What Is Family Health Insurance? Cover & Tax Benefits

Family Health Insurance, also known as a family floater health insurance plan, is a single health insurance policy that covers multiple family members under one shared sum insured. Typically, it includes self, spouse, children, and sometimes dependent parents.

Family health insurance offers comprehensive medical coverage at a lower premium compared to purchasing individual policies for each family member.


Who Is Covered Under Family Health Insurance?

Most family health insurance plans cover:

  • Self
  • Spouse
  • Dependent children
  • Dependent parents (optional, based on insurer)

Coverage can be customized depending on family size and medical needs.


What Does Family Health Insurance Cover?

A standard family health insurance policy includes:

1. Hospitalization Expenses

Room rent, ICU charges, doctor fees, medicines, and surgery costs.

2. Pre & Post Hospitalization

Medical expenses incurred before and after hospitalization.

3. Day Care Treatments

Procedures not requiring 24-hour hospitalization.

4. Cashless Treatment

Access to network hospitals across India.

5. Additional Benefits

Maternity cover, newborn cover, ambulance charges, and health check-ups (as per policy).


Number of Insurance Companies Offering Family Health Insurance in India

As regulated by IRDAI, family health insurance is offered by 30+ insurance companies in India, including:

Public Sector Insurers

  • New India Assurance
  • United India Insurance
  • Oriental Insurance
  • National Insurance

Private General Insurance Companies

  • ICICI Lombard
  • HDFC ERGO
  • Bajaj Allianz
  • Tata AIG
  • SBI General

Standalone Health Insurers

  • Star Health & Allied Insurance
  • Niva Bupa Health Insurance
  • Care Health Insurance
  • ManipalCigna Health Insurance

Tax Benefits of Family Health Insurance

Family health insurance offers attractive income tax benefits under the Income Tax Act, 1961.

Tax Deduction Under Section 80D

  • ₹25,000 for self, spouse, and dependent children
  • ₹25,000 for parents (below 60 years)
  • ₹50,000 for senior citizen parents
  • ₹50,000 if the policyholder is a senior citizen

✔ Preventive health check-ups up to ₹5,000 are included within the above limits.


Why Family Health Insurance Is Important

  • Covers the entire family under one policy
  • Cost-effective compared to individual policies
  • Protects against rising medical costs
  • Provides tax savings
  • Offers peace of mind during medical emergencies

How to Choose the Right Family Health Insurance Plan

  • Evaluate family medical history
  • Choose adequate sum insured
  • Check waiting periods and exclusions
  • Review hospital network
  • Compare premium and benefits

Conclusion

Family Health Insurance is a smart and economical way to protect your loved ones against medical emergencies. With multiple insurers offering comprehensive plans and tax benefits under Section 80D, family health insurance ensures both health security and financial stability.

At Saving Mantra, we help families choose the right health insurance plan tailored to their needs and budget.


Disclaimer

This blog is for informational purposes only and does not constitute medical, financial, or tax advice. Policy terms, coverage, and tax benefits are subject to change as per IRDAI guidelines and income tax laws. Readers are advised to consult a qualified insurance advisor or tax professional before purchasing any health insurance policy.