Know How Family Medical Insurance is An Essential Investment




The costs of healthcare in India are on the rise. So, when medical emergencies happen, they are bound to create tense moments for any family. Surgeries and medical treatments, especially at private hospitals, have become expensive. Thus, it hints at the need to have an emergency fund to enable a family sail through such difficult situations. Investing in a family medical insurance plan is a good idea as it will protect one’s hard-earned savings. 


Having a comprehensive family health plan will provide coverage for various medical expenses involved in hospitalization and treatment of ailments. Many people in India continue to depend on their employer-provided mediclaim policy, which may not be available when one leaves the employer. Family medical insurance plans, on the other hand, help you get lifelong protection against medical expenses. 


This article explains how having health insurance is the best investment option for a family.  


Tax Savings under Section 80 of the I-T Act


We all make investments to lower our tax liabilities. Family medical insurance also helps save taxes. The insured becomes eligible for availing of tax deductions, up to Rs 25,000, on the premium, as per Section 80D of the Income Tax Act. 


Senior citizens are eligible for a higher deduction of Rs 50,000. So, those who have dependent elderly parents are eligible to save considerably on taxes. 


Affordable Coverage for Medical Expenses


A family health insurance policy protects a family against the burden of medical bills. They cover medical expenses, such as hospitalization bills, room rent, ambulance charges, pre and post hospitalization, day care treatment, alternative treatment, etc. Additionally, it covers expenses related to preventive healthcare in the form of annual health check-ups. 


So, keeping medical inflation in mind, a family health cover becomes an ideal investment option. Furthermore, all the family members are covered in one policy, so it becomes more affordable than individual policies. 


Financial Cushion for the Future 


As we age, we also need to think about retirement and income sources to manage our daily expenses and healthcare-related expenses. Ageing brings along various health risks, and at this stage, your loved ones require utmost care and medical attention. Lifelong renewability is one of the best features of medical insurance designed for a family. It means that one can get continued coverage through regular policy renewals without buying another health policy. Thus, a family floater plan is good financial support that will safeguard a family in the future. 


Cumulative Bonus


Most insurers, such as Care Health Insurance and HDFC Ergo, offer cumulative bonus, also known as no claim bonus, in their family medical insurance plans. The benefit is available to an insured every year without filing any claim. Care Health Insurance provides a no claim bonus of 10% of the sum insured. 


This benefit helps one to increase the coverage amount without paying a higher premium. The increased sum insured would be useful in the future.




In the times we live, medical expenses become unavoidable, mainly when we see that even younger adults are becoming prone to various lifestyle diseases. Investing in a family floater plan is a wise decision because it also helps families plan their finances better; they can concentrate on building their funds for achieving other life goals and stop worrying about rising medical costs.