The responsibilities of a head of the family are not limited to just paying household expenditures, utility bills and food expenses. The obligation of protecting and securing every family member’s physical and mental health also falls on the shoulders of the head of the family.
In today’s times, this burden of responsibility is multiplying due to high medical care cost and adverse lifestyle choices, thereby leading to an increase in lifestyle diseases, both physical and mental. Obtaining a health insurance for your family can help to reduce the financial burden brought on by these complications.
Medical inflation in India is as high as 15% compared to 6-7% inflation across other verticals. The cost of minor and major surgery, medical equipment, medicines and hospital stay has nearly doubled in the past few years. This cost is even higher at private hospitals compared to government hospitals. Needless to say, a medical emergency can severely affect an individual’s finances.
Tragic health emergencies and unaffordable medical expenses are the primary causes of families not having financial stability.
Therefore, health insurance for families is no longer a choice but a plain necessity. The small premium that you pay every month can protect you and your family members during medical emergencies and save their lives without putting a huge dent in your savings.
A family floater health insurance is economical and easier to manage compared to individual policies for each family member. A floater plan passes on the benefits to your spouse and children. Some companies also offer plans that allow the inclusion of parents and parents-in-law.
Since it is of a one-policy-for-all type of insurance, the application process, paper work, and keeping track of premiums is hassle-free, as there is no requirement of maintaining records of four or six separate policies. It also easy to add new family members and secure their health as well.
Better Than Individual Health Insurance
Let’s say, for a family of four, you buy individual medical health insurance policies that offer Rs. 2 lakhs coverage. A year later, either one of you has to undergo a surgical procedure that costs Rs. 3 lakhs. In this case, the policy will only cover Rs. 2 lakhs of the total medical cost and you will have to arrange for the remaining Rs. 1 lakh from some other source.
Whereas, with a family health insurance plan that offers Rs. 5 lakh coverage, the insurance company will pay for the entire surgical expense. You can opt for best medical facilities instead of compromising on the health and safety of your loved ones due to high costs.
Save Tax Money
Besides securing your family’s health, medical insurance also helps to reduce tax liability. Under section 80D of the Income Tax Act, you are eligible to get deductions for medical insurances. For people below 60 years, the available deduction is Rs. 25,000 per annum, and for those above 60 years, it is Rs. 30,000 per annum.