A family medical insurance policy is one that covers more than one member of a family for a fixed sum with one premium payable. Such a policy generally covers your spouse and up to four children. Some insurance companies even allow parents to be included in the same policy. The primary benefit from this type of policy is that you do not have to maintain several individual policies with various restrictions and clauses.
A family health insurance policy covers all members subject to terms and conditions. Inclusion of aged parents in the policy substantially raises the premium otherwise payable for only spouse and children but in the long run it is definitely advantageous as the aged need more medical care and attention and are more likely to be suffering from various ailments.
There are two types of family medical insurance.
Medical Insurance – A medical insurance policy typically reimburses the cost of hospitalization and other health care treatments. It is possible to opt for cashless treatments but that is only at designated hospitals as decided by the service provider. In case other hospitals are chosen, the full cost of treatment has to be borne by the patient and later reimbursements can be claimed as per eligible limits. In recent times, Bariatric treatments are also covered by health insurance as it is not considered to be a cosmetic procedure but treatment of an illness. However, skin rejuvenation and similar beauty care procedures on laser and IPL machines remain outside the purview of health insurance.
Critical illness insurance – This type of policy covers patients from certain critical illnesses such as heart attacks, kidney ailments, organ failures and others as listed out by insurance companies. The insurance companies, subject to their stipulation pay out a lump sum for treatment of the diagnosed illness. However, one such critical illness policy cannot be bought for the entire family.
Some of the advantages of a family health plan are –
Easily monitored – A single policy covers all family members and saves the hassle of keeping track of different policies with separate clauses and stipulations. Further, one single premium is payable and that saves the trouble of monitoring various premium dates.
Avail discounts – For one single family health insurance policy, you can avail discounts and pay a reduced premium when compared to the total of multiple policies for different family members.
Adding new members – It is possible to add new members to a family medical insurance policy whenever the need arises. Further, in the event of demise of a family member, the others can continue to enjoy the full benefits of the policy.
Tax benefits – This is quite important as medical insurance premium paid through any other mode but cash is eligible for claiming tax deductions subject to limits as decided by the Government from time to time.
Before opting for a family medical insurance policy, it is advisable that you carry out a thorough online research for the best deals. Different insurance companies have separate clauses regarding hospitalization and pre-existing diseases. Many do cover pregnancies with a waiting period stipulation. For family floater policy you can pick and choose definite benefits that you are looking for.
A family medical insurance policy is a guarantee of proper treatment for you and your loved ones.