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How to Make Health Insurance a Perfect Deal for an Entire Family?

TeamAckoNov 8, 2024

Financial planning is one of the key pillars to having a healthy future for your family. You need to be prepared for the expenses which your family will have to bear in the future and during unwanted circumstances. One such expense is medical expenditure.

Medical costs are a very important issue for many families. The cost of medical treatment is particularly high in private hospitals. Read below about how a health insurance plan for family can help you to take care of medical costs.

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Contents

What Is A Health Insurance Plan For A Family?
Comparing Health Insurance Plan For Family With Individual Plan
Benefits Of Health Insurance Plan For Family
Points To Consider Before Buying Health Insurance Plan For Family
Frequently Asked Questions

What Is A Health Insurance Plan For A Family?

A family care health insurance covers your entire family. It works on a floater basis. This means that you have to pay for a single plan which covers all the members of your family. The sum insured can be availed of by all the covered members of the family.

For example, if a family has 4 members and they have enrolled for a family floater health insurance of Rs. 5 lakh, then the premium and insured amount are shared by the 4 family members. If one of them gets a treatment of Rs. 2 lakh under the plan, the family members can avail of medical treatment worth the remaining Rs. 3 lakh under the plan.

Comparing Health Insurance Plan For Family With Individual Plan

Below we have listed the differences between family health coverage plans and individual plans.

Parameters	Individual Health Insurance	Family Health Insurance
Coverage	It covers a single individual.	It covers all the enrolled members of the family.
Age	The age of the individual is considered to frame the policy.	The age of the oldest member of the family is very important. The policy ends when the oldest member reaches the maximum age cap.
No Claim Bonus	The individual gets it for not making a claim during a year.	If even one family member makes a claim, then no family member can enjoy a No Claim Bonus.
Mid-term Inclusion	A newly married spouse and newborn baby can be included in the plan.	A newly married spouse and newborn baby can be included in the plan. However, children will have to shift to individual plans upon achieving maturity.
Premium	Higher than family health insurance.	Lower than individual health insurance.
Coverage of grandparents and in-laws	Can be covered by individual insurance.	Only a few family health insurance plans cover them.
Ideal Customer	Best for big families with old members.	Good for young couples, and small families with kids.
Pro Tip	If you want individual health insurance, select relevant add-ons for each policyholder.	If you want family care health insurance, ensure that the insured sum is big enough to adequately cover all the family members.

Benefits Of Health Insurance Plan For Family

Here are the major benefits of family health care insurance plans.

Affordability

Family health insurance plans have a lower premium compared to individual health insurance. Instead of paying multiple premiums for each member, you pay a single premium for all the family members. This offers you a lot more value for money.

Easy and Hassle-Free

The best family health insurance plans bring you out of the hassle of managing multiple individual insurance plans. You don’t have to remember multiple renewal dates if you have opted for individual health insurance. Just pay the premium for one plan to cover all your family members at once.

Addition of Family Members

By paying an increased premium, you can easily add a new member to your insurance plan. If you add an older person, it would be a good idea to increase the insured sum. Thus best family insurance plans offer you flexibility for adding members whenever necessary.

Cashless Treatment

The insurance company will take care of all the expenses so that your family members can enjoy cashless treatment across the hospitals covered by the policy. A greater network of hospitals will benefit you more.

Tax Benefits

The premium that you pay for a health insurance plan for family is eligible for tax deductions under Section 80D of the Income Tax (IT) Act.

Points To Consider Before Buying Health Insurance Plan For Family

Here are some factors you should consider before buying family care health insurance.

Sum Insured

You should consider the age of all your family members and pre-existing conditions, if any, to decide if the insured amount will be enough. If the plan also covers your parents, then you may need a higher insured amount. This is because the chances of a medical condition arising and the subsequent medical costs increase with age.

Premium

The insured sum is directly proportional to the premium. If you opt for add-ons, it will lead to a further increase in premium.

Hospital Network

Insurance companies implement their plans in coordination with hospitals. To take advantage of cashless treatment, ensure that your family health insurance policy can be used across a wide range of hospitals.

Claim Settlement Ratio

You would want the claim settlement process to be as smooth as possible. To make sure that’s the case, choose an insurer with a high claim settlement ratio. A higher ratio should give you confidence to trust an insurer.

Waiting Period

Insurers impose a certain waiting period for taking advantage of the insurance plan. Depending on how it is implemented, you cannot make a claim during the waiting period for some or all the diseases covered by a plan. Ideally, you would want the waiting period to be as short as possible.

Exclusions

You must take note of diseases and conditions which are not covered by the health insurance plan for family. Your aims will decide if the exclusions are okay for you.

Overall, this blog has covered floater family insurance in detail. You have to consider various factors to choose the best health insurance plan for family. A family insurance plan is cost-effective, hassle-free and best suited to small families.

You can compare the family health insurance plans offered by different insurers and make an informed decision. Do consider buying health insurance for your family to protect them from the rising cost of healthcare.

Frequently Asked Questions

Here we have answered some commonly asked questions about health insurance plan for family.

How is a health insurance plan for family work?

In family health insurance, you pay a single premium to cover all the members of your family. Thus the insured sum covers all the members of your family. You don’t have to separately buy insurance for each family member.