Why Choose Individual Plans When Family Health Plans Cover Five Generations?

In recent years, there has been an increasing awareness of health and wellness. People have started getting mindful of their lifestyles and making conscious choices for healthier living. Advancements in medicine have helped us increase the life expectancy of people. However, the costs of medical treatments and care have increased too. Hence, people are increasingly opting for health insurance plans to create a financial safety net for medical emergencies. There are different types of medical insurance policies, including individual health plans, family health insurance policies, critical illness insurance like cancer insurance, group health insurance, etc. Today, we will be talking about health insurance plans for family and how they are better than buying multiple individual health plans.

What are Family Medical Insurance Plans?

Every individual, regardless of age, needs a medical insurance policy to manage medical emergencies without experiencing financial stress. If you are living with a family, then every member of the family would need a health insurance plan based on their health conditions. While you can purchase individual health insurance policies for each family member, you also have the option of purchasing a health insurance family cover where one policy offers coverage to all members of your family.

Family Health Insurance Policy Details and Features

●        Cost-efficiency

When you buy individual health insurance plans for each member of your family, you have to pay multiple premiums. Based on the health condition of each family member, the premium can vary. Also, the total amount can be high since every policy will have a specific premium amount. On the other hand, when you opt for a family health insurance policy, all members of your family are covered under it. Hence, you have to pay a single premium. This amount is usually much lower than the cumulative premium of all individual policies.

●        Easy management of policies

If there are multiple health insurance policies in a family, then maintaining records and paperwork can be cumbersome. Also, you will have to keep a record of multiple renewal dates and ensure all hospitalisation and medical bills are maintained separately. With a family health insurance plan, you can manage all the documentation and paperwork with relative ease.

●        Better coverage

With a family health insurance policy, you can get coverage for your spouse, children, and dependent parents. Some insurers also allow you to include your siblings and in-laws in the family plan. Hence, you can have your entire family covered under a single plan. Further, if one member gets sick, the entire sum assured can be used by the ailing member. Hence, each member can get better treatment since there is a higher amount available under the insurance plan.

How to Choose a Family Health Insurance Policy?

Here are some points that you need to keep in mind before buying a family health insurance policy:

  • Determine the sum assured that you would need to offer medical coverage for your entire family.
  • Senior citizens can take up most of the benefits of a family health insurance policy. Hence, for such members, purchasing an individual health insurance policy is advisable.
  • Understand and choose the deductible carefully.
  • Understand and opt for the co-payment clause in health insurance.
  • Understand the terms of the policy, the inclusions, exclusions, and limits before signing the dotted line.

Difference Between Individual and Family Health Insurance Policy

We have already said how a family health insurance plan can provide coverage for multiple members. Here the entire sum assured can be used by one or multiple members. In individual health insurance plans, every member gets a separate policy and a sum assured. If you are buying a policy for yourself and the sum assured is ₹5 Lakh, then only you can use it at the time of hospitalisation and treatment. The entire corpus is shared by all members of family health insurance plans.

Family health insurance plans have many benefits, but the only caveat is the higher premium. The premium for a family health insurance plan is calculated on the age and physical fitness of the oldest policy member. For example, if you are including your grandfather in your family health insurance plan, the premiums will be much higher, considering your grandfather’s age and health condition. And for that amount, you may also get a low sum assured. Having an individual plan for your grandfather, in this scenario, would be a better idea.

Summing Up

As you can see, a family health insurance plan offers many benefits that make it more effective and cost-efficient compared to buying individual health insurance plans for all family members. With the right health insurance plan, you can get coverage for up to five generations in your family.

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