What Health Insurance Plans Cover Family Members in India?

Written by : Knowledge Centre Team

2025-12-20

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7 minutes read

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What if you could cover your family’s needs with one health insurance policy? Yes, it is possible through family health insurance. The question arises, why is it necessary to cover your family members? After all, most health insurance plans are to protect you during your old age.

Well, covering your family members is an act of reassurance. During emergencies, you do not have to worry about liquidating your assets. Instead, you can choose to find the best resources for your family.

Getting a family health insurance policy saves you both time and money during financial problems. It can also be extended to include new members of the family. Find yourself a plan that can adequately cover your entire family. In this blog, we will explore what is family health insurance, how it works, key benefits and tips to choose the best plan for your loved ones.

Key Takeaways

A single family health insurance plan can cover all members under one affordable premium.
You can add newborns or a spouse to your existing policy without hassle.
Shared sum insured ensures flexible access to funds during medical emergencies.
Tax benefits under Section 80D make it a smart financial decision.
Canara HSBC Life Insurance offers strong claim support with a 99.31% settlement ratio.

What is Family Health Insurance?

Family health insurance plans cover your whole family under a single policy. This type of health insurance serves as a financial cushion for your loved ones. It secures your family’s needs and covers more than one person.

These plans simplify the process of managing health coverage while saving costs. Whether it’s for your spouse, children, or elderly parents, a family floater policy ensures comprehensive protection under one umbrella.

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How Family Health Insurance Works?

Family health insurance allows you to use a shared sum insured. Here’s how different elements

make a beneficial, forever member of the household.

Shared Sum Insured : In a family health insurance policy, the entire family shares one sum insured. For example, if the policy has a cover of ₹5 lakh, any member can use it. This ensures coverage remains cost-effective.
Single Premium for Entire Family: Instead of paying multiple premiums for individual health plans, you pay a single premium for the whole family. This consolidated approach reduces the financial burden and simplifies payment tracking. You also benefit from lower premium rates compared to buying separate policies for each person.
Add or Remove Family Members Easily: Most family plans allow you to add new family members, like a newborn or a spouse, after marriage. Similarly, you can remove members in case of changes in family structure. This flexibility ensures the policy stays relevant and aligned with your life stage.
Cashless Hospital Network Access: Family health insurance policies include access to a wide network of cashless hospitals. During an emergency, you can admit your family member, and the insurer settles the bills directly with the hospital. It eliminates out-of-pocket payments and speeds up the treatment process.
Tax Benefits Under Section 80D: When you buy family health insurance, you can claim tax deductions under Section 80D of the Income Tax Act. You can claim up to ₹25,000 (or ₹50,000 for senior citizen parents) for the premium paid. This offers dual benefits, financial protection and tax savings for your family.

Disclaimer: Tax benefits are subject to change in tax laws. Please consult your tax advisor.

Benefits of Buying the Best Family Health Insurance Policy.

Family health insurance policies can have multiple benefits for you. If you want to leave a legacy behind for your children, you should invest your income wisely in multiple income instruments. Unfortunately, such investments do not account for the medical expenses of the family. In case of a terminal illness or an injury, you will have to tap into your savings.

Choose a health insurance plan that covers your entire family and can take care of the expenses. It is also a wise income instrument. A family health insurance plan takes care of your medical needs. It also ensures that every member of the family is well protected.

Here are some reasons why you should opt for health insurance policies that cover your family:

Covers Medical Expenses: One of the most important functions of family health insurance is covering medical expenses. With rising rates of medicines and treatments, it is better to have insurance coverage. Moreover, the cover is adjusted for inflation.
Budget-Friendly Premiums: The affordable pricing of family health insurance plans makes them more accessible to the masses. You can choose a plan according to your budget and calculate the premium online.
Add-ons for Greater Benefits: Family health insurance plans come with additional benefits. The plan can be upgraded to include maternity cover, newborn baby cover, and more.
Tax Benefits with Health Insurance Plans: Section 80D of the Income Tax Act states that health insurance covers are exempted from taxation. This is a great advantage of health insurance plans. It helps you with both savings and wealth creation.
Health Insurance for New Members: Expectant parents can also cover their newborns. Newborns are often prone to illnesses, which makes a health insurance plan necessary.

Read why new parents should buy a life insurance plan.

Things to Consider While Buying the Best Family Health Insurance Plan

Before choosing a health insurance plan for your family, start with a thorough self-assessment, especially of your current financial situation and healthcare needs.

Coverage: Your premiums depend on the kind of coverage you want for your family. This includes skimming through the clauses of the policy. Premiums should be based on your needs. They seek to provide you with maximum benefits. For instance, if you are an expecting parent, you will need to include the new member in the plan.
Price point: Family health insurance plans are flexible. They are tailored to suit the Indian market and have a range of low-premium policies. Find a plan which suits you best, and stick to it.
Family Plans Instead of Individual Plans: Life is uncertain. Therefore, you need a plan that can cover your entire family. Instead of adding just your parents to the list, include your children too. More members mean that you save more money in the long run.
Renewability: Find a plan which offers lifetime renewability as opposed to limited renewability. This is because most of us require a health insurance plan for the later years of our lives.
Good Claim Settlement Ratio: The claim settlement ratio is nothing but the number of claims settled by an insurance company. The insurance provider must have a good ratio, so you know that they will deliver their promise.

Note: Canara HSBC Life Insurance has a claim settlement ratio of 99.43%

Online Premium Calculators: You can check your premium through online calculators by Canara HSBC Life Insurance before choosing to invest your money. This helps you plan for your health insurance premium in advance and allows you to achieve your financial goals.

Buy the Best Health Insurance Plan Online

A health insurance plan that covers your entire family will be crucial in the coming years. It will help you prepare for medical emergencies and cope with the economic downturn. Therefore, obtaining a family health insurance plan online is crucial to achieving a financially secure future.

Purchasing a family health insurance plan online offers convenience, quick comparisons, and the ability to tailor your coverage to your specific needs. It’s a smart step toward building a financially secure future.

Conclusion

Investing in a family health insurance plan is one of the smartest ways to secure your loved ones against rising medical costs. It offers peace of mind, flexibility, and financial stability during emergencies. Choose a trusted insurer like Canara HSBC Life Insurance to get comprehensive coverage, easy claims, and reliable customer support for your family’s well-being.

Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.