Family Health Plan - Why Is It Necessary for You and Your Family?

Published On 23 Apr 2019 By Prashant Srivastava

Family Health Insurance Plan: Know Its Benefits

Sumit, a software engineer in Delhi, refused to buy a family health plan almost two months ago when an insurance broker approached him to buy the policy. 

Sumit, declined the plan, saying “Health Insurance” is not for him.” He’s “hale and hearty” and can walk five miles each day before breakfast.

Then what?

Only three days after he refused to buy the health plan, an incident took place and he was regretting not buying the plan then. 

Actually, Sumit’s daughter, who is now 19 years old, was hit by an outbreak of dengue fever just three days after he ignored the online health insurance proposed by the broker. 

The platelet count of his daughter was dropping faster than ever. She was immediately admitted to a nearby hospital. 

Since Sumit had no health plan for her, he had to break his fixed deposit and paid the hospital bills of Rs. 40 thousand from his own pocket. 

It was then he realized the blunder he had made. 

Most of the time, we understand the importance of mediclaim insurance when we or our dear ones meet an accident. 

Do you want to be next Sumit? 

If not, then don’t underestimate the importance of a health insurance policy. 

Let’s go through this post and dig out why a family health insurance plan is necessary for you and your family.

Family Health Insurance: What Is It?

Family health insurance is an umbrella term that provides coverage to the policyholder and his/her family. Popularly known as a family floater plan, it is applicable to all the dependent family members like children ((up to the age of 23/25 years), spouse, parents.

This plan covers more than one member under a single sum assured with a single annual premium. It takes good care of health insurance needs.

Family health insurance is ideal for a family with a good medical history.

Benefits of Family Health Insurance

There are many benefits of family health insurance. Here is how this type of policy can keep you out of trouble.

Health Protection:

A family health plan in India not just safeguards you, but the health of your loved ones as well. It’s a single policy, designed to cover the entire family. It keeps you away from paying the higher premium separately for every family member. 

Further, a family floater plan empowers you to provide the best medical treatment to your family. 

Basic Coverage:

Almost every family health plan offers basic cover, including the following:

  • Daycare expenses
  • Cashless Treatment
  • In-hospitalization expenses
  • In-patient hospital expenses
  • Ambulance charges
  • Reimbursement for Ambulance Fees
  • Cover for Pre and post hospitalization fee
  • Charges for treatment availed at home
  • Coverage for Routine medical check-ups Expenses
  • Expenses for treatment due to a pre-existing illness 

When you select a plan, make sure it covers a newborn baby. Or you can simply add the baby as a beneficiary to your existing family floater policy. 

Maximum Renewal Age:

In India, most of the insurance companies provide a renewal policy until 60-65 years. However, many insurers are offering lifelong renewal facility these days. 

Flexible Sum Assured:

Other benefits of a Family health insurance policy is that it gives you the flexibility to increase the sum assured. With this facility, you can upgrade the sum assured when required. 

Not only this, if you renew the policy on time and have 'No Claim Bonus' the insurer increases the amount of sum insured. 

Discounts:

A family health insurance policy lets you avail discounts and incentives. Depending on some specific parameters, the plan enables you to enjoy discounts. It’s an easy way to plan yours and your family’s secure future. 

Adding New Family Members:

Unlike in an individual health cover, you don’t need to take a fresh policy each time when required. Family health insurance allows you to add a new family member at your convenience. 

However, it’s essential to go for higher sum assured if you choose to add your parents to an existing family health insurance.  

Coverage for Parents and In-Laws:

Many insurance plans for family members give you an option to add parents and in-laws too. Just a little extra cost and you can have the best health insurance for yours and your spouse’ parents. 

Cashless Hospitalization:

Like other health insurance plans, a family mediclaim plan lets you enjoy cashless hospitalization in-network hospitals. 

Cashless means you don’t need to spend even a single penny when being admitted to a network hospital. 

That’s why it’s important to check out the names of good network hospitals in your area. It’s a must to do before opting for a policy for your family. 

2-Year Policy Cover:

Many health insurance companies in India are now giving an option of 2-year policy cover. This ensures constant hassle-free coverage. The best part is there is no increase in the premium for the selected tenure. 

Excellent Features: 

What sets a family floater plan apart is its features like maternity and newborn baby cover. So, it’s an excellent option for young couples. But, maternity and newborn baby cover features come with a waiting period. 

Tax Benefits: 

By choosing a health insurance plan for your family, you can reap tax benefits. The premium you pay is eligible for exemption under Section 80D of the Income Tax Act. 

Wrapping It Up!

Now, you’re aware of the importance of a family health insurance policy

Would you like to cover your family under a family health insurance plan or break your fixed deposit (if you have) as Sumit did?

At InsuranceDekho, we recommend you to opt for an online medical insurance plan for your family. This will bring a smile on yours and your family face.