4 factors to remember before choosing a family health insurance plan

In this fast-paced life, there is a tremendous rise in illnesses and medical costs. It is essential to protect yourself and loved ones with appropriate health insurance. These policies are a blessing in disguise. You pay premiums for the coverage you opt for. It is an agreement between the insurance provider and the policyholder.

The policyholders need to decide between the two options –

They could opt for cashless treatment in network hospitals for injuries caused due to accidents or treating illnesses.

The other option is receiving reimbursement for medical expenditures.

There are different types of health insurance plans available in the market. The primary ones being –

Indemnity plans: It typically reimburses hospital expenses related to healthcare treatment. These could either be cashless treatment or reimbursement. Under these there are sub-types such as Mediclaim, family floater, individual plans, and so forth.

Critical illness plans: It acts as a shield for the policyholders from the massive treatment expenses incurred owing to critical diseases such as kidney transplant, heart attack, cancer, etc. As per the plan, the entire money gets paid to the customer upon diagnosis of the illness.

The popular health plan amongst these is the family floater plan. Such policies are flexible that allows sharing the sum insured between the family members. They are best suited for young families because the cost of these plans gets decided based on the age of the eldest family member. So, if the eldest member is 52 years old, there are chances that the premiums could increase. It is the best insurance plan to protect your loved ones.

Benefits of family plans: Family floater plans are comprehensive by nature. All age groups fit under the program. The benefits of applying for one are –

Trouble-free: The family floater health insurance plan, relieves you from paying different premiums for every policy for each member.

Discounts: It is the facile way of sage-guarding the family members as it allows you to avail of discounts and offers time to time.

Convenient: In the Mediclaim, you can members whenever you need. Make sure you choose a higher sum assured if you are adding your parents to the scheme. This way you secure both sides of the family, i.e. your in-laws and your parents. The best part about the policy is that even if one of the senior members dies, the other family people can continue with the policy.

Tax benefits: Apart from cash, premium payment done in any other form gets exempted from tax under Section 80D of the Income Tax Act.

Characteristics: Considering there is a waiting period, you can also avail of maternity and new-born cover. Precisely why they are perfect for young families.

Factors to remember before choosing family floater plans:

Basic coverage: At the time of comparing the plans, make sure to note down the basic coverage each offer. Also, you need to consider coverage for pre-existing illnesses, lifestyle, inclusions and exclusions, between 30 days to 48 months. Any standard medical insurance offers day-care costs, hospitalisation and ambulance reimbursement, etc.

Renewal age: The renewal age for the insurance policy is up to 60 to 65 years. Some insurance companies also offer long-term policies. Make sure to select the one that shields you when you need it the most.

Claim settlement: Although every insurance provider offers cashless treatment, it is essential to understand the claim settlement process. Almost every company provides cashless treatment at network hospitals. Yet, it is imperative to check the credibility of these hospitals.

Increase sum assured: Since the cost of everything around is increasing, there are insurance companies who are providing facilities to increase the sum assured.

 Having NCB can help you avail discounts on premiums at the time of renewal.