Who Can I Include in a Family Health Insurance Plan?

Health insurance policies are gaining popularity due to the increased costs of medical treatments. Every individual, regardless of age, needs to have a health insurance policy since a medical emergency can strike anyone and at any time. If you are living with your family and have purchased a health insurance policy for all members, then the total premium amount can be high.

Opting for a family health insurance policy can help you consolidate all the policies and get all your family members insured. Today, we will talk about family health insurance plans and look at who you can include in such plans.

Which Family Members Can You Include in a Family Health Insurance Plan?

When you purchase health insurance plans for family, you can add the following family members to the policy:

  • Spouse
  • Children
  • Dependent parents
  • In-laws
  • Siblings

While most policies allow policyholders to only include their spouse, children, and dependent parents, in some cases, insurers can allow the addition of siblings and in-laws. Further, most Family health insurance plans have a maximum age limit of the members that you can add. While these policies allow you to add your parents to the policy, it is not advisable.

Why Should You Keep Your Family Out of a Family Medical Insurance Plan?

While a family health insurance plan is designed for your entire family, you should not be adding family members in one health insurance. Particularly, keep your parents out of it for the following reasons:

  • Usually, the health insurance premium is higher for individuals above the age of 40. Hence, including your parents can usually result in a marked rise in your total premium.
  • People above the age of 40 are more likely to have pre-existing diseases compared to younger people. When you purchase a health insurance policy, if you have a pre-existing disease, then the insurer will charge a higher premium. Also, people with pre-existing conditions can require regular hospitalisation, which can impact your No Claim Bonus. You can also look for critical illness cover for your parents, like cancer insurance, if they suffer from any such ailment or if the family has a history of certain diseases.
  • More members in the family health insurance policy results in a higher sum insured and a higher premium.
  • In a family health insurance plan, a common sum insured is used by all family members. In case your parents need frequent hospitalisation, then the available sum insured for the rest of the family can reduce.

Therefore, it is prudent to opt for a separate health insurance policy for your parents. There are many policies that are designed for people over 40.

Things To Keep In Mind While Selecting A Family Health Insurance Policy

Here are some things to remember while selecting health insurance plans for your family:

  • Waiting Period – When you buy a family health insurance policy, you might have to get through a waiting period before filing a claim. This is applied when any family member has a pre-existing medical condition. This can extend from 2 to 4 years. Before buying a policy, make sure that you choose one with the shortest waiting period.
  • ●      Premium Amount – Many people purchase a health insurance policy by looking for the one with the lowest premium. However, if this means a lower sum insured, then it might not cover your medical costs. Hence, look for an insurance plan that offers the highest sum insured for the same premium.
  • Cashless hospitalisation – Many insurers offer a cashless hospitalisation benefit where policyholders can avail of hospitalisation without paying from their pocket first and claiming a reimbursement later. This can be a boon during medical emergencies.
  • Claims Settlement Ratio – Make sure that the insurance provider has a high claim settlement ratio.

Summing Up

It is important to ensure that you choose the right family health insurance plan so that you can handle family medical emergencies with ease. When you are applying for one, make sure you assess the medical history and requirements of all family members and choose a cost-efficient plan that offers a high sum insured and optimum coverage. Good Luck!