Understanding Family Health Insurance Plans

Advantages of a Family Health Insurance Plan

1. It is more affordable

   The possibility of suffering from a severe ailment is increasing by the day. Pollution levels are soaring, most food items are adulterated, and stress is inevitable even in the lives of children. Purchasing adequate health insurance for your dependents is no longer a choice but a necessity. Family health insurance plans make it more affordable to cover your loved ones. Instead of paying premiums for multiple policies, you pay a single amount for one plan and secure everyone under it.

2. It is hassle-free

   Remembering to pay for different policies can be exhausting and confusing. Every policy may follow a different schedule. You may pay monthly installments for some and yearly for others. Managing them all along with work and other commitments can be hard. A family plan bridges this gap and simplifies payments, making the process entirely stress-free.

3. It facilitates tax savings

   You can claim tax benefits on the premium paid for family health insurance plans under Section 80D* of the Income Tax Act of 1961. You can claim up to ₹ 25,000 for yourself and additional an ₹ 30,000 for your parents, which makes a total of ₹ 55,000 in a given financial year.

4. It makes it easy to secure new members of your family

   If you have just had a baby, you can add the new member of your family to the existing family plan. You do not have to buy a new policy as and when you have children. Family health insurance plans also provide the option of adding parents-in-law, so your parents and your spouse’s parents are all secured under one policy.

5. Discounts and additional covers

   You can enjoy benefits like a maternity cover or family discounts depending on the number of members and their ages. These add-ons make family packs a more viable option than individual plans.

Features of Family Health Insurance Plans

1. Cashless hospitalization

   Family plans allow cashless hospitalization for all members. This eases a challenging and chaotic situation and offers excellent liquidity.

2. Maternity cover

   Family plans offer maternity riders for expecting mothers. Parents can also cover fertility treatments under the policy. Additionally, the policy covers delivery expenses, c-sections, termination, etc.

3. Accident cover

   A family health insurance plan provides an accident cover in case of an accident. It also offers a waiver of premium in case of permanent disability.

4. Critical illness cover

   In case of a critical ailment, you receive a pay out on the first diagnosis of the listed medical condition. You also do not need to produce hospital bills to receive this pay out.

The Need for a Family Health Insurance Plan

Exclusions and Inclusions in a Family Health Insurance Plan

1. Exclusions
   • Only children older than 91 days can be included in such plans.
   • Once your children cross the age of 18, they are no longer included in the family plan.
   • There is a waiting period in these plans. Pre existing medical conditions are not covered during this period.
2. Inclusions
   • Family health plans include psychiatric benefits and cover the cost of such treatments.
   • Annual medical checkups are offered to all your family members covered in the policy.
   • The plan provides a maternity benefit for expecting mothers. This includes termination, delivery, emergency c-sections, infertility treatments, etc.

To sum it up

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