A family health insurance is a policy that provides coverage to the whole family under a single plan. It provides an overall coverage against pre and post-hospitalization, medical expenses, ambulance charges, etc., in case of any medical emergency.
Health insurance family plans are beneficial as they cover the sky-high medical expenses so that the treatment of a disease of you or your family members doesn’t put a dent in your savings. To choose the best health insurance plans in India, you have to keep various points in your mind.
The claim settlement process under a family health insurance policy can be divided into two types:
1. Reimbursement Claim: In this type of claim settlement, the insured person has to pay for all the expenses from the pocket. All the bills are kept safe by the policyholder, which is then submitted to the insurance provider’s office with a claim settlement form. The discharge slip is a must while claiming medical coverage. These documents and bills are then verified, and the amount is reimbursed to the policyholder.
2. Cashless Claim: In this type of policy, the policyholder does not have to pay a single rupee on the expenses that occurred for the treatment. All the claims are settled on a cashless basis by the insurer, considering the treatment is taken in one of the network hospitals under the insurer’s chain of healthcare providers.
Advantages of Family Health Insurance Policy:
- All the immediate family members, such as spouse and children, are covered.
- It provides cashless claim settlement for pre and post-hospitalization, medical expenses, etc.
- A family floater plan provides coverage against daycare treatments such as dialysis, cataract, etc.
- Some of the health insurance companies provide the option to add your dependent parent and siblings under the same policy.
- Health insurance family plans provide tax benefits under Section 80D of the Income Tax Act.
- An individual can easily add new members to the same policy plan during renewal.
- It is easy to manage and keep track of family floater plans than individual policy for each member of the family.
Care Insurance, with over 15500 healthcare networks, and an easy cashless claim process, and a CSR of 95.2%, provides one of the best family health insurance plans in India.
Disadvantages of a Family Health Insurance Policy:
- If a member of the family files a single large claim due to any health-related issue. The rest of the family members are left unprotected due to the lesser amount of remaining coverage.
- If multiple smaller claims are made by one or more members of the family, they might claim the entire sum insured by the policy within a short period, making them unprotected for the rest of the policy duration.
- Some health insurance companies have a maximum renewability age, due to which a member of the family who has reached a certain age might be at the risk of losing their health insurance.
Before buying a family health policy, an individual must keep his needs and requirements in mind and consider checking various health insurance family plans from different insurers to avail maximum benefits.