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How Health Insurance is Important for Your Family? Research Team | Posted On Tuesday, July 30,2019, 03:48 PM

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How Health Insurance is Important for Your Family?



Health is Wealth. Nobody wants to fall sick. Regular exercise and maintaining a healthy diet help stay healthy. You may have witnessed newborn babies suffering from severe illnesses like cancer, cerebral palsy, autism spectrum disorders and so on.

This shows that age is not the only factor impacting health. At the same time, we cannot ignore the age factor completely.

Families face the same problem. Families with multiple earning members can manage medical emergencies easily, but families with a single earning member face financial problems. The solution for such families is getting a family floater health insurance policy.

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How Health Insurance is Important for Your Family?

Family Health Insurance Policy:

A family health insurance policy covers entire family under the plan. Let’s assume you have a family of 4 members, including yourself, spouse and 2 children. Your spouse is diagnosed with a critical illness. In this case, you can claim the medical expenses through the family health insurance policy.

Not all family health insurance policies are the same. Some insurers permit you to include parents, while others allow you add in-laws at an extra cost. Family health insurance plans may be recommended to families with a good medical history. They are classified into 2 categories:

  • Medical insurance: Medical insurance policies reimburse hospitalization expenses. They also offer the cashless facility where the insurer directly settles medical bills with the hospital.
  • Critical illness insurance: Critical illness insurance policies protect against chronic illnesses like kidney failure, heart attack, stroke and others.

See Also: Health Insurance Benefits

Nitesh, who is a mechanical engineer from Bangalore, denied availing a family health insurance policy 4 months ago when an insurance broker contacted him. He declined the plan saying, ‘Health insurance is not for me and even my family is healthy.’

Just after a week, an incident occurred and Nitesh was regretting for not buying the insurance policy then. Actually, Aashika, the daughter of Nitesh, was diagnosed with dengue. He took her the nearest hospital where she was hospitalized for 10 days. Nitesh was happy to see a recovery in his daughter’s health. He had to pay a total medical bill of Rs.50,000 from his pocket. If he had bought a family floater plan, it would have been helpful for him.

Do not be the next Nitesh!

Understand the importance of a family health insurance policy to protect the health of your family. A family floater is a health insurance policy that provides the coverage to the whole family rather than just a single person. It brings all the family members under a single cover. Such a policy takes care of the treatment in case of serious medical conditions and critical illnesses. Purchasing a family floater plan is cheaper than an individual health insurance policy. Insurance companies in India provide tailor-made health insurance schemes for the benefit of people. Based on the medical history of your family, you can choose the plan you want.

Key points

1.The premium for a family floater plan is decided on the basis of the age of the eldest family member. It is quite higher for families with senior citizens.

2.Family floater plans include children up to a certain age. After that age, they are considered adults.

3.They can be renewed up to a certain age, for example, 60 or 65 years.

What is covered under a family floater plan?

  • Pre-hospitalization expenses: Any medical expenses incurred prior to hospitalization are called pre-hospitalization expenses.
  • Post-hospitalization expenses: Any medical expenses incurred after the discharge from the hospital are called post-hospitalization expenses.
  • Ambulance expenses: Ambulance charges are nothing but transportation expenses.
  • Hospital cash: Daily cash allowance is provided by insurance companies. It may be used to cover transportation expenses.
  • Restore benefits: If the coverage gets bushed, this feature will help to reinstate the basic family floater plan cover.
  • Day care treatments: Dare care treatments do not require hospitalization for 24 hours. For example, medical overheads connected to cataract may be treated within a few hours.

What is not covered under a family floater policy?

  • Treatments related to fertility problems
  • Any expenses and treatments incurred due to regular medical health checkups
  • OPD treatments
  • Medical treatments undertaken outside India
  • Any treatments related to pregnancy, maternity, miscarriage, abortion, childbirth, etc
  • Medical treatments taken for stress, psychological illnesses, psychological illnesses, etc
  • Claims raided within the initial waiting period

Types of family floater plans

Family floater plans are classified into two categories, which include medical insurance and critical illness insurance. A medical insurance plan will reimburse the hospitalization expenses in the form of reimbursement or cashless treatment. On the other hand, critical illness, as its name indicates, covers chronic diseases such as kidney failure, heart attack, stroke, diabetes, etc. The insurance provider pays the whole sum assured subject to the policy coverage.  

Tips to choose the best family floater plan

Health insurance is required today for your family since health issues are increasing day by day. It is a must for middle-income group families. There are a few tips to be considered prior to availing a family floater policy. Firstly, it is very important to create a list of basic health cover provided under the plan.

All family floater plans provide daycare overheads, ambulance charges, in-hospitalization overheads, etc. If you are anticipating for a kid, you must choose the plan that includes insurance for newborns. Make sure you ask for the maximum renewal age and the plan you choose should be flexible enough to revise the sum assured. Try to avail seamless cashless hospitalization. More importantly, disclose the medical history of your family honestly to the insurer at the time of purchase.

Prime Benefits of Family Health Insurance Policies:

You can enjoy the following benefits if you buy family health insurance plans:

  • Easy to obtain and include new family members
  • Hassle-free claims (in most cases)
  • Avail discounts and incentives
  • Flexible in nature as some plans allow you to include your parents and in-laws
  • Continuous policy cover
  • Tax benefits

Tips For Choosing the Right Family Health Policy

  • How flexible is your family health insurance plan vis-a-vis renewals? Check this point before availing health insurance and opt for lifetime renewability. When you choose a policy with this feature, you do not have to worry about renewals during your 60s or 70s.
  • Continue paying the yearly premiums for your lifetime renewable family health policy.
  • Check if family floater health insurance policy covers Day Care and OPD expenses. It should cover OPD and daycare treatments to the maximum extent.
  • The plan must be flexible enough to enhance the sum assured. You cannot retain the same sum assured for a longer period of time, as medical expenses are rising each day.

See Also: Health Insurance for Minors

Family Health Insurance Policy by Royal Sundaram

The plan offers a network of 5,000 hospitals. There is no cap in terms of illness-specific sub-limits, consultation fees, room rent and others. The policy covers Day Care procedures, pre and post-hospitalization expenses, in-patient hospitalization expenses, ambulance expenses and so on.

Adults above the age of 18 years and children above the age of 91 days are covered. At least 2 family members must be covered under family health insurance. There are no restrictions on the maximum number of family members covered under the plan.

Family Floater Health Insurance Policy by Bajaj Allianz

The sum assured ranges from Rs 1.5 Lakh to Rs 50 Lakh. Pre and post-hospitalization expenses are covered. The plan has a network of more than 6,000 hospitals across India and is issued for one year or 2 years or even 3 years. The company offers a discount of 2% for 2 years and 8% for 3 years and collects zone-wise premiums. The policy also covers ambulance charges up to a certain extent.      

See Also: 5 Basic Questions You Might Have About Health Insurance                          

Final Word

Family health insurance plans are important as standalone policies do not cover all family members. They offer financial protection when your children or spouse or parents or in-laws get hospitalized. In a nutshell, you can say that your family’s health is secured with a family health insurance plan.

See Also: Health Insurance for Parents

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