Exploring The Top Advantages Of Buying A Family Health Insurance Plan

By Author: pavan99
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If you are looking for health insurance and do not know which one to go for, a family health insurance policy can be the best bet. Popularly known as family floater plans, these are policies that people can invest in to avail health coverage for all family members under a single policy. While health insurance plans are also in high demand today, they are suitable only for a single person and need to be purchased separately for everyone. A family floater plan is thus the answer to eliminating people’s hassles regarding umbrella medical coverage for all family members.
There are various advantages of a family health insurance plan that the policyholder and mentioned members can benefit from. Staying informed of these benefits helps plan one’s healthcare finances, thus enhancing the overall healthcare security of the family.
Top Benefits of Purchasing a Family Health Insurance Plan
a. A single plan for all family members
One of the top advantages of a family health insurance policy is that a policyholder can cover all family members with a single insurance plan. It thus eliminates the need to purchase ...
... a separate healthcare policy for each family member. Since there is no limit to the number of family members who can be included under a single plan, these policies fit best for families of any size.
These plans cover all family members with close blood ties like parents, spouse, children, as well as siblings under a single policy. However, if the parents are senior citizens, it is best to purchase a dedicated cover for them due to their high and specified healthcare requirements.
b. Reduced premium than individual plans
Family floater plans are also opted for by many because they turn out quite affordable. As against an individual health insurance policy, these plans are much cheaper. It is typically so for two main reasons. First, going with an individual plan requires the purchase of multiple policies for each member which can have a high cost.
Secondly, separate coverage for each family member, which means extra cost for the insurer. This is, however, not the case with a family health insurance plan though. You need to buy only a single policy and pay a one-time premium. Plus, the total sum insured is available for each family member as the coverage.
c. Shared coverage for all family members
Interestingly, family health policy also offers a choice between proportionate coverage for each member and one shared coverage for each. This simply means that for the total sum insured available, the coverage allocation can be made for each family member proportionately. Conversely, a policy feature can also be chosen where shared coverage is available for all family members. This is to say that in case a single family member needs healthcare financing amounting to the total coverage value or a part of it, they can make such a claim too.
d. Tax savings applicable annually
Among the best benefits of a family health insurance cover is that the premium paid to avail the coverage can be claimed as a tax benefit when filing your Income Tax Return annually. This provision is made under the Income Tax Act,1961, available as a deduction under Section 80C. The deduction amount applicable is limited to Rs.25,000 annually though for these policies. Where such a policy is availed for a senior citizen, the deductible amount increases to Rs.50,000 annually.
Conclusion
These extensive benefits available with family health insurance plans ensure that your family remains worry-free across the insurance term regarding healthcare financing during emergencies. It is wise to compare insurers when selecting a policy as it can help get the best coverage available in the market. Today, many top general insurance companies in India provide family health coverage, ensuring their widespread accessibility. If you are selecting a family floater plan where the entire sum insured is available for each family member if and when needed, it is best to choose small coverage terms. This is because a recurring claim from multiple members can exhaust the coverage easily and a new coverage may be required.