Investing in comprehensive family health insurance plans goes a long way in safeguarding the health and wealth of those who matter the most to you. The increasing healthcare costs can be tough to finance on your own, especially if it is for prolonged hospitalization.
Family health insurance covers the insured members for medical expenses incurred due to an accident or illness up to the sum insured amount and as per the policy terms.
In this article, we will learn more about family health insurance plans with floater sum insured, the advantages of such plans as well as important features to look for before finalizing the best health insurance plans for families that are meant to serve you, and your loved ones for a lifetime.
What is Family Health Insurance?
Health insurance plans for a family are perhaps the most popular and sought-after healthcare coverage policies in India. They cover all the insured family members under one single plan with an aggregate or “floater” sum insured.
In effect, the spouse, children, parents, parents-in-law, etc., are generally covered by all family health insurance while some insurers allow extended family members such as siblings, cousins and aunts and uncles to be included as well along with immediate family members. Financially savvy families are known for using health insurance to save money.
Floater Sum Insured
Family floater health insurance plans offer a floater sum insured meant for all the members who are covered under the single policy. This means that the amount is applicable for each person, who can avail coverage up to the sum insured amount individually with the balance remaining (if any) to be distributed among the other members.
One obvious limitation to this type of plan (floater sum insured) is that if anyone member undergoes hospitalization, the differential sum insured is all that will be available for the other members. Let us understand this with an example.
The Bhatia’s are covered under a family floater health insurance plan of Rs. 5 Lacs sum insured amount. Mrs. Bhatia was admitted to the hospital for 5 days due to pneumonia and high fever. The total hospital bill came to Rs. 90,000. Then, Mr. Bhatia had to undergo an appendix removal surgery, which worked out to Rs. 75,000. As a result of these two cases, the net sum insured amount left for the Bhatia’s (including their two children) would be Rs. 3.35 Lacs (5 Lacs minus 1.65 Lacs).
In comparison to individual health insurance plans where each insured member can avail themselves of treatment up to the individual sum insured amount, family health insurance has a slight disadvantage as the overall sum insured reduces by the number of medical expenses incurred when any member undergoes a treatment. However, there are many advantages to buying family health insurance plans different families need to be aware of.
Advantages of Investing in Family Health Insurance Plans
- Affordable premium: Because all the family members are insured under the same plan, the annual premium payable works out to be more economical compared to individual policies’ premiums.
- Easy to manage: Family health insurance plans are hassle-free, in that you have to renew and pay premiums for just one policy for the entire family once a year.
- Convenient addition of new family members: You can easily add new family members under the same family plan (provided the relationships are allowed for addition) without having to take a separate policy each time.
- Add-on covers: Family floater plans come with multiple add-on options or riders which can be selected as per personal preference for an extra premium. So, coverages for critical illness, maternity, international travel, etc. can be availed according to your family’s needs.
- Tax benefits: Section 80D of the Income Tax Act allows up to Rs. 50,000 tax exemption towards health insurance premium payment for non-senior citizens.
Important Features to Consider in Family Health Insurance
Listed below are some crucial policy features to look out for to help you decide on the best Mediclaim policy for your family:
- Remember that the premium is calculated based on the eldest insured member’s age. Therefore, it is advisable to not include your elderly parents or in-laws in the family health insurance. Instead, opt for senior citizen policies for them.
- Make sure that the age at entry is equal to or greater than the eldest member who will be insured in the floater policy.
- Choose a sufficient sum insured amount such that it is good enough for the combined family. Also look for features that allow enhancement of the sum insured, such as reinstatement or restoration benefit, No-claim Bonus, etc.
- Check to confirm that there are enough network hospitals nearby your location for timely and cashless access to medical facilities.
- Confirm that all daycare procedures are covered. This is important because health insurance can be very expensive.
- Opt for a plan with a low waiting Period.
- Thoroughly go through the list of exclusions and terms and conditions in the policy wordings to make sure that your specific medical needs are not left out.
- Go for an insurer that maintains fast and hassle-free claims settlement process.
There are numerous options available for health insurance plans in India for families with multiple benefits and complex conditions, which makes it difficult to zero in on a final selection. This is where a website like SANA.Insure can be of great help – here, you can easily select up to 3 plans to compare them against 45+ key policy features, and comfortably purchase your shortlisted policy online. Should you need any assistance along the way, a Health Insurance Expert at SANA.Insure can guide you with the right inputs to choose the best family health insurance plans in India. Please feel free to reach out over WhatsApp (+918278271818) or a phone call (18002028118).
Wish you a healthy and happy life!
About the Author
Nayan Ananda Goswami is Head – Group Business and Retail Sales & Service at SANA Insurance Brokers Pvt. Ltd. (SANA.Insure). He has more than 20 years of experience in the Insurance sector having successfully managed retail distribution and alternate sales channels with insurance companies as well as insurance brokers. Nayan has pioneered the e-distribution model of Insurance through the e-governance platform in India, winning national and international awards and accolades. The views expressed in this article are his own.