If COVID-19 taught us anything, it would be the significance of having a family health insurance plan. Family health insurance plans provide coverage to the entire family for a single premium, thereby saving you the trouble of paying premiums separately for each member. These plans generally cover parents, spouses, and children, and some might even cover your spouse’s parents.
Significance of a family health insurance plan
With healthcare costs rising and the occurrence of illnesses also projected to increase due to changing lifestyles, the importance of family health insurance has never been more recognized. A family health insurance plan is significant for the following reasons:
- Protects your entire family: Family health insurance covers your entire family under one plan. It could be your parents, your spouses, your children, and in some plans, even your parents-in-law. Comprehensive protection is provided by covering pre- and post-hospitalization costs, in-patient hospitalization, daycare treatments, etc.
- Protection for each individual: Any family member who becomes ill can access the entire sum protected under the family health insurance. Provided that the optimal sum is insured, this ensures that each member has access to greater protection than would have been the case in an individual plan.
- Cost-effective: A family health insurance plan is far more affordable as compared to individual plans for each member. Not only is the premium paid lower, but the amount of protection available to each individual is greater.
- Saves time and effort: Paying individually for each policy can be draining and a time-consuming exercise. If every policy has a different payment schedule, with some paid monthly and some yearly, it would be a far more cumbersome task for you. A family health insurance plan saves you from such hassles, thereby saving you time and effort.
- Tool of tax planning: Section 80D of the Income Tax Act provides a deduction for premiums paid on health insurance plans. You can deduct up to Rs 25,000 in medical insurance premiums for computing taxable income. Premiums paid for oneself, spouse, and dependent children are included in this limit. A further deduction of Rs 25,000 is permitted if the premium for the parents’ insurance is also paid. If your parents are elderly citizens, you can claim a deduction of up to Rs 50,000, bringing your total deduction to Rs 75,000 if you pay their premiums. If the taxpayer is also a senior citizen, the total deduction might go up to Rs1,000,000.
- Easy additions: If you recently had a child or are planning to have one, there is no need for you to buy a new insurance policy for the new member. The new member can simply be added to your existing family health insurance plan. For couples deciding to start a family, plans with maternity benefits are a good option as they cover maternity-related expenses.
To sum up, a family health insurance plan not only protects your entire family but is also affordable, provides greater protection, and saves you from hassles. Especially, if you are married with kids, a family health insurance plan may be the exact protection your family needs. Future pandemics may be unavoidable, and even the rising healthcare costs may be beyond your control, but you can minimize your family’s risk through family health insurance. One family, one cover, is indeed the way to go.
