Why Family Health Insurance Plans are a Prudent Investment Decision

Health and financial security are likely the top priorities for your family. In fact, the COVID-19 pandemic has reinforced how unpredictable medical emergencies can be. Amid this uncertainty, accessing high quality medical care can take a toll on wallets. This is when having a family health insurance plan, especially to cover ageing parents, becomes essential to cushion the impact of medical exigencies. Health insurance can be a far more beneficial investment than many people realize, which is why purchasing a plan falls to the bottom of priority lists.

These days, you can purchase a customized health insurance plan for families, also known as a family floater plan, online in just a few clicks. Health insurance plans for family cover all family members, including yourself, your spouse, dependent children, dependent parents and even dependent parents-in-law, in the same plan. Some more comprehensive family health insurance plans allow you to cover extended family as well. In addition to health insurance, some insurers combine with life coverage options to protect the financial future of your loved ones in your absence.

As an optional form of insurance, many Indians do not place the purchase of health insurance packages high on their list of investments. The Insurance Regulatory and Regulatory Authority of India (IRDA) reported that only 35.5% of the population had access to health insurance in its 2018-2019 Annual Report, with 2.07 crore health insurance policies covering around 47.20 crore individuals in the country. Additionally, with health emergencies burning a hole in the pockets of the average Indian, there are important reasons to prioritize health insurance coverage to safeguard your family’s future. The National Statistical Office found in November 2019 that the average cost of hospitalization¹ in a government facility was Rs 4,452 and Rs 31,845 at a private facility.

Here are a few practical reasons why you should consider safeguarding your family’s health and future with a health insurance cover.

Emergencies happen when you least expect it

Many adults under 40 may feel they are healthy enough to skip out on health insurance, but the pandemic has been a grim reminder that medical emergencies can occur when it is least expected no matter your age. Sedentary lifestyles, unhealthy eating habits and work-related stress are on the rise and have contributed to chronic illnesses that are affecting the young and old alike. While these ailments can be managed, an unplanned health diagnosis can be financially stressful for the entire family to cope with. Opting for a health insurance plan for family, such as the Mera Mediclaim Plan from PNB MetLife (UIN: 117Y102V01), that covers annual medical checkups can help to avoid complications later.

Healthcare costs are rising

Healthcare costs have been rising fast in India, faster than wages and many consumer goods, making adequate health insurance a must-have. Factoring in the actual cost of medical expenses beforehand is practically impossible, so without insurance you may resort to tapping into your last available savings to deal with a medical emergency. Health insurance plans provide cashless treatment options for procedures so that your long-term financial goals are not impacted by a medical emergency.

Health insurance covers much more than hospitalization

Many health plans are also expanding to cover more procedures and services including diagnostic tests, scans, pre- and post-hospitalization expenses, day-care procedures and OPD visits. Most plans cover maternity benefits, and depending on your plan, you may gain coverage for services such as ambulance and alternative therapies too.

It can be a savvy investment strategy

Other than safeguarding your pocket from healthcare expenses, you can obtain tax benefits on the premium paid towards health insurance plans for you and your family. Specifically, you can claim a deduction of between ₹25,000 and ₹1,00,000 from your health insurance under Section 80D of the Income Tax Act. You may also receive a deduction of up to ₹5,000 for preventive health check-ups for yourself, spouse, dependent children, or dependent parents irrespective of age. The deduction benefit is also available for health insurance plans purchased for yourself as well as policies to cover a spouse, dependent children, or parents. Additionally, no-claim bonuses offered by providers are added to the sum insured for the total number of years in which there was no claim made by the policyholder to deliver additional security.

Investing in a health insurance plan for yourself and your family is a prudent choice, both in terms of securing access to quality healthcare as well as financial planning. Consider the features and benefits best suited to you and the insurer’s claim settlement ratio to make an informed choice. Visit PNB MetLife's website to know more about Life Insurance, Term Insurance & Term Plan.

¹https://www.thehinducentre.com/resources/article30980139.ece/binary/KI_Health_75th_Final_compressed.pdf

Whether you are trying to lose weight or making a shift towards a healthy life, understanding your BMI (Body Mass Index) is one of the first necessary steps you can make. The BMI calculator can indicate your body’s fat content based on your weight and height. Once you have a clear view of this, you can go through different health insurance plans on the PNB website and secure your future financially against the growing healthcare costs.