Family comes first, and so does their health at all times, and health emergencies can cause a storm in any family. These include accidents, fractures, brain injury, heart attacks, stroke, Covid-19 infection, surgeries, and other illnesses. As they happen unannounced, there is a greater chance of falling into a financial crisis without a financial back-up. Therefore, be ready for any such emergencies with a health insurance plan that covers all your family's medical needs.
Covering daycare costs, hospitalisation, accidents, surgeries, and other medical expenses, a family health insurance plan sails you through in times of a medical emergency. You need to understand all kinds of health insurance plans available to you. Analysing the health emergency needs of your family will help you choose the best health insurance policy and handle the situation with ease. Let us study how a family health insurance plan can keep you out of trouble.
Family Health Insurance
A family health insurance plan provides financial support for your family members covered under a single policy. Individual family members can be insured for various medical needs or together as dependent units. A family health insurance can cover:
- Yourself
- Your spouse
- Your children
- Dependent siblings
- Dependent parents
- Parents in-law
Generally, a total of 6 family members can be included in a single policy. The plan provides a generous insured amount in case of medical emergencies for all family members included in the plan. A single premium is applicable yearly with additional benefits.
Types of Health Insurance Plans Available for Family Members
Following are the plans you can look to have for your family members. Read, compare and pick the best health insurance plan for maximum protection.
Individual Family Health Plan
Here the members of a family are insured separately under individual health plans. Also termed an indemnity health insurance plan, this kind of policy would only cover hospitalisation expenses of the insured individual and has a limited sum insured.
Family Floater Health Plan
A family floater health insurance policy insures all your family members with a single premium. The lump sum amount insured for the entire family can benefit individual members during an illness or emergency. The premiums are cost-effective and beneficial for a new family compared to individual health insurance plans.
Senior Citizens Health Insurance
Senior citizens above 60 can avail of a health insurance policy under the senior citizen health insurance plan, which covers pre-existing illness, OPD consultations, and other related medical expenses. This policy benefits senior citizens who did not have a health insurance plan earlier.
Critical Illness Insurance
Critical illnesses like heart attack, stroke, paralysis, cancer, etc., are insured under this plan. Here the individual insured in the family will be paid the entire lumpsum amount when diagnosed with any such critical illness, irrespective of the treatment cost incurred. This plan should be combined with an individual family or an indemnity plan for added benefits and wide coverage. IFFCO-Tokio, a renowned insurer, launched a critical illness product covering all family members in it, including the proposer, his/her spouse, and dependent children and parents. Similarly, there can be such family-oriented critical illness insurance plans.
Read more - Homework to Do Before Choosing the Best Critical Illness Insurance Plan
Specific Disease Plan
A health insurance plan for a family member suffering from specific diseases like infections, dengue, kidney ailments, heart disease, Covid-19 infection, etc., is termed a specific disease plan. This health plan can also be combined with an individual or indemnity health plan for wholesome coverage.
Top up Plans
A top-up health plan is an extra insurance plan that covers claims exceeding their existing health insurance plans. It is beneficial in case of a medical emergency involving multiple family members that require greater expenses. A top-up plan pays the amount required above your health plan.
Benefits of a Family Health Plan
Following are some of the benefits you will enjoy under a family health plan:
- Benefits for All Family Members: A host of family members can be included in the health insurance plan. The individual member may benefit from the entire sum insured. Also, a new member can be added to the plan without hassle.
- Tax Exemption: The premium you pay is exempted from tax under section 80D of the income tax act.
- Affordable premiums: The premium for a family health insurance plan is much lower than an individual health insurance plan.
- Renewal Benefits: The sum insured can be increased during your annual renewal premium payment. This ensures you are covered under all circumstances.
- Cashless Claims: An emergency involving multiple family members can be covered with no additional costs. The cashless claim facility helps you overcome your illness with ease.
Read more - Consider These Key Aspects Before Buying A Family Floater Plan
Family Health Insurance Plan vs Individual Health Insurance
A few differences when choosing between family health insurance vs and individual health insurance are:
- Insured Amount: The sum insured can be utilised by individual family members, whereas, in an individual plan, it is only the person insured.
- Premium Amount: In a family health plan, the premium is calculated based on the age of the eldest family member, whereas it is calculated based on the age of the person insured in an individual plan.
- Members Covered: All family members are covered under a family health plan, but it only covers an insured person under an individual health insurance plan.
Read more - Individual Health Insurance Vs Family Floater Health Insurance Plan
5 Steps to Choose the Best Family Health Insurance Plan
With a wide variety of family health insurance options available, it can get confusing for you to choose the best for your family. This section discusses how you can get the best plan for your family's medical needs.
Step 1: Study the Plans
As a deciding member in the house, you must ensure you know all the plans available for your family. Do your research on the different plans offered by various health insurance companies, their features, and their benefits. Shortlist and compare them on parameters such as sum insured, term, illnesses included, hospital network, and premiums.
Step 2: Analyse the Coverage
Next would be to study and analyse the coverage you require, which will solely depend on the number of members included in the plan and what benefits it would offer for individual members. Also, the sum insured should be able to cover expenses like a hospital stay, medicines, investigations, etc., since the rising cost of healthcare makes it indispensable to go for higher insurance plans. Top-up plans can help you to cover extra expenses.
Step 3: Check the Hospital Network
Having a wide variety of hospital options under your health insurance umbrella makes it easier in times of emergencies. You should thoroughly assess which hospitals will provide you with cashless claims in case of huge surgical and hospitalisation expenses. The health insurance plan's brochure generally lists the hospitals covered under an insurance company.
Step 4: Choose the Best Premium
Choosing a wider coverage may increase the premium you need to pay. The benefits offered may vary depending on the coverage. Therefore it is wise to weigh your options and choose the plan that covers your needs and individual family members. Paytm Insurance helps you get the best deals and online health insurance from various insurance companies under one roof. Affordable premiums may benefit you when you have just started a family but will increase when more members are included.
Read more - 10 Ways You Can Select the Best Health Insurance Plan for Yourself
Step 5: Don't Forget the Exclusions
Behind the comprehensive benefits offered by most health insurance plans are the exclusions that may be masked. Check for the illnesses and expenses not included in your chosen plan. This will help you analyse your needs and avert a financial crisis.
Conclusion
A family floater health insurance plan is your saviour in times of medical emergencies. Every family must have a health plan according to individual members' needs. The premiums are cost-effective, providing wide coverage of illnesses and cashless benefits in most hospitals. One should choose the best plan according to the 5 step plan.
