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Why is Health Insurance Needed for a Family?

TeamAckoNov 8, 2024

Health-related emergencies can impact any family member; no one is immune to them. Therefore, it is of utmost importance to cover all family members with health insurance. However, buying a separate policy for each member can be financially draining. But there’s a solution to this problem: family health insurance. Instead of purchasing an individual policy for each family member, you can opt for a family floater plan to cover them under one policy. Read ahead as this article explores the details related to why health insurance is needed for a family.

Contents

Health insurance for family
Frequently Asked Questions (FAQs)

Health insurance for family

The reasons discussed below highlight the invaluable benefits of having a health insurance policy for your family.

1. Financial protection against skyrocketing medical costs

The escalating costs of medical treatments and procedures are undeniable. A single hospitalisation, a surgery, or a prolonged medical treatment can easily deplete your savings.

Health insurance acts as a powerful safeguard, ensuring that your finances remain intact even in the face of exorbitant medical bills. Years of hard work and dedication have gone into building your savings and investments. Health insurance acts as a safety net, shielding your financial portfolio from being eroded due to unexpected medical expenses, thus providing stability and continuity.

2. Holistic coverage for your family

The benefit of health insurance for a family (family floater policy) lies in its ability to offer holistic coverage to every member of your family. Whether it's your spouse, children, or elderly parents, a comprehensive policy covers the healthcare needs of each family member as the sum insured is shared by the covered members.

3. Wide-ranging coverage

A comprehensive family floater plan is not restricted to covering hospitalisation-related expenses. It also takes into consideration expenses that can occur before hospitalisation, such as doctor visits. Also, post-hospitalisation expenses are covered as well. This means expenses related to the medical condition such as medicines, lab tests, etc., are covered.

Depending upon the policy’s inclusions, non-hospitalisation expenses can also be covered. For instance, expenses incurred towards taking a second opinion can also be covered. Also, daycare treatments where hospitalisation is not essential can also be an inclusion. For example, daycare for cataract, for chemotherapy, etc.

4. Convenient cashless hospitalisation

Emergencies strike without warning, and the last thing you want to worry about is arranging funds for hospitalisation. With many health insurance plans offering cashless hospitalisation, you can get the necessary treatment at network hospitals without any upfront payments, allowing you to focus solely on recovery. Here, the medical bill is settled due to the arrangement between the insurer and the hospital.

5. Emphasis on preventive care and wellness

Modern health insurance policies are not confined to just curative measures. They lay strong emphasis on preventive care and wellness programs. Regular health check-ups and wellness initiatives ensure that your family stays healthier and happier.

6. Keeping you debt-free

In the absence of health insurance, you might be forced to look for loans to manage the expenses. For instance, you may have to reach out to relatives, friends, and acquaintances for money to pay the bills. However, health insurance prevents you from being in such a helpless state.

7. Comprehensive coverage for critical illnesses

Life can throw unexpected challenges your way, including critical illnesses like cancer and heart diseases. Such conditions not only take a toll on your health but also on your family’s finances. Health insurance policies often extend coverage to critical illnesses, ensuring that you can avail of the best treatment without any financial stress.

8. Tax benefits for added advantage

Apart from the evident benefits, health insurance also offers a tax advantage. Under Section 80D deduction of the Income Tax Act, the paid premium can be claimed as deductions, reducing your overall taxable income.

9. Leveraging telemedicine

Families covered by health insurance with telemedicine benefit from convenient, remote access to medical care. This feature offers online consultations with healthcare professionals (usually via an app), which is ideal for minor ailments and emergencies. It reduces wait times and costs, provides access to specialists regardless of location, and maintains continuity of care. Families can save on transportation and gain privacy during discussions.

10. Peace during uncertain times

Life's uncertainties can keep you on edge, especially when it comes to health. Health insurance for a family provides peace of mind. Knowing that you're prepared to confront any health-related financial challenges that come your way, you can face the future confidently.

Frequently Asked Questions (FAQs)

This section showcases some common questions and their answers related to family health insurance.

I already have health coverage from my employer covering my family; do I need a separate policy?

While employer coverage is beneficial, it is available only till the time you are a part of the company. Also, its sum insured might be limited. A separate policy ensures comprehensive coverage for your family's requirements and is not dependent on factors such as your employment.

Can I add my elderly parents to the family health insurance?

Absolutely, family floater insurance plans allow the inclusion of elderly parents, ensuring they receive necessary medical care and financial protection.

Are pre-existing conditions covered by health insurance?

Coverage for pre-existing conditions varies from insurer-to-insurer and from case-to-case. Some policies have waiting periods before covering such conditions, while others provide immediate coverage.

How does individual health insurance differ from family health insurance?

Individual health insurance covers only an individual (one person), whereas family health insurance provides coverage for your entire family under a single policy, offering cost-effectiveness and convenience.

How do I choose the right health insurance for my family?

Evaluate your family's healthcare needs, consider coverage options, network hospitals, and premiums. Compare different plans and read reviews to make an informed decision.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet, and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content, and before making any insurance-related decisions.