A family health insurance is legally binding contract between an insurance company and a family. The contract ensures that the company covers all the medical expenses of every individual of the family. Family health insurance is usually purchased annually. There is no guarantee that the policy can be renewed or that the premium would remain the same year after year.
Family health insurance has the best of both the worlds – it is as cheap as group insurance and it can be personalised according to the medical needs of the individual members. It is often more attractive and affordable as compared to the other plans. The idea is to provide one comprehensive plan for the entire family instead of tedious individual plans. The overall cost of the premium is lessened and this makes family health insurance affordable.
Family health plans sometimes work out to be cheaper than subscribing to group insurance at work. It is 100% tax deductible and hence is a more lucrative insurance option.
