What is the Average Cost Of Health Insurance for a Family of 5?

Health emergencies can strike without warning, and having a comprehensive health insurance plan ensures that you are protected from the exorbitant medical expenses. For a family of five, the financial burden of a sudden illness or accident can be challenging to deal with. This is where a well-chosen health insurance family plan steps in, acting as a crucial safety net to protect your finances and, most importantly, your family's well-being. 

In this blog, we will discuss the average cost of family health insurance, so if you plan to buy a health insurance family plan, you know how much to expect in terms of money. 

Breaking Down the Numbers: Average Health Insurance Cost for a Family of 5

Before we begin, please understand that there is no concrete answer to this question. The average cost of health insurance for a family of 5 is a dynamic figure that can vary significantly. However, to give you a clear picture, a typical family floater plan for a family of five (two adults and three children) with a sum insured of, say, ₹10-15 lakhs, could range from ₹25,000 to ₹50,000 or even higher per year, depending on the insurer. 

Key Factors That Drive Family Health Insurance Prices

The premium you pay isn't a random number. It's a carefully calculated figure based on several variables that help the insurer assess risk. Understanding these factors is key to finding a plan that offers the right balance of coverage and affordability.

• Age of the Family Members: This is the most significant factor. The premium is generally determined by the age of the eldest member in the family. As people get older, the likelihood of health issues increases, and so does the premium. If you're an NRI looking for a health insurance family plan coverage for your elderly parents, it is advised to be financially prepared to pay the premiums. 
• Sum Insured: This is the maximum amount your insurer will pay for medical expenses in a year. A higher sum insured provides better financial protection but also comes with a higher premium. A family of five living in a metro city might need a higher sum insured to cover rising medical costs, which directly affects the family health insurance prices.
• Location: Where your family lives matters. The cost of medical treatment in a Tier 1 city like Mumbai or Delhi is significantly higher than in a Tier 3 city. Therefore, the premium for the same health insurance family plan will be higher for a family residing in a metropolitan area.
• Medical History and Lifestyle: If any family member has a pre-existing condition (e.g., diabetes, hypertension), the premium will be higher. Similarly, lifestyle habits like smoking can also lead to an increased premium. This is particularly relevant for NRIs who are seeking NRI health insurance for their parents, who might have age-related ailments.
• Plan Type and Riders: The kind of policy you choose also plays a major role. A basic plan will have a lower premium, while a comprehensive plan with add-ons like critical illness cover, maternity benefits, or OPD (Out-Patient Department) coverage will be more expensive. Choosing the right plan based on your family's needs is crucial to managing the average cost of health insurance for a family of 5.

In the Case of NRIs

For NRIs, the decision to buy a health insurance family plan in India is a smart one. It's not just about the convenience of having a local policy; it's also a financially sound choice.

• The Cost Advantage: Healthcare and insurance premiums in India are significantly lower compared to many countries. An NRI health insurance policy can provide a high level of coverage for a fraction of the cost you would pay abroad. This is a huge benefit for NRIs who want to ensure their families back home are well-protected without breaking the bank.
• Peace of Mind: The primary reason for investing in NRI health insurance is the peace of mind it offers. You know that if your parents, spouse, or children fall ill, they can access top-quality medical care in India without you having to worry about arranging funds on short notice. The policy handles the financial aspect, allowing you to focus on supporting your family emotionally.
• Coverage for Visits: NRI insurance policies also provide coverage for the NRI themselves during their visits to India. If you happen to fall ill or get injured while visiting your home country, the policy provides a financial cushion. This adds another layer of security, making it a truly comprehensive solution.

Wrapping Up

Understanding the factors that influence the average cost of health insurance for a family of 5 is the first step. The next step is to find the right policy that meets your family's specific needs and budget. A comprehensive health insurance family plan can be the most effective way to ensure that your loved ones are financially protected against any medical emergency. 

When it comes to finding a balance between coverage and reasonable family health insurance prices, a careful comparison of plans is essential. The average cost for health insurance for family of 5 is a number worth researching, as it can save you from unforeseen financial stress.

At Niva Bupa, we offer NRI health insurance with affordable premiums, access to more than 10,400 network hospitals across the country, and wide coverage with round-the-clock support. We aim to give you the best so you can completely focus on your recovery rather than worrying about the money.  

People Also Ask

1. What is a family floater plan?

   A family floater plan is a single health insurance policy that covers all members of a family under one sum insured. The entire sum insured can be utilised by any family member, either for one hospitalisation or multiple hospitalisations within the policy year.

    

2. Is a family floater plan better than individual plans?

   For a young family, a family floater plan is often more cost-effective as it covers everyone under one premium. However, if there's a senior citizen in the family, individual plans for them might be a better option, as a family floater plan's premium is based on the age of the eldest member.

    

3. What is the right sum insured for my family?

   The ideal sum insured depends on factors like your family's age, location, and medical history. As a general rule of thumb, for a family of five living in a metro city, a sum insured of at least ₹10-15 lakhs is recommended, considering the rising medical inflation.

    

4. Does the premium increase with age?

   Yes, the premium for your health insurance family plan will increase with age, especially when the oldest member crosses certain age brackets. This is because the risk of health issues and subsequent claims increases as one gets older.

    

5. Are pre-existing diseases covered?

   Most plans cover pre-existing diseases after a waiting period, which typically ranges from two to four years. It's crucial to disclose all pre-existing conditions at the time of purchasing the policy to avoid claim rejection later.

    

6. What is a cashless facility?

   A cashless facility allows you to receive treatment at a network hospital of the insurer without paying a penny from your pocket (up to the sum insured). The hospital and the insurer settle the bills directly, which is a massive convenience during a medical emergency.

    

7. Is it possible to port a family floater plan?

   Yes, IRDAI regulations allow for portability, which means you can switch your health insurance family plan from one insurer to another without losing the benefits you have accumulated, such as the waiting period for pre-existing diseases.

    

8. Do all plans cover maternity and newborn baby expenses?

   No, maternity and newborn baby coverage are often available as an add-on or a specific feature in certain plans and usually come with a waiting period. It's important to check the policy documents for these specific benefits if they are relevant to your family's needs.

    

9.  What is a waiting period?

   The waiting period is a pre-defined duration from the policy's start date during which certain illnesses or procedures are not covered. This can vary for different conditions and is an important clause to understand before purchasing a policy.

    

10. Can an NRI buy health insurance for their parents?

    Yes, NRIs can buy a health insurance family plan for their parents and other family members residing in India. This NRI health insurance ensures their loved ones are financially secure against medical emergencies, even in their absence.