Everything You Need to Know About Family Health Insurance Plans

One of the key reasons for purchasing health insurance coverage is to protect the family's finances from escalating medical costs. Today, many insurance companies offer a wide choice of the best health insurance plans with a variety of benefits, such as speedy claim settlement, maternity coverage, a larger network of hospitals, and so on. 

What is the definition of family health insurance? 

Family health insurance policies, as the name implies, cover all family members for medical expenses under a single policy. The set sum insured is shared by all family members under the family health plan. This means that if you buy a health insurance policy that covers four persons and has a sum insured of Rs.20 lakhs, anyone can use it to cover treatment costs up to a maximum of Rs.20 lakhs.

The Advantages of Purchasing a Family Health Insurance Policy

Many people would rather get a family floater health insurance policy than individual coverage for each family member. Let us look at the main advantages of purchasing such family insurance plans. In the event of any medical emergency in the family, all the insured members can avail best quality medical care without worrying about the cost. Thus, you can be stress-free about medical expenses in the family. 

Many health insurance companies allow family health insurance buyers to include both parents and in-laws under the same policy. Although you may have to pay an additional premium for covering them, it would be worth it. You can breathe a sigh of relief knowing that you have secured the health of the old-aged family members.

Because family insurance plans do not force you to pay separate premiums for each member of the family, you can cover your spouse, parents, and children under a single policy at a low cost. However, it is recommended that you get a separate plan for your elderly parents because they may have age-related health conditions. In general, insurers calculate policy premiums on the age of the oldest insured member.

Another big advantage of the health insurance plan is the ease with which new family members may be added by paying an additional cost. This saves you the trouble of purchasing new insurance and going through the inconveniences of submitting paperwork, filling out forms, and so on. Furthermore, you have the option to raise the sum insured whenever a new family member is added.

If any of your family members work in a high-risk job, for example, you should consider purchasing an accidental death benefit rider. Similarly, if your partner is about to become a mother, you can purchase maternity insurance.

When purchasing add-ons, you must carefully study the policy terms and conditions to understand the waiting period, sub-limits, and so on in order to make an informed purchasing decision.

Aside from protecting your assets in the event of a medical emergency, health insurance is also a fantastic tax-saving financial tool. The policy premium you pay is tax deductible up to Rs.25,000 every fiscal year under Section 80D of the Indian Income Tax Act. You can claim an additional deduction of up to Rs.25,000 if you pay the premium for your parents.

With your family health insurance policy, you can purchase additional coverage options called add-ons or riders. This will allow you to supplement your current plan's coverage and protect yourself against certain hazards that your regular policy may not cover. As a result, you can assess your family member's healthcare needs and purchase an add-on accordingly.

Create a financial safety net for your family by purchasing family health insurance.

Because there are numerous health insurance plans on the market, you must exercise caution when purchasing a family health insurance plan. The plan you select must meet the medical needs of each member of your family, and, more critically, it must fall within your budget.