Like any Health Insurance Plan, Health Insurance Plans for Family is insurance cover for more than one family member. The sum assured for such insurance plans are generally fixed and a single premium is to be paid annually. Such Insurance policies provide coverage (subject to policy terms) against medical expenses for treatment of the ailment, while being hospitalized or under domiciliary hospitalization, or against medical expenses incurred in case of hospitalization due to accident. The coverage is for two or more than two family members simultaneously.
We had also talked about who can be covered by Health Insurance Plans for Family? The family Health Insurance plan is for family, as the name suggests, generally covers a family. It is important to understand as to who is considered as members of your family. Generally, the person who is the proposer, i.e. you, in case you are the proposer; along with your spouse and up to 4 children is to be considered as a family. Some insurance companies also allow your parents and/ or your in-laws (as your extended family members), to be included against an additional premium.
Now let us highlight the usefulness of such insurance policy. There are very valid reasons for taking a cover under the family health insurance, some of which are listed and discussed below:
- There is no need to maintain and track renewal dates of individual policies for each member. A family floater is a single policy covering the family members including extended family members has a single renewal date.
- Pay a single premium covering two or more than two family members, instead of paying higher premium against individual policies.
- Thus, a higher Sum Assured as against individual health insurance can be opted for.
- The plan permits inclusions of new family members in case of addition of members due to birth or marriage and/or exclusions of members from the policy, due to demise or divorce, or any other reason.
- For every claim-free year during the policy in operation, you will be entitled to a no claim bonus by way of increase in sum assured up to 10% subject to a maximum of 50%.3
- Apart from covering the immediate family members it also covers parents, in-laws and extended family member.
With the rising cost of medical treatment on being admitted to a reasonable standard hospital, the concept of family health insurance coverage is slowly and steadily gaining importance among many families.