plans due to the personalised coverage.
How to Select the Best Health Insurance for Family?
Mentioned below are the essential factors to keep in mind at the time of availing health insurance for family:
● Premium Pricing
When exploring different health insurance plans, check the monthly or annual premium price for family coverage. Evaluate how much coverage every family member gets from that plan. Avoid overpaying for unused features or underpaying for necessary coverage.
● Value of the Plan
Apart from premiums, deductibles for procedures such as hospital stays, lab tests, or costly medications may vary widely between providers. Review coverage situations for family members who often rely on healthcare and project out-of-pocket costs annually to grasp the plan’s real value.
● Deductibles
Clarify whether the deductible applies to the family as a whole or individually. Check when the annual deductible resets—either on the policy renewal date or at the start of the calendar year—as this affects your family’s medical budget.
● Age-Related Services
Ensure that essential services like well-child visits, vaccinations, paediatric care, and OB/GYN care are covered and within reach for younger family members.
● Assess Network Details
It is essential to ensure that the policy includes network hospitals within your area where you can access your children’s current paediatrician or family doctor.
What are the Benefits of Availing Health Insurance for Families?
The following are the common advantages of availing health insurance:
● Family Coverage
A family health policy insures all immediate family members under one policy. This generally includes you, your spouse, dependent children, and dependent parents or in-laws. In some cases, extended family members can be added too. This makes it an easy, one-stop solution for your family’s health insurance needs.
● Low Premiums
One of the greatest advantages of a family insurance plan is that it is cost-effective. The premium is significantly lower than purchasing individual health plans for every member. Furthermore, most insurers provide discounts when you cover multiple members under a single policy, allowing families to save on total health-related costs.
● High Coverage for All Members
In a family floater policy, the total sum insured can be claimed by any member in need. This implies that if one family member needs costly treatment, they can utilise the entire coverage amount. It provides flexibility and guarantees that Joint medical expenses can be met without affecting your savings.
● Availability of Maternity Coverage
Many family health insurance plans include maternity coverage, making them especially advantageous for young couples likely to start a family. Typically, these policies encompass prenatal care, childbirth, and postnatal support expenses. However, reviewing policy limits and waiting periods is sensible before selecting a plan.
● Comprehensive Coverage Options
Family insurance policies offer many features, including hospitalisation, ambulance fees, day-care procedures, and more. You can compare and choose a plan that provides the maximum benefits to ensure complete coverage for your loved ones.
● Easy Addition of New Members
These policies enable you to include new members, like a newborn child, within the policy period. You simply need to notify the insurer and pay a slightly higher premium, and the new family member will be insured without much trouble.
● Tax Benefits
Buying a family health policy also saves on taxes. You are eligible for a deduction of up to ₹25,000 under section 80D of the Income Tax Act. If you cover elderly parents, the deduction goes up to ₹50,000.
The range of health insurance plans in India can make it overwhelming to choose the right plan. By understanding the types of health insurance for families, you can select the best possible coverage plan for your family without tampering with your savings. However, choose an insurer with a solid market reputation and a high claim settlement ratio.
This ensures that you and your loved ones will get coverage when it matters the most.
