Best Affordable Family Health Insurance Plans

A person feels most secure and happy when he/she is with the family. It instils values in an individual and helps the person to develop a character. Over the years, a person develops a strong emotional bond with his/her family members. So, it is natural that the person will be concerned about the health of the other members of the family. Due to this reason many people buy family floater plans instead of individual health policies.

Family floater is a type of policy that provides cover for the entire family in case of any medical emergency. Once a person opts for this policy then, he/she will not have to worry about medical bills in case of sudden illnesses.

Family floater versus individual policy

• If a person buys an individual health insurance policy for each family member then such a plan will be more expensive. Moreover, the individual will also have to ensure that all the premiums are paid in time. Family floater plan on the other hand is more affordable and premium needs to be paid only once.
• This kind of policy terminates when the eldest family member reaches the maximum age allowed under the term of the plan. Individual policies can be renewed for the entire lifespan of the insured.

Key considerations in choosing an affordable family health insurance policy:

• Compare: One must always compare the prices and features of the various policies available in the market.
• Maximum age for renewability: In most cases, the maximum age for renewability ranges from 65 to 75 years.
• Sub-limits: It is advisable not to get carried away by the hefty sum insured under the insurance plan. One must always check the sub-limits before selecting a particular policy. The total sum insured may seem very substantial but there could be sub-limits on different categories like medicines, hospitalization expenses and so on.
• Term of the policy: Generally these kind of plans were offered on an annual basis. There are many health insurance providers that offer a two year policy term.
• Reinstatement benefit: In many cases, the individual may lose out if the sum insured is claimed before the policy term. Under the reinstatement feature the sum insured can be refilled if it is used up before the end of the policy term.
• Other features: A family floater plan could offer various other value added services or features like free health check-ups, discount in pharmacies and many others.
  
  

Benefits

The key advantages of taking up a family floater plan are mentioned below:

• By taking up a family health insurance plan the individual can enjoy tax deduction under section 80D of the Income Tax Act, 1961.
• Immediate family members like spouse or new-borns can be easily made a part of the policy.

Downside

Like all good things, this too has a few drawbacks which are listed below:

• With every claim the insurance policy cover gets thinned out. So, this subsequently increases the financial burden.
• Most policies in the market provide a cover for the individual, spouse and children; parents and siblings are often excluded.

Author Bio: The author of this article takes a keen interest in the insurance sector. She is currently researching on affordable family health insurance policies in India.