How Do Family Health Insurance Plans Work?

2 Mins read

Family health insurance plans are undoubtedly a great thing. It promises protection and support to your entire family. If someone from a family experiences some terrible health conditions and seeks urgent medical assistance, such plans assist them a lot in unfortunate situations. One or everyone covered in a health insurance plan may get prompt treatment without worrying about its cost.

However, people often aspire to know everything about their policy plans before purchasing them. If numerous opinions around the plan continue to impact your thought-process, making it hard for you to make the best decision, this article is for you. Here’s how family health insurance plans work and who should consider them.

The Structure of Family Health Insurance

Let’s understand the whole structure of family health insurance through a hypothetical situation.

Suppose Mr. X has purchased a family health insurance plan from Max Bupa, offering them coverage of Rs. 8 lakhs. The plan covers his two kids and a wife as well. After a few months of purchasing an insurance plan, Mr. X contacts dengue and is hospitalized for a few weeks or months.

During the treatment, if half of the insurance amount is used, then the rest of the family will have only Rs. 4 Lakh for their treatment to use in case of emergency. Even though the entire insurance amount is used, the rest of the family members can’t benefit from the policy until it completes its renewal period.

In a nutshell, the sum insured counts the entire family instead of a single one. If the entire sum-insured is used on a family member’s treatment, others won’t be able to claim any amount from the policy.

Do Family Health Insurance Plans Cover All Family Members?

Family health insurance plans cover every person, whoever you wish to add to the policy. Whether you want to include your kids, wife, brother, sister, mom or dad, in most instances, the company’s terms and conditions may recommend you to change your selection.

For instance, most insurance companies only allow adults below 21-25 to be included in the family plan. At the same time, 55+ people are mostly advised to choose separate health insurance plans instead of family plans.

How to Choose the Ideal Family Health Insurance Plans?

Consider these few basic points while selecting the ideal family health insurance plan:-

Sum-insured: Carefully evaluate the sum-insured amount to ensure that a sufficient amount is left for other family members if the maximum of the sum insured is used.

Terms and Conditions: Check every point mentioned on the terms and condition page; you may get the instant answer to your queries.

Risk Factors: Check all the risk factors, especially check the premium amount and coverage if planning to cover the most senior member in the family health insurance plan.

Deductible: Check how the insurer will grant you sum-insured. In most cases, policyholders have to make the payments towards medical treatments as the insurance company pays later, known as the deductible amount.

This is everything you need to know about how a family health insurance plan works. Do your due diligence and shop around before finalizing your purchase.

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