Renewing Your Family Insurance Policy? Here Is Why You Need To Re-Evaluate Your Plan

Posted on: Mar 20, 2024 | 3 mins | Written by: HDFC ERGO Team

Renewing Your Family Insurance Policy? Here Is Why You Need To Re-Evaluate Your Plan

A family health insurance plan offers medical coverage for the entire family. This helps you stay protected financially in case any family member falls sick and needs medical intervention. If you see it in another sense, a family health insurance plan is a great long-term investment to help you reap several benefits. Let us learn more about it, its importance, benefits and things one must consider while selecting it.

Importance of Having Family Health Insurance

There are several types of medical insurance. A family health insurance plan is a comprehensive insurance plan that helps you cover more people under one insurance plan. This plan is more affordable and cost-effective than a single person's health insurance plan. It is a great way to do easy financial planning. Moreover, it is easier for all family members to access the insurance as and when needed.

Benefits of Having Family Health Insurance

The benefits of having a family health insurance plan are endless. Here are some of the benefits that you must know of-

Secures All The Members of Your Family

Within a family health insurance plan, you can easily cover all your family members. This includes your spouse, children and parents. Several health insurance plans can also be included for your extended family members. Such family health insurance plans are highly beneficial for joint families, as they are easier to manage.

Long-Term Savings

Family health insurance plans help you save a lot of money. Compared to single health insurance plans, these plans are more inclusive of services. You can also consult health insurance companies or your insurance agent for additional discounts on the existing plan. Moreover, you can also get further discounts if you don't file any claims for the entire year.

Higher Coverage

One of the main benefits of family health insurance is the family floater. As per the family floater scheme, if any family member falls seriously ill, the entire sum of the family insurance coverage can be pooled. This helps you to get more financial coverage. However, the sum of the insurance amount and the rules of the family floater system may vary with different health insurance companies. Thus, you must check the insurance policies beforehand.

Maternity Coverage

In most family health insurance plans, maternity coverage is also included. This includes the entire expense of the pregnancy, such as sonography, medications, hospital visits, delivery expenses, hospitalisation, etc.

Critical Illness Insurance Coverage

A family health insurance plan is also a great way to cover critical illness insurance. This helps you get better financial stability in case any family member has a chronic illness.

Customise the Plan When Necessary

You can easily add new family members to your family insurance plan. This makes it easy for you to manage if you have children in the future. At the same time, you can also remove members from the plan if you plan to make any alterations to the insurance policies. This can be extremely handy if you plan to add your extended family to your health insurance plan.

Things to Consider During Renewal

If you have an existing family insurance plan for a long time, it might help to to consider certainn things while renewing it. This can help you understand the policy better and save money for add-ons that you might not need any more. Moreover, it can help you evaluate the members of your family's health insurance and stay updated on the plan. Here are some things that you must consider during renewal-

If the Sum Insured Is Enough -

The sum insured is the family floater amount that can be highly beneficial in case of a major health emergency. Consider the current health status of all the family members.

If You Are Starting A Family -

If you are on the verge of family planning and are about to start your family with children, it might be the right time to renew your policy.

If Any of The Members Are Having a PED -

In case any of your family members has a chronic illness, it might be time to increase the sum insured of your plan.

Should You Include Your Parents In The Plan -

Adding your parents to the family health insurance plan can offer you great tax benefits. Senior citizen insurance can help you save additional money. If you have not added your parents to the plan, you can consider the same while renewing.

The Bottom Line

A family health insurance plan is a great way to manage rather than going for individual health insurance policies for each member. You can save a lot of money as these plans are more cost-effective. They are more comprehensive and offer you better coverage. Some things that you must keep in mind while renewing your insurance policy are if the sum insured is enough, if you are starting a family, if any of the members have a PED, if you should include your parents in the plan, etc.

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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