How to Choose the Best Family Health Insurance in India?
Health insurance has become necessary for everyone as healthcare expenses are soaring and lifestyle diseases are on the rise. Medical emergencies can range from a quick illness to an injury that occurs suddenly, and it not only affects your health but also empties your pocket. For such reasons, one should select the right health insurance policy for your family.
Let us discuss what factors to take into account when choosing the best family health insurance policy for your family in India.
Why Do You Need Family Health Insurance?
Healthcare costs are on the rise, with medical inflation of about 15% every year. Therefore, medical therapy and hospitalisation are getting increasingly costly for everyone. For example, a day in a government hospital in a Tier 1 Indian city would cost you more than 
4,000, while in a private hospital, the same stay would cost more than 30,000. These expenses can very easily exhaust your budget, drawing you further away from achieving your financial targets.
A family health insurance package can help control these financial burdens by covering hospitalisation expenses and allowing the family to be financially strong in case of emergencies. Now, let us explore the factors that you will need to consider to make the right choice when buying a health insurance plan for your family.
Steps to Choose the Best Health Insurance Plan for Your Loved Ones
Follow these steps to choose the health insurance plan for your family, rather than purchasing whatever you come across first.
Step 1: Decide on the Right Type of Policy
There are several types of health insurance and every one of them is designed to serve the specific needs of the insured. It is essential to understand the types to make an informed decision and they are discussed below:
- Family Floater Plans
These plans enrol multiple members from one family as a single entity with a shared sum insured. This is advantageous for the families because it broadens your coverage. Moreover, each member is allowed to claim the whole amount insured individually, by paying only one premium.
- Individual Health Plans
These Single Person Health plans cover one individual with a specified amount of sum insured. If you desire a plan that will handle just you or one member of the family, this might be an option for you.
- Senior Citizen Plans
Elderly citizens aged 60 years and above, can avail of the senior citizen plan that offers coverage with the inclusion of certain benefits like pre-existing conditions and outpatient department (OPD) treatment. This type of program is suitable for you if you are willing to provide coverage for your parents or grandparents.
- Critical Illness Plans
These insurances focus on the critical treatments for cancer, heart attack, stroke, etc. If a person has a variety of diseases covered by the plan, the plan pays out a lump sum. This approach can even be an integral part of an overall family floater plan.
- Top-Up and Super Top-Up Options
These extra plans help to cover the extra costs not covered by insurance up to a specific deductible limit. Many top-up plans are on a per-claim basis whereas super top-up plans are on an aggregate basis.
Step 2: Opt for an Adequate Sum Insured
When choosing the insurance plan, you should take into account the number of family members you have and their possible medical costs. It will offer more security, but on the other hand, it will inevitably involve higher premiums. An additional top-up or super top-up plan will provide you with increased coverage for affordable prices.
Step 3: Look for Comprehensive Coverage Benefits
Make sure that the health insurance plan you choose covers any medical expenses ranging from hospitalisation, day-care, ambulance services, and other emergency services. You should opt for a plan that includes maternity allowance in case you wish to start a family. Always try to choose plans that offer extra benefits like no-claim bonuses besides free health check-ups and coverage for alternative treatments like Ayurveda.
Step 4: Understand Policy Exclusions
Following the analysis of coverage and premiums, it is necessary to scrutinise the exclusion list of the policy. Exclusions are particular scenarios or conditions where the insurance coverage does not cover them. Each health plan has its list of what it doesn't cover with exclusions detailing them. By reviewing the exclusion list, you get a sense of what is covered and what is not covered by the policy.
Final Thoughts
It is crucial that you select the best health insurance plan in India for your family. Make sure to carefully read and compare policies before you purchase; otherwise, you might end up paying more than the face value. Most importantly a good health insurance plan should guarantee peace of mind and financial stability when required.
