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What are the advantages of family health policy & critical illness cover?

Rohit Sapra Rohit Sapra 14 November 2019

Healthcare expenses incurred due to treatment of any surgery, ailment, hospitalisation, etc. are covered under a health insurance plan. The insurer reimburses the expenses to the policyholder on receiving supportive documents or the policyholder and insured members can avail cashless service offered by the insurance company.

Family Health Policy

It is often observed that people fall prey to financial worries while managing medical expenses for their family members. The increasing medical costs make it tough for an individual to afford quality healthcare. One of the wise ways to deal with such a situation would be buying a family health insurance plan. With the help of one such plan, you can afford quality healthcare without having to worry about expenses.

A Family health insurance policy is also known as a family floater health plan, which covers all the members against various illnesses and diseases. Health insurance for family covers your family for an affordable premium depending on the age of the family members.

Save money: The premium payable against family health insurance plan is much cheaper as compared to the premium payable for individual health plans for each family member. Thus, the policy allows affordable coverage and is lighter on the pockets.

Tax benefits: You can avail tax benefit of up to Rs. 25,000 when you buy a family floater plan. This benefit increase to Rs. 50,000 if you are a senior citizen. Moreover, if you buy a separate policy for your parents, you can avail an additional tax benefit of up to Rs. 25,000 which again increases to Rs. 50,000 if your parents are senior citizens.

Restore exhausted coverage: Many health insurance companies offer a special benefit called the restore benefit, which helps you to reinstate full coverage once exhausted during the policy term. However, this benefit is applicable only for unrelated claims.

Medical cover for the whole family: Family health insurance plans cover all the family members under one policy. You can cover yourself, spouse, dependent children and parents. There are some family plans which allow you to cover your extended family as well. Therefore, a family health insurance policy is a one-stop solution for all your family members health insurance needs.

Easily add a new member: Family floater plans give you the convenience of adding new family members. You can easily avail coverage for a new member from the middle of the policy term, depending on the policy terms and conditions.

Cashless claim settlement: You can avail cashless medical treatment at network hospitals of the insurance company. The cashless treatment is carried out in a nominated hospital of the insurance company.

Rebate on the high sum insured: Many health insurance companies offering health plans for family offer rebate on the higher sum assured. A family health insurance policy also offers no claim bonus, which helps you to increase the sum insured every year in case there is no claim throughout the policy term. It is advisable not to let unforeseen circumstances come in the way of long-cherished dreams of your family and start planning for such events well ahead. Being diagnosed with critical illness means complete disruption of regular life and wiping away of major savings.

You become uncertain of your finances and added to this are worries regarding the future and security of those depending on you. In such circumstances, critical illness insurance provides you and your family financial security for such events that come unannounced. A critical illness can lead to hefty medical expenses leaving you shattered both emotionally and financially. A critical illness insurance cover helps you in paying medical bills and guarantees financial protection. Here are a few more points to consider on why we need critical illness policy.

No depletion of savings: In the absence of a critical illness plan, your hard-earned money will get exhausted as you will be utilising them to deal with a critical illness. You may have to take a loan to meet the expenses which will disturb your financial plans. At such circumstances, a critical illness cover comes as a real saviour, guaranteeing financial safety for getting the patient treated.

Total ailments covered: Poor lifestyle has exposed us to many illnesses such as diabetes, cancer, heart problems etc. Even the youth is suffering from unexpected diseases due to unhealthy lifestyle, poor eating habits, and less physical activities. Hence, it makes sense to avail a policy that provides maximum coverage. The most critical illness insurance plan covers 20-30 major illnesses, including heart attack, major cancers, stroke, paralysis, bypass surgery, terminal illness, etc. Thus, a critical illness cover, along with your health insurance policy, will prove to be very beneficial for the entire family and will help to get the best treatment.

Built-in coverage: Critical illness cover aims to provide financial security against critical illnesses and support to the family. Some insurance companies offer in-built benefits such as child education allowances, complementary health check-ups, personal accident cover, etc. to ensure that your loved ones are not affected in your absence.

Covers hospital and other expenses: The benefit paid against critical illness cover can be used for medical expenses. A critical illness insurance policy may also cover the day to day expenditure of the family members. It ensures that the patient gets quality treatment, and the family does not face financial strain in the hard times.

A critical illness insurance policy is intended to cover your medical expenses if you are diagnosed with any critical illness. The amount claimed under this can be utilised to pay for treatment, children's education, pay a mortgage, etc. If you are not prepared for any unexpected incident and your health insurance policy and the coverage provided by your employer is not enough to pay for the high medical expenses, then a critical illness insurance cover will take care of your needs.

Unhealthy eating habits, coupled with a hectic lifestyle, is causing many individuals to fall sick and avail medical attention. Added to this is the ever-increasing healthcare costs. It becomes impossible for the common man to bear financial distress in a medical emergency. Therefore, a health insurance policy is the best way to make sure that a sizeable amount of medical expenses is taken care of.

Recommended Link:Factors Affecting Premium of Critical Illness Insurance Policy

Rohit Sapra
Written by Rohit Sapra
Rohit Sapra, a licentiate, and currently an SME, is a seasoned insurance professional with previous work experience from Kotak and Birla Sun Life Insurance.