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HomeFinance BlogsInsuranceImportance of Investing in Family Health Insurance Policies

Importance of Investing in Family Health Insurance Policies

Health risks and unforeseen medical emergencies are unpredictable and hence a part of our lives. Some medical events do not alert you beforehand for you to prepare for them financially, which is where a health insurance policy comes in handy.

Medical emergencies can strike anyone at any time, irrespective of who you are. It is a general misunderstanding that older people are more inclined to fall ill, however with the increasingly sedentary lifestyle, bad eating habits and work-related stress, the youngsters are equally vulnerable to illnesses.

In such times, it is of crucial importance that you have an adequate health insurance policy in place to cover your family, including parents, spouse, and children.

A health insurance policy acts as a cover that provides you with a much-needed financial backup at the time of medical emergencies and offers protective coverage that pays for medical expenses incurred by the insured. When you make a claim, the health insurance provider reimburses you for expenses incurred from illness, injury etc., or pays the care provider directly. There are several types of health insurance plans, such as individual health insurance, family floater health insurance, critical illness insurance, etc. Buying health insurance can be an essential part of your financial planning.

Why is it important to buy a family health plan?

Below are the importance to buy a family health plan.

For Parents

Parents always protect their children and do a lot for them, when they become old it becomes the duty of the children to look after them, and the most crucial thing a child can do for their parents is to cover them with a health insurance policy. Studies suggest that about 70-80% of senior citizens in India suffer from some kind of lifestyle diseases such as diabetes, heart condition or blood pressure. Hence, parents are at a high risk of falling ill and facing a medical emergency.

Besides, old age can significantly impact the immune system and raise the risk of illness in parents. Therefore, buying health insurance cover for your parents is necessary to cover the treatment expenses if they fall ill. When you buy health insurance for your parents the treatment expense is paid by the insurance company. Additionally, you can get tax deductions for the premium paid towards the health insurance policy for your parents. 

For Spouse

If you plan to start a family, it is very essential that you buy a health insurance policy for your spouse and insure them against medical emergencies. Your partner needs as much medical attention as you do and when you have financial protection in terms of health insurance, it gives you peace of mind knowing that you’ll be able to handle an unexpected medical emergency without losing your savings.

For children

According to statistics, infants and teenagers are more prone to illnesses or meeting with an accident. The underdeveloped immune system in children and hormonal changes can result in their vulnerability towards certain illnesses and medical emergencies. That means occasional fractures and illnesses that require hospitalisation. Having a comprehensive family health insurance plan that covers the kids can help you reduce your financial liability.

What are the Benefits of a Family Insurance Plan?

Here are the some benefits of family insurance plan:

  • Comprehensive cover for the entire family

Health insurance policies such as Family floater health insurance can cover all the family members under one plan. It can cover you, your spouse, dependent children, dependent parents, and even dependent parents-in-law. Some plans even allow you to cover your extended family. That is why comprehensive family health insurance plans are a one-stop medical insurance solution for all the members of your family.

  • High coverage for each insured member

One of the key benefits of a family health insurance plan is that the sum insured under the family floater policy can be used entirely by any member in case they fall ill. With an optimal sum insured, each family member gets complete access to the sum insured to avail a high coverage in medical emergencies.

  • Affordable premiums

With the increase in lifestyle diseases and equally rising healthcare costs, buying adequate health insurance has become more of a necessity than a choice. While the rate of premium payable for a family health plan is much cheaper compared to the premium payable for individual health insurance plans for each family member, it has become affordable to cover your loved ones in case of a medical emergency.

  • Option of maternity coverage

If you are a couple who is planning to start a family in the near future, buying a family health plan that offers maternity coverage can be a good decision. Under such plans, many maternity-related expenses including hospitalization, childbirth, and other medical expenses are covered.

  • Adding new members can be easy

Many family floater health insurance plans allow you the flexibility of adding new family members to the existing plan. In case there is a new member in your family (childbirth), you can easily avail health insurance coverage for the child from the middle of the policy term, depending upon the terms and conditions of the policy. All you have to do is make a request to your insurer, pay an additional premium and the child would be covered under the policy without any hassles.

  • Tax benefits

 Last but not least, and maybe one of the most crucial benefits of a family floater health insurance plan is that you get tax benefits on the premiums paid towards the policy. Health insurance is effective in covering medical expenses in future while offering financial relief in the present. You can avail of significant tax deductions under Section 80D of the Income Tax Act on the premium paid towards a health insurance policy. You can claim deductions for policies taken for yourself, your spouse, your children, or your parents. This helps you reduce your overall tax liability.

The above points can summarise the importance of family health insurance plans, an ideal solution for all the health insurance needs of your family. So, understand the requirements of your family and invest in a family health plan to secure their future.

For more information, visit the Kotak General Insurance website.

Marketvein Staff
Marketvein Staff
Born libra, likes to lead from the front. Digital Marketing & Technology is his strength. He has pursued engineering. Travelling to new places & writing is his idea of fun. In his free time (if he gets some that is), he is seen donning the chef's hat at home.
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