The affinity that we share for our family is incomparable. We make sacrifices and decisions that are in the best interest of our family. But have you thought of how to keep your family safe when there is an unexpected medical emergency? Finances are the last thing you should worry about at such times and focus on their well-being.
A health insurance plan is the master key to ensure your family always has the required medical cover. As per the 75th round of NSS survey, the median medical expenditure in urban areas excluding maternity facilities was ₹ 26,475. These costs can increase depending on the intensity of the illness. Family health insurance plans safeguard from medical treatments leading to a debt trap. All the necessary treatment can be sought without worrying about finances.
Let us look at the key benefits and features of health insurance plans for family.
Affordability of premiums
Once established that health insurance is necessary, it is crucial to select a favourable plan. You have the option of choosing an individual policy for each member, whereas a family health insurance policy is more affordable. The insurance company can diversify their risk among the different daily members. Thus, all beneficiaries are covered under the same policy with the same coverage.
Cashless treatment facility
Most insurance companies have a list of affiliated hospitals. Through this affiliated list of network hospitals, the policyholder can avail cashless treatment. The insurance company or the third-party administrator directly settles the medical bills with the hospital. All you have to do is present your identity card issued by the insurance company. In case you avail treatment from a hospital not in the network hospital list, the insurance company will reimburse the medical expenses for your treatment.
Family health insurance has a higher sum assured when compared to an individual policy. Also, when more than one member is the beneficiary of such policy, a larger amount is available in case of hospitalisation. Further, this extensive coverage is available at a more affordable premium when compared with other types of policies.
Maternity and newborn coverage
Some family health insurance plans have an optional maternity cover and newborn coverage. There are long waiting periods for maternity coverage. If you are someone who is starting their family, maternity coverage will ensure you do not have to worry about medical facilities at the time of childbirth. Some plans even allow the insured to add their newborns as early as 90 days. Making sure you select suitable additional coverage options, you can ensure all-round financial protection for your present and future family.
Like other health insurance policies, the premiums paid for a family health policy is also eligible for tax benefits. You can claim deduction under section 80D of the Income Tax Act, 1961. The maximum amount of deduction is ₹ 25,000, which is further relaxed to ₹ 50,000 for senior citizens.
Affordable premiums, cashless treatment, maternity coverage and tax benefits are some of the highlight features of a family health insurance policy. A health insurance premium calculator is a nifty tool that can be used to estimate the premiums while comparing different family plans with additional coverage options. Lastly, make sure you read the policy document thoroughly before finalising your purchase.