Significance of Family Health Plan

Nutan Gupta

27 Jun 2017

New Page 1

Family is one of the life’s greatest blessings. They are your strength because they see you through good and most importantly through bad times. Thus, it makes sense that when it comes to them and their well-being, only the best is acceptable. And in the insurance world, the best for your family translates to a family floater plan.

What is a Family Floater Plan?

In quite simple terms, it means insurance coverage for you as well as your family. If you are the only working member with dependents, then this is an ideal plan in terms of savings. It is a basic comprehensive health plan specifically designed to provide coverage to entire families.

A family health plan proves to be a godsend when it comes to protecting the finances as well as the health of an entire family, and all this in one policy package!

Which is better – An Individual Health Insurance Policy OR a Family Health Plan

*Given figures are only for demonstrative purposes.

As you can see from the above example, with a family health plan, Mr.Nair and family get better coverage while at the same time paying a lesser premium amount. Moreover, he avoids the hassle of handling multiple insurance policies.

Suppose, Mr.Nair’s father has to undergo hospital treatment that amounts to Rs.3 lakh. The Nair family still has a cover of Rs.7 lakh to safeguard them from treatment costs for the remaining of the year. Under an individual health insurance plan, Mr.Nair’s father would have had to pay Rs.1 lakh out of his own pocket as his insurance coverage was only up to Rs.2 lakh.

The Worry of Rising Medical Prices

With the steep inflation of medical prices, getting even a simple procedural treatment can prove to be a costly affair. Though newer treatments, innovative healthcare, and revolutionary drugs are increasing life expectancy, they are also proportionately increasing the cost of treatment. Add to that the responsibility of the health costs of an entire family and you’ve got a constant worry on your hands.

It is important to note here that, in case any one family member utilizes the sum assured before the end of the policy year, the other family members won’t be able to benefit from it for the remaining part of the year.

A Better Plan for Everybody

Due to the changing insurance scenario, many insurance companies offer tailor-made policies that cater to family needs with a number of added benefits. With facilities like Daily Cash, Maternity Cover, Health Check-up, Ambulance Charges, Dental Cover, OPD Coverage etc. family health plans are becoming more popular because of the advantages they offer. Insurance companies are also offering coverage for extended family members.

However, having said all that, it is imperative that you do thorough research about the features and benefits before selecting any family floater health insurance plan. By carefully combing through the policies, you can find minute differences that can prove invaluable – you can save money on premiums while getting similar superior benefits.


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mutual-fund

Why to Choose Mutual Funds Instead of Directly Investing Into Equities?

Whether to invest in equities or mutual funds is a question that has plagued every investor. As someone who needs the best value for his/her investment should you invest in equity directly or via mutual funds?

Let’s start by first understanding what these two terms ‘equities’ and ‘mutual funds’ stand for-

Equities- Equities generally represent ownership of a company. If you own any equity in a company, you are a part owner of the said company (depending on how much equity you own).

Mutual Funds – It is an investment scheme which is professionally managed by an asset management company. It pools together the resources of a group of people and invests their money in equities, debentures, bonds and other securities.

Why choose mutual funds over equities?

For people who’ve never invested in either stocks or mutual funds, it is hard to know which is better and where to start. Broadly speaking, if you are a novice investor, mutual funds are not only less risky but also way easier to manage. Here are some ways in which investing in mutual funds is beneficial as opposed to investing in equities -

Diversification

Mutual funds provide more diversification as compared to an individual equity stock. When you invest in equity, you are investing in a single company which has its inherent risk. For example, if you invest Rs.20,000 in buying equities of one company, you could face a total loss if that particular company performs poorly in the market.  

If you invest the same amount in mutual funds, it will be invested in different kinds of stocks and financial instruments, high-risk and low-risk both, so you might not face total loss even if one company does poorly.

Scale of Investment and Lower Costs

For an individual investor buying and selling stocks is a difficult task due to its high price. Thus, any gains made from stock appreciation are nullified if the overall trading costs are considered. Comparatively with mutual funds, as the money is pooled from a large number of investors, the cost per individual is lowered.  

Another advantage of mutual funds is that you don’t need to invest large sums of money. Buying equities for a profitable venture needs huge amounts of money, a minimum of few lakhs. With mutual funds, you can start with Rs.1000 and earn profits on that as well.

Convenience

Keeping an eye on the markets everyday is a time-consuming business, especially if you are investing as a side gig. There are people who spend their lives studying the market and still end up sustaining heavy losses. Though investing in mutual funds does not guarantee high returns, it is stress-free and needs less work as compared to investing in equities.

To sum it up

It is important to remember that mutual funds have their own disadvantages as well. Thus, as with any financial decision, educating yourself and understanding the suitability of all the available options is the ideal way to invest. 


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Significance of Family Health Plan

Nutan Gupta

27 Jun 2017

New Page 1

Family is one of the life’s greatest blessings. They are your strength because they see you through good and most importantly through bad times. Thus, it makes sense that when it comes to them and their well-being, only the best is acceptable. And in the insurance world, the best for your family translates to a family floater plan.

What is a Family Floater Plan?

In quite simple terms, it means insurance coverage for you as well as your family. If you are the only working member with dependents, then this is an ideal plan in terms of savings. It is a basic comprehensive health plan specifically designed to provide coverage to entire families.

A family health plan proves to be a godsend when it comes to protecting the finances as well as the health of an entire family, and all this in one policy package!

Which is better – An Individual Health Insurance Policy OR a Family Health Plan

*Given figures are only for demonstrative purposes.

As you can see from the above example, with a family health plan, Mr.Nair and family get better coverage while at the same time paying a lesser premium amount. Moreover, he avoids the hassle of handling multiple insurance policies.

Suppose, Mr.Nair’s father has to undergo hospital treatment that amounts to Rs.3 lakh. The Nair family still has a cover of Rs.7 lakh to safeguard them from treatment costs for the remaining of the year. Under an individual health insurance plan, Mr.Nair’s father would have had to pay Rs.1 lakh out of his own pocket as his insurance coverage was only up to Rs.2 lakh.

The Worry of Rising Medical Prices

With the steep inflation of medical prices, getting even a simple procedural treatment can prove to be a costly affair. Though newer treatments, innovative healthcare, and revolutionary drugs are increasing life expectancy, they are also proportionately increasing the cost of treatment. Add to that the responsibility of the health costs of an entire family and you’ve got a constant worry on your hands.

It is important to note here that, in case any one family member utilizes the sum assured before the end of the policy year, the other family members won’t be able to benefit from it for the remaining part of the year.

A Better Plan for Everybody

Due to the changing insurance scenario, many insurance companies offer tailor-made policies that cater to family needs with a number of added benefits. With facilities like Daily Cash, Maternity Cover, Health Check-up, Ambulance Charges, Dental Cover, OPD Coverage etc. family health plans are becoming more popular because of the advantages they offer. Insurance companies are also offering coverage for extended family members.

However, having said all that, it is imperative that you do thorough research about the features and benefits before selecting any family floater health insurance plan. By carefully combing through the policies, you can find minute differences that can prove invaluable – you can save money on premiums while getting similar superior benefits.