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Why Covering your Family in a Health Plan is a Must?

Due to the rising expenses incurred by a family, Health insurance can turn out to be stepping stone to ensure you and your loved ones are taken care of. It makes sure in case any hospitalization need arises, that it doesn’t take a toll on your mental and financial health. Hospitalization can be either due to an accident or due some illnesses, any which way can take away a major chunk from your finances even affecting your savings due to excessive amounts in hospital bills, cost incurred due to diagnostic tests and its medicines and talking of uncertainty if one faces loss in wages and other incidental expenses the situation could be catastrophic. 

So, it becomes a worthy reason as to why Health insurance for your family and it’s become an essential part of one’s financial planning peaceful well-being. Along with many reasons, including the rising medical treatment costs, a family health insurance plan is inevitably a must-have in today’s scenario. Also, one can clearly understand the need of having a health plan with the fact that even government is taking strong initiatives to provide for the not so privileged citizens who can’t afford to have health insurance.  Not to mention the fact that we slog each and everyday day of our lives for safety, security and well-being of our families. So, we can’t be negligent when it comes to buying a health insurance policy for the ones’ we love the most.

What to consider when buying cover for your entire family in a single policy?

Let us first understand why is it important to cover the entire family in a single health Insurance policy- 

Why consider buying health insurance for your family? 

  • Health insurance is a must in today’s times, without which, it’s difficult to afford emergency medical expenses, in case of accidents or illnesses.
  • The individuals with health issues and having no health insurance policy are usually at a higher risk of healthcare hazards when compared to the one with health insurance and health issues.

Today youngsters face higher levels of stress due to health complications and other mental health problems. Opting for a health insurance is a great step they can take forward towards their health and safety. There’s no exception when people want their families to be safe and secure so buying a family health insurance policy gives an individual the peace and security of their family’s health and well-being. The cashless network feature, in which the insurer clears medical bills with the hospital while the policy holder can concentrate on them and their loved ones. Since it’s true that any sudden illness in the family can be very problematic for the members of the family.

Diseases due to poor lifestyle

The modern-day man has a very hectic schedule often lacking physical activity on addition to which involves unhealthy food habits and stress. These habits promote lifestyle illnesses which are hazardous. Though it’s true that it’s necessary to healthy food and physical exercise, health insurance assists in any sudden medical illnesses that may occur to any of the family members.

There’s a lot for a health insurance to offer like-

  • Almost all policies offer coverage of pre- and post-hospitalization costs.
  • Flexibility to choose between individual health plans and family floater plans.
  • In case of emergencies the policy covers the ambulance costs.
  • Most of the policies considers of daily care procedures.
  • Some policies often include doctor’s fees.
  • It’s most likely for many policies to include operation theatre charges.
  • Many policies include free yearly checkup for their policy holders.
  • They also cover in- hospitalization charges like the room rent, diagnosis procedures, nursing charges, ICU, etc. 
  • Many insurance providers offer cumulative bonuses or reduction in premium amounts or maybe both to their policy holders.
  • People choose such policies when their employers’ policy is not enough.

Its offer advised that’s it’s not proper to depend on the health insurance provided by the employer. Reason being most of those have insufficient cover and the holder is eligible, only if you are employed with the company. It is best to buy your own personal health plan even though the company’s health insurance has got you covered. Applying for family health insurance would be even better if you have a family and are looking out to buy health insurance policy.

Tax Benefit

If you buy a health insurance at an early age, it can help you reap tax benefits under Section 80D of the Income Tax Act, 1961. 

Collection of higher bonuses

In India health insurance companies offer their policyholders with some bonuses on the maximum sum insured or offer certain discount on premium, or even combination of both, for not making a claim in given policy year. With each year which is claim free, the policy holder can claim offer on the bonuses.

Now, when it comes to selecting one all-weather policy for your family the best option to go for is the family floater health insurance policy, the reason for the same are as follows-

  • Health emergency might occur to any loved one

Medical emergencies often come unannounced. If a member falls ill and requires medical help, you need to pay for the medical expenses incurred. Now the financial stress of the medical emergency remains at your head even when anyone from the family falls sick due to any illness. That is the reason you need a family floater plan.  It takes care of the entire family in case of emergency due to any accident or illnesses.

  • The plan covers verticals of different sort

A family floater health plan covers all members in a single plan. In this there is a single maximum sum insured and only a single premium which is payable. So, you don’t have to go through the issues of having individual health insurance plan for each family member and keeping in mind always to pay multiple premiums regularly. This alternative plan is also a cheaper than buying separate health plans. Also, the plan extends insurance coverage for all of your family members. Any member of a family can use the sum independently as and when required. So, all members of the family are covered of the insurance, together and individually.

Choosing the Right Plan

Let’s look at the steps required for choosing the right plan, here is what you need to know. You must know your needs on basis of which plan to choose that is right for the family. These are two aspects to look at these categories of health plans:

  • For salaried individuals

If you are a salaried employee, then you might be covered under health insurance plan offered by your employer. It generally covers your entire family but it is quite basic in terms of its coverage. It is for your entire family but it might not cover your entire family for some specific ailments mentioned in their terms of the policy. There’s no lifetime renewal system in this plan. The policy comes to an end as soon as you leave from the company or when the company fails in renewing the plan for any cause whatsoever.  It is always a better plan to cover such employer policies with a personal health insurance plan.  Family floater top-up plans and family floater super top-up plans are always ideal so it gives a diversified family coverage option.

  • For self-employed individuals

If you are self-employed or an entrepreneur or a freelancer, then it is necessary for you to have a diversified plan covering your entire family. If budget is your main concerns, it’s better to always buy a basic plan and add on a supplement coverage amount with a top-up or super top-up plan as per your requirements.

It is definite that a family needs protection from medical emergencies.  If any member of your family faces any medical conditions, you will have to undertake duty of being consistent in your process. Purchase a good health plan which is the best in class in the market and matches your needs keeping in mind the costly medical bills and rising costs.


Should I opt for a family medical insurance plan?

A health insurance plan suits various types of families. Whether you are only a couple or maybe living in a joint family, you can cover a large number of your family members under the secure umbrella of a single-family floater health insurance policy.

What if I exhaust the maximum sum insured of my policy?

A family floater health insurance plan offers a single sum insured to all the family members included in the policy. In most plans offered by insurers, if you exhaust the maximum sum insured, you will not be able to take further claims during the policy tenure.

What are the tax benefits, if any, I get if I opt for Family Health Insurance Policy?

Yes. In accordance to Section 80D of the Income Tax Act, 1961, you can claim tax benefits on your family health insurance plan up to the limits prescribed.

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