A health insurance plan provides health coverage against various life-threatening diseases, keeping the burden off your pocket. But, when it comes to paying the premium for an individual health insurance plan, it can bite a large chunk from your savings. Thus, health insurance companies came up with a family medical policy covering the entire family under one insurance plan. You can now find the best family health insurance plans in India online. This type of health cover can be beneficial or not beneficial for a family, depending upon various factors. So, make sure you check them before making a decision.
Advantages of a Family Health Insurance Plan:
1. Covers the whole family: The main advantage of a family floater plan is that it covers the entire family under a single premium which is lower when compared to that of an individual health insurance policy.
2. Customization: A family floater plan can be customized as per the requirements of the individual and his family members. The coverage amount can be increased or decreased according to the person’s affordability. With the best family health insurance plans in India, various add-ons can also be opted according to one’s needs and requirements.
3. Cashless Hospitalization: Like any other health insurance policy, it also provides cashless claims for pre and post-hospitalization, medical expenses, etc., during emergencies. With over 15500 healthcare providers, cashless claims, and a CSR of 95.2%, group health insurance plan provides one of the best family health insurance plans in India.
4. Tax Benefits: A family floater plan also provides tax benefits under Section 80D of the Income Tax Act, in which the policyholder can claim deduction on the annual premium paid.
5. No Claim Bonus: Some health insurance companies provide a no-claim bonus for their customers if they haven’t claimed any amount from their policy during the previous policy year.
Disadvantages of a Health Insurance Plan for Family:
1. Premium increases with age: As the age increases, the chances of an individual suffering from a disease also increases. This is why the health insurance providers increase the premium of the family insurance policy.
2. Renewability Limit: Some health insurance companies have a fixed renewability age. If you have an individual in your family who has crossed that age, you are at the risk of losing their coverage for that member. Therefore, always choose a policy with the maximum renewability period. The best family health insurance plans in India provide lifelong renewability.
3. A large claim by a single member: If a member of the family claims a large coverage from the policy, the other members are left with little to no coverage in case of any emergency. It leaves you with the burden of paying the extra amount from your pocket. It is the biggest disadvantage of a family health insurance plan. Thus, one should always choose a high sum insured, and if possible, cover elderly members or those with a medical condition in a separate plan.
4. Numerous Smaller claims: Suppose various smaller claims are made by various members of the family, such as in the case of treatment of Coronavirus, the total sum on the treatment might be greater than the amount that you could have paid for an individual insurance policy for all the members of the family. So, a single policy may prove inadequate, which is why you can invest in a super top-up cover.
No matter what policy you choose, it ultimately depends upon the needs and requirements of your family members. So, choose a health insurance policy for your family that fulfils all those needs without financially burdening you.