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Impact of Family Size on Health Insurance Costs: A Comprehensive Guide

TeamAckoFeb 29, 2024

Hectic schedules, lifestyle, accidents, and pollution are a few factors that can affect your family’s health. Moreover, the rising expenses of medicines and healthcare facilities can be stressful, for which healthcare planning also becomes an essential part of life.

Hence, family health insurance is the best gift you can give to your loved ones. However, before availing a family health insurance plan, you must understand its impact on your health insurance cost. In this blog, we will discuss the impact of family size on your health insurance cost, how it works and other necessary details. 




Does Family Size Impact Your Health Insurance Cost?

When you avail family health insurance, you will cover your family in a single policy premium and must pay it regularly to the insurer. The insurance policy takes care of the medical expenses of your family. If you have a big family, it does not necessarily mean you will have higher medical expenses. 

However, family size has an impact on health insurance prices. The premium of the family insurance policy increases every time a new member is added to the policy. In addition, the eldest member’s age plays a crucial role in determining the premium. It increases the premium of the family insurance policy.

How Does Family Health Insurance Work?

A family health insurance plan is a comprehensive health insurance policy. It assists you financially when any insured member of your family gets hospitalised. Unlike individual health insurance policies, this plan enables you to insure your entire family under a single plan. 

For instance, if your family health insurance plan has a sum insured of Rs. 7 lakh, and an insured member gets hospitalised, you can use this amount to pay the expenses. However, if the expenses are less than Rs. 7 lakh, the other insured  family members can use the remaining amount in case of another medical emergency. In this way, all the family members can share the sum insured of this plan.

If in case one member uses the entire amount, you will have to bear the treatment cost of other members. However, in case of the death of a member, the other members can use the assured sum. 

What are the Benefits of Opting Family Health Insurance Plans?

Here are a few notable reasons why you should opt for health insurance plans for the family:

Avoid Financial Issues

Opting for family health insurance will enable you to avoid a financial crunch during medical emergencies. These emergencies can be emotionally challenging, and the financial burden will worsen the matter. Hence, a family health insurance policy will help you cope with such issues.

Access to Medical Care

Availing family health insurance enables you and your family to access timely medical care. It will cover your expenses related to preventive care, like vaccinations and annual check-ups. Hence, it will help you and your family stay healthy and active, and avoid any expensive medical problems.

Coverage for the Entire Family

A family health insurance plan covers the entire family under one policy. You can cover yourself, spouse, dependent children, dependent parents and dependent parents-in-law. Moreover, some policies even allow you to add your extended family members to the plan. 

Affordable Premiums

The family health insurance monthly premium is more affordable than individual health insurance plans for each member. Hence, it makes the family health insurance policy an affordable option for everyone in your family.

What are the Things to Consider Before Buying Family Health Insurance Plans?

You must consider certain things before buying a family health insurance plan for your family. These things are as follows:

Sum Insured

The sum insured refers to the maximum amount of money the insurance company will pay for your medical expenses. Hence, you must choose an amount that is adequate to fulfil the potential medical expenses of your family members. 

In addition, you must choose a higher sum insured if the plan includes your parents or any member with pre-existing medical conditions or a high-risk lifestyle. However, the sum insured must be affordable so it does not strain you financially.

Premium Amount

If you opt for a medical insurance policy for your family with a high sum insured, the premium amount will increase. If you opt for additional coverage such as accidental death, dismemberment, or critical illness, it will increase your premium.

In addition, increasing the existing policy's sum insured will also lead to an increase in their premium amount. Hence, you must choose a family health insurance plan that aligns with your financial status. 

Hospital Coverage

A wider hospital network coverage offers you more options and makes it easier to avail cashless treatments. Cashless treatments mean that you do not have to pay the hospital for the expenses. The insurance company will pay the bill directly to the hospital. 

Hence, you must choose an insurance company that covers the hospital near your home or workplace. Hence, it will reduce your financial burden during a medical emergency.

Claim Settlement

One of the most crucial phases for a policyholder is when they need to raise a claim for medical expenses. The process of claim settlement has to be simple and smooth. Hence, you must choose an insurer with a smooth and straightforward claim settlement process. 

In addition, you can seamlessly claim your health insurance reimbursement through the ACKO application. To do this, you must upload the necessary documents and submit your claim application.

Pre and Post Hospitalisation Coverage

Another significant point that you must consider before buying a medi claim policy for your family is the pre-hospitalisation and post-hospitalisation coverages. This is because medical expenses can happen before and after the hospitalisation of an insured  member. These expenses include diagnostic tests, doctor visits and medications. 

In addition, you must check whether the plan covers daycare procedures, as it will reduce the financial burden on you. 

Wrapping up!

Your family size impacts the family health insurance cost as you have to pay additional premium amounts if you add new members to the plan. However, since the treatment cost is rising, availing a family health insurance plan is more affordable than individual health insurance plans as it reduces your financial burden arising during medical emergencies. 

Opt for an ACKO Family Health Insurance Policy today with multiple benefits and cashless hospitalisation in some prominent hospitals across India.

Frequently Asked Questions

Given below are answers to some commonly asked questions about health insurance costs.


Does health insurance cover all family members?

You can avail a family insurance policy to cover your family members in one plan. It will cover the medical expenses of your family under one policy.

Which factors affect the family medical insurance price?

The following affects the family medical insurance price:

  • Family Size
  • Occupation
  • Medical History
  • Policy Duration
  • High-risk Lifestyle


Can I add my parents to the family health insurance policy?

Yes, you can add your parents to the family health insurance plan. In addition, you can add your spouse, dependent children and dependent parents-in-law to the policy.

Can I remove a family member from the family health insurance plan?

Yes, you can remove a family member from the family health insurance policy. To do this, you must contact the insurer and request them for the removal of a member.

How much does Rs. 10 lakh health insurance cost to a family of 4 members?

A family health insurance plan for 4 members with a sum insured of Rs. 10 lakh will cost between Rs. 25,000 to Rs. 40,000 per annum. 

What is the maximum mediclaim limit for a family health insurance plan?

The family health insurance plan's maximum medi claim limit depends on the sum insured you choose while buying the plan. 

How to choose the best family health insurance plans?

You must consider the following points to choose the best family health insurance plan:

  • Understand your insurance requirements and your budget.
  • Compare various insurers and plans according to your requirements.
  • Compare the premiums and coverage to make an informed decision.



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