Knowledge Centre

Why is Health Insurance needed for Family?

Accidents can happen anytime and at any place. One needs to take precautions for family and self.  A family health plan is one such precaution and in these times, it is the need of the hour. A typical family of four needs regular health check-ups, treatments for the occasional sickness, and enough financial strength in case of a medical emergency —for all such events, health insurance is the best protection cover for a family.

Importance of Health Insurance

  • Health insurance is a must and without it, one will find it hard or impossible to afford emergency medical expenses.

  • Individuals with illnesses and no health insurance face a higher risk of morbidity as compared to those with health insurance and illnesses.

Stress levels are on the rise and the younger generation is leading an unhealthy lifestyle. Buying a health insurance is the best act they can do to safeguard their health. All of us want our families to stay safe, and buying a family health insurance will give you that peace of mind regarding their health and well-being.

One cannot stress health insurance benefits enough. With the cashless network feature, the insurer settles the medical bills with the hospital while the insured can concentrate on healing. After all, any sudden illness in the family can be very disturbing.

Lifestyle Diseases

We all have a hectic schedule which lacks physical exercise but involves a lot of unhealthy food habits coupled with stress. These issues increase the risk of lifestyle diseases which are life threatening and more expensive to treat than regular infectious diseases. While regular exercise and healthy eating habits are a must—a health insurance will help take care of sudden medical illnesses that may occur to one of the family members.

Health Insurance offers a lot

There is a misconception that health insurance covers big diseases or surgeries but that is incorrect. A good health plan covers:

  • Pre and Post hospitalisation expenses.

  • Offers individual and family floater options.

  • Emergency ambulance needs.

  • Day care procedures.

  • Doctor’s Fees.

  • Operation Theatre Charges.

  • Medical Checkups.

  • Covers in-patient hospitalization charges such as room rent, diagnostic procedures, nursing charges, ICU, etc.

  • Offers Cumulative bonus.

  • Offers AYUSH Benefits (covers treatment charges for Ayurveda, Unani, Sidha, or Homeopathy).

Employer Cover is not enough

It is not wise to be solely dependent on the health insurance provided by your employer. The majority of them come with insufficient coverage and you are eligible for it only till you are employed with the company. It is wise to buy your own personal health insurance even if your company’s health insurance covers you. With a insurance plan for the family, it helps cover every single loved one you wish to protect.

Tax Benefit

Health insurance premium paid by policymakers are eligible for tax deduction. Buying health insurance at an early age can help you to enjoy tax benefits under Section 80D of the Income Tax Act. One can use the saved money to reinvest in a health insurance top up plan or put it into similar productive uses for the benefit of the family members.

Collection of higher bonuses

Health insurance companies in India reward the policyholders with a cumulative bonus on the sum insured or discount on premium, or a combination of both, for not making a claim in the policy year. With each claim free year, the policy holder can accumulate the bonuses. For instance at HDFC ERGO, one starts with 5% and keeps on accumulating the bonus for every claim-free year and can reach up to 50%. One can enjoy such bonus rewards at an old age when there are many illnesses to take care of.

As you read, there are many benefits to buying a health insurance for your family and yourself. Read the policy documents and compare plans online before buying one.

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