In this fast-paced world, where people are often occupied with work, health sometimes takes a lower priority, resulting in declining health conditions. In such scenarios, the significance of a mediclaim policy cannot be overstated. When it comes to family, there are almost three to four generations included and the healthcare needs of each family member may vary. Given the uncertainty of life and medical inflation, a mediclaim policy for families can offer practical coverage. To discover how, continue reading.
What is a Medical Insurance Policy For Family?
A mediclaim insurance in India offers a single-policy approach and provides coverage to the entire family, including children, spouse, and parents, under a single sum insured. It includes coverage for a range of medical treatments, hospitalisation costs, and surgeries for all members covered under the mediclaim policy.
Let’s help build a clearer understanding with the help of an example.
Suppose the sum insured amount is ₹500,000 and your one family member uses ₹200,000 lakhs for hospitalisation. In that case, the remaining ₹300,000 can still be used by any other family member.
Benefits of Family Health Insurance Plans
The mediclaim policy for family offers additional benefits along with financial security. Some of them are listed below:
Comprehensive Coverage
{{/usCountry}}Comprehensive Coverage
{{/usCountry}}One of the advantages of mediclaim insurance in India is the coverage it offers to all family members under a single plan. This eliminates the need to purchase individual health insurance plans for each family member, saving both time and effort.
The medical insurance policy for family provides coverage for the pre-and post-hospitalisation, diagnostic tests, daycare treatments, domiciliary treatments, prescription medications, surgeries, and more.
Affordable Premiums
A mediclaim policy is generally a more cost-effective option than buying individual policies for each family member. This feature allows families to opt for a suitable health plan without compromising on coverage. For those evaluating mediclaim insurance in India, family policies help balance cost with coverage needs.
Increased Sum Insured
Since the family health insurance plans offer broad coverage, the insurance company enables a pooled sum insured amount to be shared among multiple family members. Whereas, in individual health insurance plans, the insurer offers a separate sum insured, to be used only by the insurer. In family health plans, the sum insured can be used by any of the family members covered under the plan. This flexibility enables timely access to treatment without concerns about payments during medical emergencies.
Tax Benefits
In India, under Section 80D of the Income Tax Act, 1961, tax deductions can be claimed on premiums paid for health insurance and expenses incurred on preventive health check-ups. Below are the key details and conditions for claiming these deductions:
For Yourself, Spouse, and Dependent Children: A deduction of up to ₹25,000 per financial year for premiums paid towards health insurance policies covering self, spouse, and dependent children. This limit also includes expenses on preventive health check-ups, capped at ₹5,000 within the ₹25,000 limit.
For Parents: An additional deduction of up to ₹25,000 is available for premiums paid for health insurance policies covering parents (below 60 years of age). If parents are senior citizens (aged 60 years or above), this limit increases to ₹50,000 per financial year. The preventive health check-up sub-limit of ₹5,000 also applies within these respective limits.
Maximum Deduction:
If neither the individual nor the parents are senior citizens, the total deduction can be up to ₹50,000 ( ₹25,000 for self, spouse, and children + ₹25,000 for parents).
If parents are senior citizens, the total deduction can go up to ₹75,000 ( ₹25,000 for self, spouse, and children + ₹50,000 for senior citizen parents).
Cashless Facilities
Insurance companies collaborate with a network of hospitals, providing access to quality healthcare services. Seeking treatment at a network hospital can reduce out-of-pocket costs, and enable access to treatments without upfront payments. Under cashless facilities, the insurance company settles the bills with the hospital, helping simplify the process.
Maternity Benefits and Newborn Coverage
Some mediclaim policies for families also cover maternity-related expenses and newborn care. This can be relevant for families planning to expand. Coverage may include prenatal and postnatal care, delivery expenses, medications, complications during the pregnancy, and more.
Preventive Healthcare
Family health insurance policies may offer preventive care benefits, including health check-ups, screenings, and vaccinations. Such preventive care services support early detection of health conditions and prevent them from becoming severe, leading to better treatment outcomes.
Wrapping up
Insurance can safeguard families from unexpected medical expenses by offering financial support during medical emergencies. This helps ensure that all members receive access to healthcare without worrying about high medical bills. Whether it’s maternity benefits, cashless hospitalisation, or tax benefits, family health plans come with a wide range of advantages.
Those evaluating a medical insurance policy for family may explore Niva Bupa’s family health plans, which offer customisable and comprehensive coverage designed to address different family requirements. These plans focus on coverage flexibility while considering varying healthcare needs.
Note to the Reader: This article is part of Hindustan Times' promotional consumer connect initiative and is independently created by the brand. Hindustan Times assumes no editorial responsibility for the content.
The content may be for information and awareness purposes and does not constitute any financial advice.