Family Health Insurance Plans Everything You Want to Know

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11 Jul 2023

Health Insurance Plans for Family: At Kotak General Insurance, learn what a family health insurance plan is & how buying it can benefit your family.

One of the primary purposes of buying a health insurance policy is to ensure the financial security of the family against the rising medical expenses. Today, many insurance companies offer a variety of family health insurance plans with a wide range of benefits like quick claim settlement, maternity cover, wider network of hospitals, etc.

What is family health insurance?

As the name suggests, family health insurance plans provide coverage to all family members against the medical expenses under a single policy. Under the family health plan, all the family members share the fixed sum insured. This means if you have purchased a health insurance policy that covers four people and has a sum insured ofRs.20 lakhs, anyone can utilise this amount to cover the treatment cost up to a maximum limit ofRs.20 lakhs.

Benefits Of Buying Family Health Insurance Policy

Many people prefer buying a family floater health insurance policy rather than buying an individual plan for each family member. Let us look at the major benefits of buying such family insurance plans.

In the event of any medical emergency in the family, all the insured members can avail best quality medical care without worrying about the cost. Thus, you can be stress-free about medical expenses in the family.

Many health insurance companies allow family health insurance buyers to include both parents and in-laws under the same policy. Although you may have to pay an additional premium for covering them, it would be worth it. You can breathe a sigh of relief knowing that you have secured the health of the old-aged family members.

As family insurance plans do not require you to pay individual premiums for all the family members, you can cover your spouse, parents and children under a single policy at an affordable premium. However, it is advisable that you purchase a different plan for your old-aged parents considering they may have age-related health issues. Generally, the insurers determine the policy premium based on the age of the oldest insured member.

Another significant benefit of the health insurance plan is that you can easily add new family members by paying an additional premium. This helps you avoid the hassles of buying a fresh policy and go through the hassles of submitting documents, filling a form, etc. Also, every time you add a new family member, you have the flexibility to increase the sum insured.

You can purchase additional coverage options known as add-ons or riders with your family health insurance policy. This will help you extend the coverage of your existing plan and get protection against specific risks that may not be covered under the regular policy. So, you can assess the healthcare needs of your family member and purchase an add-on accordingly.

For example, if any of your family members work in a high-risk profession, you can consider buying an accidental death benefit rider. Similarly, if your spouse is a soon-to-be mother, you can buy a maternity cover.

While buying add-ons, you must read the policy terms and conditions carefully and know about the waiting period, sub-limits, etc., and make an informed buying decision.

Apart from securing your finances against medical emergencies, health insurance is also an excellent tax-saving financial instrument. The premium you pay for the policy is eligible for tax deduction up toRs.25,000 in a financial year under Section 80D of the Indian Income Tax Act. If you are paying the premium for your parents, you can get an additional deduction of up toRs.25,000.

Create a Safety Financial Net with Family Health Insurance

Since there are plenty of health insurance plans available in the market, you must exercise caution while buying a family health insurance plan. The plan you choose must suit the medical needs of each of your family members and more importantly, it should fit within your budget.

At Kotak General Insurance, we offer a wide range of healthcare plans like Kotak Health Care that provides comprehensive coverage to ensure that you and your family members are always well-protected.


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Team Kotak GIC

The content of this blog has been created and carefully reviewed by the esteemed team at Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist users in making informed decisions when purchasing or renewing insurance policies for their cars, bikes, and health. Our expertly curated information aims to empower our readers with the knowledge they need to protect their valuable assets and financial interests.