Benefits of family health insurance Many people have taken out health insurance in recent years , to help reduce health expenses and have access to private doctors and hospitals. But when the family grows, is it worth continuing with individual health insurance or is it preferable to take out family health insurance that encompasses all members of the household?
In general, family health insurance can bring numerous advantages for managing the family budget , as well as ending up translating into good annual savings. Learn about the advantages of taking out family health insurance.
6 advantages benefits of family health insurance
Table of Contents
1 – Possibility of annual savings compared to taking out individual insurance for everyone
As the family grows or the need arises for a family member to subscribe to health insurance, individual policies may no longer be the best option. When taking out family health insurance, most insurers offer a discount for each additional member you want to include in your policy.
For example, if a couple wants to add one parent plus their two children, their health insurance policy will have 5 elements. The most common in these situations is to benefit from a significant discount for the number of elements added to the policy . If you compare the amount that the insurer will present you as a monthly fee for family health insurance with the sum of the monthly amounts for each person’s health insurance, you can have significant savings.
In addition, by bringing your whole family together in a single insurance, there is the possibility of having access to other more specific coverage with more attractive prices. This is because there are some coverages that are only included in insurance options with higher values. If you have a more specific need, you can try to negotiate your conditions to be able to include it in your policy for the best value.
It is advisable that you do some simulations and compare the conditions and coverage that each insurer offers. While the monetary savings may be what immediately jumps out at you, if that insurer has disadvantages for the older member of the family you should be aware of that.
2 – It is more practical to have only one policy
Even if you are a very organized and careful person with your finances, managing just one policy is much more practical than managing five. Imagine that there are 5 people in your family who are covered by individual insurance or that two are in one insurer and the rest in different insurers. Not to mention the level of bureaucracy you’ll have to deal with annually if you need insurers to reimburse you. In addition, you will have several invoices to pay with different deadlines.
Also Read: What is Family Health Insurance
By putting all your family members under one health insurance plan, you only have one policy to deal with. In addition to only having one bill to pay , you also only have to deal with one insurance company. Apparently not, throughout the year, the number of calls and bureaucracy involved decreases, which will greatly simplify your life whenever you have to resort to insurance.
3 – All members can be attended to in emergency rooms and private hospitals
The National Health System has great professionals, however the waiting lists for a specialty appointment are long. By having all of your immediate family members covered by health insurance, you can have faster access to healthcare and greatly reduce your time in waiting rooms.
Of course, at an early stage, you may wonder about the financial effort you will have to make each month to include the whole family in a policy. In these cases, the ideal is to review your family budget and see how much you can afford to guarantee health care. As this is one of our highest priorities, it may be necessary to look at some of our expenses to see where other expenses can be cut.
4 – Increase your negotiation margin when contracting a new insurance
If you took out family health insurance a few years ago, but are now not satisfied with the conditions offered, you have the right to try to renegotiate them. In this specific case, the insurance company is aware that its policy represents several clients. Therefore, your trading margin is greater than customers who only have an individual policy.
If you have found an insurer that offers better conditions for your specific case, do not be afraid to put this issue on the table. The most likely thing is that, given these facts, your insurance company will present you with a new solution, as it has no interest in losing several customers at once. As a last resort, if the insurer does not show interest in improving your conditions, contact other entities and explain your situation and what you are looking for. The truth is that we often lose the possibility of saving some money, because we don’t want to look for new, more advantageous solutions.
5 – There is the possibility of obtaining more attractive discounts on other insurance
Still within the advantages of having insurance that covers several members of your household, it is possible to benefit when you need to take out new insurance. Most companies, including insurance companies, offer good conditions to customers who have several products or services contracted.
Given that your policy represents a higher number of customers, you have more room for maneuver if you want to lower the monthly fee for a new insurance policy that you want to take out. In this situation, you can also simulate the price you would be paying with other insurers. This way, when approaching your insurer, you will have reference values to make a counter.
However, many insurers don’t even need the customer to try to enter into negotiations. This is because many entities already have a policy to benefit customers who wish to remain loyal and subscribe to more products. Having said that, it is advisable to first listen to your insurer’s proposal, as you do not need to make an immediate decision.
6 – And if one day someone wants to leave family health insurance, they can get a good monthly fee on a new policy
This last advantage comes hand in hand with others that depend on your status as a customer. However, in this case, the difference lies in the possibility of losing a client, who the younger they are, the more appealing they are to the insurer. This is because a young customer, between 25 and 30 years old, who does not have serious health problems, turns out to be an ideal customer for health insurance.
A practical example: Imagine that you had your child included in a family health insurance, but he left home. At this moment there is a possibility that he will go to another insurance company. In these cases, if you approach your insurance company about the conditions it can offer your child, it is likely that your child will get a more advantageous rate than others practiced on the market.
What to consider before taking out family health insurance
Although there are several advantages to taking out family health insurance as we have seen so far, there are also some factors that you should be aware of before signing a new contract. As a rule, when you want to include several family members in the same policy, you may encounter some obstacles, especially if you want to include a person over 55 years old.
In most insurers, between the ages of 55 and 65, permanence limits begin to be established. Stay limits refer to the age limit at which a person can benefit from insurance conditions and coverage. Imagine that you would like to add your parents, but they are over 65 years old. In many insurers there will be several obstacles or the monthly fee can skyrocket exponentially if you want to include them in your policy.
Therefore, if you are thinking of taking out a new policy that encompasses several members of your family, it is best to find out well about all the conditions in advance. You should look at the number of members you can include, compare the discounts at each insurer according to the number of people, see up to what age subscription is possible and what are the limits of permanence.
Finally, compare the coverages offered, review the limits of the plafonds, and analyze the grace period for each type of coverage. Don’t forget to do several simulations to see the best option for you and don’t be afraid to try to renegotiate the conditions offered.