Getting a health insurance cover is the first move towards financial stability and makes for the best investment option. It is necessary to invest as early as possible to reap the many benefits that health cover offers. Opting for medical insurance for family has its advantages. It is one of the various types of health insurance plans in India. Other plans include individual medical insurance, senior citizen insurance plan, critical illness plans, maternity insurance, and disease-specific insurance plans.
Individuals should understand their present needs and then choose a plan that fits the requirements. A medical policy for family may prove beneficial in many ways. But, you should first analyze if it is the right cover for you and your family members.
Let us understand if medical insurance for family is a suitable choice for you.
Know how a family medical insurance policy works?
Before you decide whether you should buy family health insurance or not, it is necessary to understand how the policy works. It is a health insurance policy that will cover you and your immediate family for a single floater sum insured.
You have to pay a single premium to the insurer, and the amount is based on many factors, including the eldest member’s age. If there is a senior citizen covered in the plan, the premium will be high.
The sum insured is not restricted to just one person; it is shared by all the members and available up to the maximum limit for each insured person.
Some reasons to opt for family health insurance
One should know that medical insurance for family gives coverage for a range of health care expenses, including hospitalization, day care treatment, ambulance, and pre and post-hospitalization. It protects the financial health of a family at a time when medical inflation is increasing.
Furthermore, a family health cover is advantageous for the following reasons:
Affordable coverage: You can get a medical policy for family for a low premium, compared to the total cost you will pay if you get separate health policies for each family member. You can compare various policies and premium rates using an online premium calculator to select the best plan.
Financial Protection: If you are covered in a group mediclaim by your employer, you should still buy family health insurance. It will offer financial protection even when the group mediclaim is no longer available when you leave the company. Also, you need not worry about getting another policy as there is a lifetime renewability option.
Maternity Cover: A medical insurance for family also provides maternity benefits that will cover pregnancy care expenses. Thus, if you have a family or plan to start a family, then opting for this policy is recommended.
Tax Benefits: If you are looking for maximum tax benefits, you should opt for a family floater plan. The insured can get up to Rs 1 lakh tax deduction on the premium if the proposer and insured members are over 60 years. One is entitled to the medical insurance tax benefits as per Section 80D of the income tax act.
When should you go for an individual health cover?
If there are senior members above 60 years in your family, it is not advisable to include them in a medical policy for family. Since premium depends on the eldest member’s age, it is likely to be higher. Moreover, they have different health care needs, so you should get a plan designed for them, known as a senior citizen health insurance plan.
If you or any family member has an illness or medical condition, the premium will be higher even in such cases. If there are more chances of an emergency or planned hospitalization, go for a separate individual cover where the entire sum insured is available for a single individual.
To conclude, make a clear assessment of your needs and consider your age, family members’ age, health conditions, and estimated medical expenses. It will enable you to decide whether it is wise to go for a family health cover or an individual policy.
