Owing to the rising hospitalization and medicinal bills, the importance of family health insurance has increased significantly. Medical emergencies are unexpected and unforeseen and may leave you devastated emotionally as well as financially. Though no one can compensate for the emotional loss but financial damages caused to your savings due to such emergencies can be covered under health insurance policies. If you spend a major portion of your income on medical expense of your family members, you must buy a family health insurance because it is cheaper than the individual health policies and will cover your entire family under one policy.
Let’s say if an average salaried person with four members in his family owns an individual health insurance policy of two lakhs. Now if his son falls ill and the overall expenditure caused on his treatment is 3 lakhs. The two lakhs of the total medical bill will be covered by the insurer whilst the remaining one lakh will need to be paid by the insured. However, this is not the case with the family health insurance. In the similar scenario, if the insurer has the family health insurance policy for 4 lakhs, the entire medical expense would be borne by the insurer as each member of the family is eligible to obtain the full amount insured under their policy.
Typically, a family health insurance policy covers four members of a family, excluding parents. If you wish to cover your parents too in the policy, you will have to take an additional rider by paying extra premiums. Also, there are many general insurance companies offering family floater plans which cover your entire family including parents under one policy. Such comprehensive health insurance policies for families are a real boon for those looking to cover their large families under one policy without needing to purchase any other plan.
To buy a family health insurance, the major factor that you must look into is the amount that you need to pay each month as part of the premium. This is a point of major consideration and must be dealt with carefully. Also, it is advised to choose the policy that you can afford to pay for. The expensive policy will seem good initially but will make a hole in your pocket in the long run. Also, avoid paying for the services that you would never need.
Another important thing that needs to be considered is the deductibles. It is the fraction of the claim that you need to pay before your insurer makes any payment. Typically, the deductibles vary greatly according to the policy. The higher the deductibles the lower the premiums would be. However, it is advised to choose deductibles keeping in mind your financial status.
Many insurance companies offer policies which include deductibles for each person but later waive these over other members of the family once the deductibles have been met on at least two members of the family. Since the norms of the insurance policies differ widely from one company to other, it is prudent to understand the policy before purchasing it. Also, see what all it covers for and what it does not. Check the loopholes (if any) in the policy. Ask the insurer about the claim procedures and the common conditions when the claim is more likely to be rejected before making the final purchase.