There are various health insurance plans in India – broadly categorised into individual and group plans. Family health insurance is a type of group insurance plan that covers the medical expenses of all family members under one policy. The sum insured amount is shared, and a single premium is paid.
It helps to protect policyholders and their families against unexpected medical expenses and ensures access to quality healthcare. More details about family medical insurance plans will be examined in this article to encourage you to invest in the same.
Need for Family Medical Insurance Policy
Best family health insurance plans are available in three forms: employer-provided, private, and government-provided. You must select the suitable one depending on your needs and eligibility. The right plan will offer the following advantages:
The family medical policy protects against financial burdens in the event of an illness or disease. Health costs can be high, and without insurance, a family may struggle to pay for necessary treatments or medications.
It takes care of the needs of all your family members. You can include yourself, your spouse, your children, your parents and in-laws etc., under one plan.
Tax savings is an additional cost benefit of medical insurance in India. The premium payments are eligible for deduction under section 80D of the Income Tax Act. This leads to lowering the overall out-of-pocket costs for each individual.
When you buy a family medical plan, you only need to manage one rather than multiple individual policies. Keeping track of your coverage becomes convenient, as you do not have to deal with multiple procedures, document requirements, premium payment dates, etc.
Family health plans provide lower premium costs than individual plans, as the premiums are spread across multiple individuals.
You may decide to expand your family in the future. Family health plan takes that into consideration and makes it easy to include new members in the policy.
Criteria to Select the Best Health Insurance Plan for Family
There are numerous options for the best health insurance plans in India, which can be overwhelming. The following parameters can be used to guide your purchase decision:
Go for a company that has a high claim-settlement ratio. This will mean lower chances of claim denial, which will avoid future conflicts. Also, check the document requirements for applying for the claim and the average time it takes to settle it.
If you take a cashless policy, you will be able to enjoy treatment without paying anything upfront. You will, however, be eligible for this facility only if you get treated at a healthcare institution included in the insurer’s network. Therefore, make sure that the network providers are of top-notch quality and are located near you.
Look for a plan that covers all the diseases that your family is likely to suffer from. Plans that offer additional riders, like critical illness cover, personal accident insurance cover, etc., must be preferred. For senior citizens in the family, it is also important that the policy covers pre-existing illnesses with a minimum waiting period. For life-long coverage of medical expenses, go for a plan with lifetime renewability.
Ensure that the policy premiums do not impose an unsustainable burden on your budget. Check the provisions related to deductibles, no-claim bonus, and co-payment, as they influence the final cost of the policy. You can also look for discounts and cashback on online platforms. Keep in mind that as your sum insured increases, the premium obligations will also increase. The right balance must be maintained between cost-effectiveness and the protection amount.
Ultimately, the best family health insurance plans can provide a range of benefits, including comprehensive coverage, convenience, and improved access to quality care. Moreover, if you are worried about the high mediclaim premium in India, family plans are a good option as they are more economical. The buying decision, however, must be made after sufficient analysis using the abovementioned factors.