Updated on 23 Dec 2025
Family health insurance is the first and foremost step towards protecting your loved ones from growing medical emergencies. A medical emergency experienced by a family due to the sudden health failure of a family member is likely to dent your savings when footing treatment bills. So, instead of buying different health insurance for each member, you can select a family health insurance that covers all the eligible members under one policy.
This provides benefits like cashless hospitalisation, coverage for maternity and pre-existing conditions after waiting periods and annual health check-ups. Read the entire blog and learn how to choose the right family health insurance.
What is a family health plan?
A family health insurance plan is a comprehensive plan that covers the entire family under one policy. It usually covers the policyholder, spouse, parents, children, and can also be extended to in-laws. It provides access to prime healthcare services. This plan covers your hospital bills, pre- and post-hospitalisation expenses and provides tax benefits. By choosing this plan, you protect your savings and secure healthcare access for your family.
What is covered by a family health plan?
The family floater feature of this policy, a total of 5 family members can be insured under a single health policy. This policy has a minimum entry age of 3 months which allows you to insure children as well as adults. The sum insured offered by this family health plan can be shared among all the family members or can be used by one family member during a medical emergency till the policy period expires.
Premium medical aid may not be uniformly available, or the health care facility in your locality may prove insufficient for treatment in case of sudden health complications. Such problems are taken care of by this comprehensive health insurance policy. ICICI Lombard has a tie-up with a wide network of hospitals all over India that offer premium medical care. Treatment at such a health care facility makes the insured individual eligible for a cashless health insurance benefit. This feature offered by the health insurance policy offers relief from paying large hospitalisation bills. As all the medical bills and treatment costs are settled by the insurance provider, you do not have to worry about high hospitalisation bills.
You can also extend the coverage of this policy by purchasing optional covers like the Critical Illness cover and Donor Expenses. With the Critical Illness cover, the insurance provider offers monetary aid if the insured individual is diagnosed with a major illness and a medical procedure is covered under this policy. The Donor Expenses optional cover makes the insured individual eligible to receive reimbursement for an amount up to Rs. 50,000 during any organ transplant surgery.
How to select the best cashless mediclaim policy for the family?
To get the best cashless mediclaim policy for your family, check out the points given below.
- First, review your family's needs. A family floater is cost-effective for young families, but senior citizens may need a separate policy.
- Then, select the sum insured that can handle high medical costs in cities. Add a top-up plan if required.
- Make sure your preferred hospitals are covered for cashless treatment.
- Check for sub-limits, co-payments and waiting periods for pre-existing diseases.
- Evaluate the claim settlement ratio; a high CSR shows better chances of smooth claim approval.
- Look for benefits like no-claim bonuses, restoration of sum insured and modern treatment coverage.
- Lastly, make sure that your policy can be renewed without any age restrictions.
Benefits of family health insurance
The following points show the benefits of having family health insurance.
- Get financial protection against emergencies: Hospital stays, medical treatments and surgeries can cost a lot. A family health insurance plan protects you from such expenses, allowing you or your family to focus on getting better.
- Pre and post-hospitalisation expenses: Policies usually cover expenses incurred before entry and after discharge for a specific number of days.
- Preventive care and check-ups: Some plans cover annual check-ups and preventive screenings, which help detect health issues early and reduce long-term risks.
- Tax benefits: Under Section 80D of the Income Tax Act, the premiums you pay for family health insurance can be subtracted from taxable income.
- Peace of mind: A family health insurance plan keeps you prepared for medical emergencies, reduces stress and gives you confidence in managing your family’s health.
Conclusion
Family health insurance provides financial support and safeguards the family's overall well-being. It brings financial stability, covers hospitalisation and preventive care and also helps you save through tax benefits. Select the right plan to ensure that your family has access to quality treatment without lowering your savings. Plan ahead to reduce the stress that comes your way during those difficult times.
Fill out the form on this page to get expert advice and find a family health insurance plan that matches your requirements and budget.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It is not intended as a substitute for professional advice, diagnosis or treatment. Please consult a certified medical and/or nutrition professional for any questions. Relying on any information provided in this blog is solely at your own risk, and ICICI Lombard is not responsible for any effects or consequences resulting from the use of the information shared.