What is Health Insurance?
A Health insurance policy is a contract between the insurance company and the policyholder wherein the insurance company offers coverage for the medical and surgical expenses in the case of sudden hospitalization due to any illness by providing cashless or reimbursement facility. Health Insurance is specifically purchased for the security of an individual’s or family member’s health against any unforeseen health issues like sickness, illness or diseases. The insurance company charges a premium against all these protection.
A family health insurance plan generally covers you, your spouse along with up to 4 kids. Some insurance company allows your parents also and some allow your in-laws even in your health policy. Family health insurance includes health benefits such as Daycare Procedures, Accidental Hospitalization, Critical Illness Hospitalization, Psychiatric Support, Advance Cash Benefit, and Annual Health Checkups amongst others.
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Why is Health Insurance Important?
Any type of insurance is always better for us because we don’t know about our future. Any circumstances can come at any time. Insurance could be any like Car Insurance, Life Insurance, Personal Accident Insurance, etc. In my opinion, health insurance is better than life insurance because “Health is Wealth”.
There are plenty of reasons to buy health insurance. More than 160 million Indians are breathing air 10x over WHO safe limit; Indian households are collectively spending more than 3 Lakhs Crore rupees on just medicines; the WHO states that India will see 1.2 million new cancer cases this year, with more than 50% in women; medical costs are surging at the rate of 15% to 20% every year in India, life expectancy rate has risen, etc. The income of Indian people is not increasing as compare to medical expenses. Many people face financial strains or even a lack of finances when it comes to funding their treatment. This results in loans, mortgages and sale of assets just to keep the person alive. This is where a health insurance plan could be a real lifesaver as the cost of hospitalization, surgeries, treatments, and medicines and so on, have risen. At this time of unpredictability, health insurance provides the much needed financial stability to an individual or family.
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Features and Benefits of Health Insurance Plan for Family:
- Family Health Insurance Plan covers you, your spouse, up to 4 kids, your parents and in fact, many insurances companies also allow parent in-laws. You need to pay a single premium which saves your money.
- You can avail cashless treatments also which means no need to pay the hospital from your pocket. A reimbursement option is also available. In this option, an insurance company will reimburse all your expenses once you claimed it.
- Family Health Insurance Plan covers Pre- as well as Post-Hospitalization Expenses for a period of 60 days before and after an insured individual is hospitalized.
- Family Health Insurance Plan covers the costs incurred on using an ambulance to transport you from your home to the hospital or vice-versa.
- Most health insurance policies offer free health check-ups.
- If you do not make any claims over the course of an entire policy year, you will be rewarded with No Claim Bonus (NCB). It increases your policy’s sum assured value.
- Family Health Insurance Plan offers options for the policy term. You can opt for 1, 2 or 3 years as the policy term.
- Family Health Insurance Plan covers your hospital room rent to a significant extent.
- You will get a tax rebate also.
- You can add your new family member easily in the same family floater plan.
So if you calculate, everything is in favor of the policyholder. They can live their life without tension. The financial burden will not fall on the family of the insured person.
What is a Family Health Insurance Floater Plan?
A Family Floater Plan covers all the family members (self, spouse, dependent parents, dependent children, brothers, and sisters) under a single policy by paying one premium amount. The sum insured is fixed and get exhausted as and when any member avails medical services and makes a claim. Any individual above 3 months of age can be covered under the policy provided 1 adult is also covered under the same policy.
How Does A Floater Cover Work?
In Floater Plan, the sum insured is shared by all the included family members under one premium payment. Let’s understand this with an example. Mr. ABC had a family floater plan (self, wife & 2 kids) and the sum assured value is ₹ 4 Lakh and the premium amount is ₹ 5000. Now if the need arises, any one member can use this entire amount of ₹ 4 Lakhs in case of a medical emergency or all four members can use whatever amounts they require as and when the need arises, staying within the boundary of the sum insured, i.e. ₹ 4 Lakhs.
If all these four members took an individual health insurance policy of ₹ 4 Lakh each, the total premium would surely be more than the floater plan.