Does family size impact your Health Insurance cost?

The number of family members has a significant impact on the premiums for health insurance plans for your family. Here’s how it affects your insurance cost.

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In the current climate, where stressful and sedentary lifestyles have taken over, there is a serious need for an adequate health insurance plan. With the right policy, you can eliminate or at least reduce the burden that medical treatments have on your finances.

However, when it comes to choosing health insurance plans for a family, everything is not as easy as it may seem. You need to put a lot of thought into it. For instance, you should pay attention to whether the policy covers all of the needs of the family while simultaneously ensuring that the premiums continue to remain affordable.

One of the many factors that can have a significant impact on the premiums of health insurance plans for a family is the number of members present. Here’s some more information regarding family size and its impact on health insurance costs.

Does the Size of a Family Have an Impact on Health Insurance Premiums?

Yes. The number of members in a family can have a significant impact on the premiums that you would have to pay towards a health insurance policy. Generally, the larger the size of a family, the higher the premiums are likely to be.

For instance, if the health insurance premiums for a 3-member family come up to about ₹7,000 per month, it may come up to anywhere from ₹12,000 to ₹14,000 for a 6-member family. This would be the case even though the medical costs for a family of 6 individuals may turn out to be lesser than the medical costs for a family of 3.

That’s not all. While the number of members in a family has a direct impact on the premium, it impacts it indirectly as well. Here’s how. The larger the family, the greater the sum insured amount that you would have to opt for to ensure that all of them get the right amount of coverage. And opting for a higher sum insured amount will also lead to an increase in health insurance costs.

Here’s an example to help you understand how health insurance costs fluctuate according to the size of a family.

Assume that you have a family floater health insurance plan that provides coverage for yourself and two of your parents. The total sum insured amount as per the policy is ₹30 lakhs. The premium that you’re required to pay towards this plan comes up to say ₹8,560 per month. Now, on account of your getting married, you opt to include your spouse in the family floater insurance plan.

The addition of a spouse to health insurance plans for a family would lead to an increase in the premium. In this case, say that the premium that you would have to pay each month gets revised to ₹9,785.

Now, say that you choose to increase the sum insured amount from ₹30 lakhs to ₹50 lakhs on account of a new member being added to your health insurance plan. This revision in the sum insured would contribute to an increase in the premium of your health insurance plan as well. Let’s say that the premium increases to ₹11,233 on account of an increase in the sum insured amount to ₹50 lakhs.

As you can see from the above example, the size of a family has both a direct and indirect impact on the health insurance premium that you’re required to pay.

Conclusion

With this, you must now be aware of the kind of impact that the size of a family has on health insurance costs. When it comes to shopping for health insurance plans for your family, you shouldn’t just focus on the premiums alone.

Instead, you should pay attention to the level of coverage being offered as well. Different plans provide different coverages, so make sure to do a detailed comparison of multiple health insurance plans for a family before proceeding to purchase one for yourself.

In addition to helping you get the right coverage for your family, comparing multiple policies can also help you save on health insurance costs.