Jul 12, 2016 180

A Family Health Plan: The Best Gift you can Give to Your Loved Ones

Health insurance is the best gift you can ever give to your family. We always hope for the best and it’s prudent to stay prepared for the worst. A family health plan provides your loved ones with the security of their health, thereby avoiding financial consequences of the unforeseen events like a road accident that may result in total or partial permanent disability or even death of the policyholder. Probably, this is the best possible step you can ever take for your dear ones.

Term insurance is the only insurance plan that ensures the safety of the future of your loved ones when you are not around them. Your policy requires you to pay the premium and the nominee (i.e. your family) gets an assured benefit of Rs. 1 Crore or more if you die during the policy term. For instance, if you purchase a term plan at the age of 30 years for a term of 30 years, the premium will not be very high. 

No matter whether you purchase the best family health plan or a random one to save in taxes, the coverage you will get will depend on multiple factors while you will be able to pay the premium irrespective of that. You can also opt for protection enhancement through rider option, viz. critical illness rider, accidental death, and more.

Advantages of Health Insurance over Term Plans

A health insurance policy assures you about the safety of your health. It provides you with an assurance to pay your medical bills along with hospitalization expenses subject to maximum limit of the sum assured. By the way, you can ask for coverage enhancement to meet your requirements at an additional premium price. A family health plan allows you and your family members to file a claim or get claim reimbursement in the event of a medical emergency. 

You can get hospitalized at any of the network hospitals to avail required medical assistance for its cure. Once you take health insurance, the insurance company does issue a health card to you. Based on this card, you can avail hospitalization benefit at a network hospital. In the meantime, you need to keep your TPA (Third-party Administrator) informed about the same.

Who is TPA? 

A third-party administrator in a private organization that is to assist you regarding your policy’s benefits, such as hospitalization, claim settlement, reimbursement of medical bills and more. Contrast to that, a term insurance policy entitles your family or nominee to receive a fixed sum insured in the unfortunate event of your death during the policy term due to any of the reasons mentioned in your policy documents. Some term insurance plans provide ROP (i.e. Return of Premium) benefit, which entitles you to get back the premium you have been paying over the years.

The Verdict

Even though both health and term insurance policies are beneficial and provide you with the assurance to keep secure the future of your family, you may prefer to buy one over the other as per the future. However, before you purchase the best family health plan, make sure you compare multiple plans online to end up taking a wise decision.