How Do You Select the Best Family Health Insurance in India?
We often hear that “Health is Wealth” is absolutely true. When making decisions about money and planning for your future, one of the most crucial things to consider is taking care of your health. If you have a family with people who depend on you, it’s really important to make sure that everyone in your family is protected and has enough support if they get sick. Buying family health insurance is a wise step to ensuring comprehensive coverage and financial security for your loved ones in times of need.
What is the Importance of Family Health Insurance?
In the last few years, especially during the pandemic, where a single illness in the family has created financial setbacks. The past two years have been an eye-opener wherein it became apparent that the group insurance cover offered by the company may not be sufficient. Many had to use their savings or money they invested to pay for hospital bills. This was tough for them and made it harder to reach their money goals. Facts show that serious illnesses, like cancer, can even make families really poor.
These reasons highlight why health insurance is important. However, it’s important to carefully review specific terms and conditions before choosing the right family health insurance plan for you.
Choose Group Insurance Coverage
If your company allows you to include your family members in the group insurance coverage they provide, it’s a wise choice to consider this option first. The premiums for group insurance are generally more cost-effective compared to individual health insurance plans. However, even with a group insurance plan, it’s crucial to assess your needs and make sure that the coverage is sufficient. Often, group insurance plans may have limitations and sub-limits, providing only basic coverage. For family protection, you might have specific needs that these broad, standardized plans may not address.
Therefore, it is important to assess the existing gaps in coverage. Consider obtaining a separate additional insurance plan to ensure all your needs are addressed. Specifically, for family health coverage, it is recommended to explore family floater plans.
Family Floater Plans
These plans cover your close family members, like kids and your spouse, with one payment every year. You can make several claims for hospital visits in the same year, as long as the total amount is within the limit set by the insurance.
If you pay money for health insurance, you can get some of it back when you file your taxes. According to section 80D of the Income Tax Act, you can get a deduction of up to Rs. 25,000 every year. Family floater plans are a good choice because they cover everyone in your family at affordable rates.
Choosing a family floater option lets you make a personalized plan that looks after the special needs of each person in your family.
Here are the main 5 considerations to think about when looking at family floater plans
The Extent of Coverage
Another important aspect is to assess the extent of coverage provided for the sum insured. This essentially means that the inclusions and, more importantly, the exclusions of the plan should be examined in detail. Compare it with other plans that offer a similar sum insured coverage. The aim is to select a plan that provides a broad range of inclusions and minimal exclusions. It is also important to ensure that there are no ambiguities when listing the exclusions. Additionally, check for additional coverage options like maternity benefits, pre-existing disease coverage, etc. If things seem unclear, always reach out to the health insurance company for clarification and request documents that support their coverage or exclusion claims. This can be useful for future reference.
Premiums and Tenure
This is the most fundamental aspect to consider for any health insurance plan, including a family floater plan. Family floater premium rates are generally lower compared to individual plans for each family member. This is because every family floater plan covers a small group of people with different levels of risk factors. From the viewpoint of an insurance company, having a diverse risk pool reduces the likelihood of frequent and substantial claims. It is recommended to compare different products to select a plan with the longest duration and competitive premium rates.
Limits, Co-payment, Deductible and Waiting Period
To protect themselves, many health insurance companies include limits and sub-limits. It is essential to select a plan with minimal limits and sub-limits, even if it means paying a higher premium. This ensures a stress-free situation during hospitalization and guarantees the best treatment without worrying about the cost. Look out for co-payment clauses, especially for senior citizens in your family floater plan, and choose the option with the least co-payment. Similarly, while deductibles can reduce the premium, they might lead to higher overall expenses during a claim.
Additionally, examine waiting periods in your health insurance plan, especially if any members have pre-existing conditions when opting for the health insurance plan. During that period, you won't be able to file a claim for that specific ailment.
Hospital List
Many health insurance plans nowadays provide cashless coverage, but this applies only when treatment is sought at one of the network hospitals. If not, the insured person has to go through the process of reimbursements. It is wise to check beforehand and make sure that the list of network hospitals includes those accessible to you, offering top-notch treatment and services.
Add-ons and customization
Frequently, you or your family members might have particular medical conditions, necessitating a plan customized to address these needs. This can be done through add-ons or special customization. Inquire with your insurer to see if there's a provision that specifically covers the particular situation or condition in question.
By carefully considering each of the above points, you can select the appropriate family floater health insurance plan. This ensures that you encounter minimal financial stress during health emergencies.
Disclaimer
This article is provided for the general public interest and serves educational purposes only. The blogs should not be relied upon as a replacement for competent expert advice from a licensed professional to best meet your needs.