Wealth Guide: Family Health Insurance - Factors to consider before buying - Expert suggests these tips

Wealth Guide: Family Health Insurance - Keeping your family safeguarded from any financial distress that may arise due to an unpredicted medical condition, is of the main priorities of a person. A person can achieve financial security from such unforeseen circumstances by purchasing a Family Health Insurance policy. A family Health Insurance plan is a type of Health Insurance policy that provides medical coverage to the entire family at a single annual premium. Under this type of Health Insurance policy, family members such as spouses, parents, or children can be included without paying separate premiums for them regardless of their age. 

Purchasing a family Health Insurance policy can be a difficult task. Hence, it is advised to consider a few factors that will help you choose the correct plan for your family. Ankit Agrawal, Co-founder and CEO, InsuranceDekho, shares his knowledge on Family Health Insurance buying and suggests some tips to be kept in mind before purchasing a family Health Insurance plan.

Sum Insured: 

"It is always essential to choose a sum insured that is adequate enough to cover all our family members, and it is advisable to choose a high sum assured. A high sum assured will ensure that all your family members receive good treatment and the cost of treatment will be covered under the Health Insurance policy. But if you are not able to afford a high sum assured due to financial constraints, you always go for top-up plan plans along with your base policy at affordable premiums or gradually increase the cover amount of your base policy," Ankit Agrawal advised.

Pre & Post Hospitalization: 

"While purchasing a family Health Insurance policy, always make sure that pre and post-hospitalization expenses are covered under the policy. Pre-hospitalization expenses include consultation fees for the physician's X-Rays, MRI Scans, Blood Tests, ST scans, etc. Post-hospitalization expenses include follow-ups, check-ups, tests, etc. Always choose a family Health Insurance policy that covers the maximum number of pre and post-hospitalization days," Agarwal added.

Network Hospital:

"At the time of purchasing a family Health Insurance policy check the number of network hospitals that are associated with the insurance provider and will help in availing cashless treatment. It is better to choose a family Health Insurance plan from an insurance provider that has a high number of network hospitals," he explained.

Capping: 

"Capping in Family Health Insurance refers to the limit, i.e. the percentage up to which the insurance provider will settle the claim for hospital expenses such as room rent, ICU charges, and any other medical condition or disease-related capping in the policy. It is always advised to purchase a family Health Insurance plan that has no capping; otherwise, the policyholder will have to bear the remaining hospital expenses," he added.

Coverage for Day Care Procedure/Treatments: 

"Usually some Health Insurance plans cover daycare procedures/treatments but there can be limited as to which daycare procedure/treatment is covered under the policy. Always look for a Health Insurance policy that covers a maximum number of daycare procedures/treatments and has listed them in their terms and conditions," he further opined.

Restoration: 

"You can also consider restoration benefits as a factor while purchasing a Family Health Insurance policy. Restoration benefits refer to the facility offered by the insurance provider where the insurance provider restores the original sum insured in case the sum insured gets fully exhausted for the treatment of a person’s medical condition," he said.

Copay: 

"Copay is the option under which the insurance company settles a percentage of the claim and the remaining is borne by the policyholder. It isadvisable to purchase a Family Health Insurance policy that does not have a copay facility," he further added.

"Family Health Insurance plans are a great way to ensure the financial security of your family during medical emergencies. There are a plethora of family Health Insurance plans available in the market and before you make your decision, it is better to do some research on your end which can help you purchase a correct family Health Insurance plan. We hope the above-mentioned factors can help you choose and select a good family Health Insurance plan for your family," he concluded.

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)