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What are the Benefits of a Family Health Insurance Plan?

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The prices of quality healthcare facilities are skyrocketing across the country, and being protected by a health insurance policy with adequate coverage is crucial in this era. However, merely buying a health plan for your family isn’t enough anymore; you must use its full potential to safeguard your savings. While people are aware of how insurance plans work and come to the rescue during medical emergencies, they have little awareness about its various terms and conditions. This lack of information makes them miss out on many benefits that the plan offers. Let’s learn more about maximising the benefits of your family health insurance plan.

Importance of Family Health Insurance

Family health insurance is a type of insurance product that shields you and your household members against medical expenses. The rising healthcare costs have made family health insurance non-negotiable as it saves you from financial distress, whether in an emergency or planned hospitalisation. It ensures that insured members have access to quality healthcare services and specialists without worrying about the costs. All members are covered under one plan and the sum insured is shared by all. You can include your spouse, dependent children, and dependent parents in the plan. Some plans also allow you to include parents-in-law.

The Benefits of health insurance for family

Some benefits of having family health insurance are –

• Financial security:

The obvious and most important benefit of a family health plan is financial protection against skyrocketing medical expenses. The health plan will save your hard-earned earnings because a single hospitalisation can wipe out your savings, thanks to medical inflation. Without insurance, you have to bear all the expenses, potentially leading to debt.

• Easy to manage:

When multiple members are covered under one plan, you can easily manage it, whether it is related to renewal, availing NCB, or other issues. If you have separate plans for each person, it can be difficult to keep track of each plan.

• Affordable premium:

Covering the entire family under one plan will cost less compared to buying individual plans for each member.

• Easy to add new members:

In a family health plan, it’s easy to add a new member, whether it’s your spouse, dependent parent, or a newborn. You have to just inform the insurer and pay the increased premium.

• Tax benefits:

Under Section 80D of the Income Tax Act, you are eligible for a tax benefit of up to INR 25,000 on the premium paid towards the health plan. If you are more than 60 years old, the tax rebate will be up to INR 50,000.

• High coverage:

As all members share the sum insured, any member can avail of the benefit of high coverage based on the terms and conditions of the policy.

• Free health check-ups:

Some family health plans offer free check-ups for all members. This will help to identify potential health risks and seek timely treatment.

Tips to Maximise the Benefits

Here are some tips to help maximise the benefits of having a family health insurance plan –

1. Choose the right sum insured:

Selecting the right sum insured is vital for maximum protection, particularly during a crisis. The sum insured should be adequate enough to meet the medical needs of all members in a policy year. For a family of four members, insurance experts suggest a sum insured of a minimum of INR 7 lakhs.

2. Understand the plan:

Before buying the health insurance plan, you must read the fine print to have an understanding of the policy, which includes the deductible, co-payment, premium, inclusions and exclusions, etc., which will help you make an informed decision and get the most out of the plan.

3. Take advantage of added benefits:

Wellness programmes, preventive health check-ups, discounts at fitness centres, counselling on nutrition, and teleconsultation are some added benefits that many health insurance plans offer. Make use of these benefits to stay fit and healthy and prevent potential health risks.

4. Utilise No Claim Bonus:

The No Claim Bonus (NCB) is the reward offered by your insurer for not filing any claims during a policy year. This NCB can be a discount on the premium or an increase in the sum insured at no extra cost. The NCB discount can go up to 50% for five consecutive claim-free years. While renewing your policy, check for NCB.

5. Use Network Hospitals:

This saves the headache of arranging funds for treatment, especially in an emergency. Opt for network hospitals wherever possible so you don’t have to pay anything upfront except the deductible. It’s better to keep the list of network hospitals handy.

6. Go for top-up plans:

If you want to enhance the coverage of your family plan because it is not adequate, opting for a top-up plan instead of buying another policy is cost-effective. The top-up plan kicks in once the sum insured by your base plan gets exhausted.

7. Buy health insurance at a young age:

Buying health insurance at an early age helps get the maximum benefits because the premium is lower. The insurer considers you low risk as the probability of filing claims is low.

Conclusion

Family health insurance is designed to offer maximum protection to you and your family. While buying health insurance for your family, make sure you read the document carefully so that you can maximise the benefits of the plan. Health plans offer added benefits, too, so you must be fully aware of these benefits and make the most of the plan.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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