The health insurance market is a saturated industry with key players in the game. These companies offer extensive health packages which go up to ₹1 crore. But affording a ₹1 crore insurance for the middle class is next to impossible.
So which medical insurance plan should you choose for your family of four? In this blog, let’s answer this question and look at things to see before buying a policy.
Medical Insurance Coverage Option for a Family of Four
-
10 Lakh Health Insurance
Experts usually recommend a ₹10 lakh health insurance policy for families. These plans offer extensive coverage for a family of four, ensuring that you get peace of mind during emergencies. Moreover, these plans are affordable and provide your family with several discounts if you buy a long-term plan.
For example, a family consisting of a 35-year-old and 36 36-year-old couple, with 2 kids aged 4 and 1, needs to pay ₹21,711 (approximately) annually to get a ₹10 lakh coverage.
-
15 Lakh Health Insurance
A ₹15 lakh health insurance is ideal for families with a history of health problems. If you reside in a metro city such as Mumbai or Hyderabad, this plan provides enough coverage for the high medical costs in these areas. If you opt for online services, you can get an additional discount as well, making it easier on your budget.
For example, by paying ₹25,518 (approximately) annually, you will get pre-hospitalisation, OPD, free preventive health checkups and other benefits. Not only will it give your family peace of mind, but it will also be a financially wise decision.
-
20 Lakh Health Insurance
Instead of buying individual health insurance plans for every member of your family, you should invest in a ₹20 lakh insurance. It is especially necessary if your family consists of your parents. However, since older people are more likely to develop medical issues, your premiums will be higher.
For example, if you have parents over 60, your family’s health insurance would cost you ₹71,298 (approximately) annually to get a ₹20 lakh coverage. You can also add top-ups, such as a major illness accident multiplier and loss of income.
What Factors to Consider Before Buying Medical Insurance?
Just knowing how much health insurance is enough for your family is not enough. You have to consider certain factors to ensure you get the right coverage without breaking your bank:
-
Identify Your Health Status
The first and foremost factor is health status. Buying health insurance while your family is young is necessary, as your premiums would be much lower. But even if it is not, you should still evaluate your health needs.
If any member of your family needs frequent medical support, then consider getting ₹15 lakh medical insurance coverage. It will cover their bills as well as take care of other members’ needs without exhausting coverage.
-
Set a Budget
Your next step is to set a budget for your health insurance. You should only buy policies which you can afford without affecting your daily finances. A good way to ensure that is to only go for add-ons you genuinely require.
It will help you save money on premiums by not buying unnecessary add-ons which you don’t need. For example, if you have a yearly budget of ₹25,000, going for a ₹10 lakh medical insurance is ideal.
-
Compare Plans and Benefits
Once you know your health requirements and budget, the next step is to compare plans. Health insurance premium calculators can help in this regard. It customises your health plan according to your needs and lets you see the premium amount and benefits.
Always choose a plan with fewer deductibles and no co-payment options. It will allow you to have complete financial protection in case of an emergency and will also reduce your out-of-pocket expenses.
-
Research Claim Settlement Ratio
The claim settlement ratio (CSR) is an important indicator of an insurer’s authenticity. The higher the CSR, the higher your chances of getting a claim settled. Choose a provider with a high CSR.
Apart from CSR, you should also research the claim settlement timeframe. Generally, top insurance companies settle cashless claims within 60-90 minutes. If going for a reimbursement, then the company must settle it within 30 days of receiving the last documents.
-
Check Waiting Periods
Lastly, checking the waiting period is necessary, especially if you or your family member has any pre-existing condition. It is because your insurance will not cover the treatment for these diseases until you serve the waiting period.
Usually, insurance companies have a 2-year to 4-year waiting period for PED. If you cannot wait for that long, many insurers offer a PED buy-back add-on at higher premiums.
By checking these factors, you can ensure adequate protection for your family.
The Bottom Line
Investing in a comprehensive medical insurance policy is a smart way to ensure your family’s safety. For a family of 4, investing in a ₹10 lakh to ₹25 lakh health insurance plan ensures that every member’s needs are met, and you do not have to worry about the sum insured getting exhausted.
About The Author
