As the Indian government has moved family health insurance under 0% taxation, this time is the best to get a family floater health insurance. But why should you go for a comprehensive plan for your family and not just individual plans instead?
The answer is simple: family plans offer cost-effectiveness, minimal management, added tax benefits, and much more. Let us break down all of the benefits you will get from a family health insurance plan so you can choose what is best for your family.
6 Benefits of a Family Floater Health Insurance Plan
As per the report by the New Indian Express, around 70% of Indian’s do not have adequate health coverage. This leaves families vulnerable to sudden medical expenses. A family floater plan ensures that everyone is protected under a single policy.
Below are 6 major benefits that make it a wise decision to invest in a family health insurance plan:
- Cost-Effectiveness
With family floater health insurance, you pay a single, often lower, premium to cover all insured family members. These plans usually provide coverage for spouse, dependent children, and parents. This can be cost-effective in times of high inflation, as close as 12-14% annually.
- Simplified Management
A single policy means only one set of documents, one premium payment, and one renewal date to track. This significantly reduces administrative hassle in terms of managing and keeping the insurance renewal in check.
- Flexible Coverage
With family floater health insurance, any covered family member can utilise the entire sum insured amount as needed for medical expenses. This flexibility can be very useful, especially for younger families where not everyone is likely to fall ill simultaneously.
- Comprehensive Protection
Family floater health insurance plans typically cover a wide range of medical expenses. These include pre- and post-hospitalisation expenses, in-patient hospitalisation, road ambulance, daily cash allowance, and more.
- Tax Benefits
Premiums paid for a family floater health insurance plan are eligible for tax deductions under Section 80D of the Income Tax Act, 1961. You can deduct up to ₹25,000 annually from the cost of your own, your spouse’s, and your children’s health insurance premiums. If your parents are senior citizens and you include them in the plan, you can deduct an extra ₹50,000. Thus, it allows you to save a lot on taxes.
- Ease of Adding New Members
Family floater health insurance plan offers the flexibility to easily add new family members. If there is a newborn baby or a new spouse in the family, you can easily add them to the existing policy. This benefit is often accessible at the time of plan renewal.
When Should You Go for Family Floater Health Insurance?
There are specific conditions for which, if you qualify, it will be best to get a family health insurance plan. Here is a list of them:
- Young Families with Minimal Health Risks
The most beneficial scenario when you can opt for a family health insurance plan is when you have a young family. A family with minimal health risks and no immediate or major health issues can make the best out of this plan.
- Budget-Conscious and Simplified Management Planning
If you are trying to go for a policy that is budget-friendly, then a family health insurance plan is the one for you. Moreover, with this plan, you also do not have to worry about the added hassle of managing multiple health insurance plans.
- Planning to Start a Family
If you are planning to start a family, then this plan is for you. You can easily add a new spouse or a newborn baby to the existing policy during renewal.
- Individuals without Employer Coverage
For individuals who are self-employed or those who do not get a group health plan from their employers, family health insurance is a good idea. This can provide coverage for healthcare not only for you but also for your entire family.
Bottom Line
A family floater health insurance plan offers an economical solution for securing your entire family’s health needs under a single, easy-to-manage policy. Ultimately, your decision to choose family health insurance should be based on a careful assessment of your family’s specific health needs to ensure adequate protection.
