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Health Insurance Plans For Family – Advantages & Features

November 14, 2022

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Running a home is a lot of hard work, and catering to the health needs of family members can be expensive. That is why many homes in India now take health insurance plans for family very seriously. This post explains what family health insurance is before highlighting the features and benefits of this type of medical insurance policy.

What are health insurance plans for a family?

Imagine making out-of-pocket payments for in-patient hospitalisation expenses for yourself, your spouse, children and parents. It would be a daunting prospect in today’s world of high medical costs, even for a well-to-do household. Even with a well-paying job, a family emergency involving an urgent need for ambulance services, hospitalisation, surgery and post-recovery care can take a massive toll on your savings. It is where a family health insurance plan can prove to be very useful.

Unlike an individual medical insurance policy that only provides financial protection for the policyholder, a family health insurance policy caters to the medical needs of the policyholder and their immediate family members.

This health insurance plan involves annual payment of just one premium amount. By purchasing a family health insurance plan, you lock in a premium amount on an insured sum that will cover the medical expenses for yourself, your spouse, your children, your parents, and your in-laws.

In addition, you no longer need to worry about making out-of-pocket payments for your family’s healthcare needs. It includes emergency ambulance services, in-patient hospitalisation, general surgeries, prescription medication, and post-operative home care.

Key features of a family health insurance plan in India

Before you decide on which health insurance plans for family to purchase, it is essential to know the key features of a typical family medical insurance policy.

Ideally, your family health insurance policy should cover your entire family, including your spouse, kids, parents, and parents-in-law, unless you have different preferences. Your family health insurance plan should provide all-around financial protection in the event of hospitalisation, general surgeries, outpatient treatment, prescription medication expenses, daycare, and so on.

What is included and excluded from health insurance plans for a family?

There are some significant coverage inclusions and exclusions from health insurance plans for family, such as;

Inclusions:

Family health insurance coverage covers psychiatric treatment for yourself and your family members.

Annual health check-ups for beneficiaries under your family medical insurance plan.

Maternity coverage is included under this plan. This cover provides delivery, termination, emergency c-section, infertility treatment, etc.

Exclusions:

Your family health insurance plan has a waiting period; during this time, there will be no coverage for pre-existing health conditions for yourself and your family members.

Infants under three months of age are excluded from your family health insurance plan.

Once your child attains the age of 18 years, they will no longer be a beneficiary of your family medical insurance coverage.

Benefits of a family medical insurance policy

Choosing a family health insurance coverage far outweighs any perceived disadvantages. Highlighted below are some key benefits worth considering;

Affordability: It makes much financial sense to pay a single premium for medical coverage for your entire family rather than paying separate premiums for each family member.

Stress-free payments: Imagine having to pay separate premiums for each family member and having to keep up with all the associated paperwork that goes with it. It could be a strenuous, time-consuming exercise you do not want to venture into. However, with a family plan, single premium payment is stress-free and eliminates all the hassles of separate policies.

Tax saving benefits: Purchasing a family health insurance plan will save you up to 25,000 INR in tax deduction benefits. In addition, there is another 30,000 IR tax benefit for your covered parents under the policy giving your household a total of 55,000 INR in tax benefits each year. All this is made possible by the Income Tax Act of 1961 (section 80D).

Flexibility: Your family medical insurance plan is flexible in that you can include new members of your household whenever possible. For example, a newly born child can be added to your family health coverage over three months without purchasing a new policy.

Maternity insurance: There is coverage for pregnancy under your maternity insurance, family health insurance. This coverage also extends to fertility treatments for your parents while at the same time catering for the pregnancy termination and delivery costs, including c-section expenses, amongst many other qualified maternity covers.

In conclusion

There are many more advantages of buying a family medical plan, such as other add-ons and discounts. This plan will also allow you and your family to enjoy cashless hospitalisation and protection from accidents, critical illness and even the cost of emergency ambulance services.