Onsurity Editorial
December 17, 2024
15 min read
322Table of Contents
Family Health Insurance Plans
It’s a harsh reality: one serious illness can wipe out a lifetime of savings. In India, 62% of healthcare costs are borne out of pocket. That’s right, out of pocket. A staggering 7.9% of an average Indian household’s annual income goes towards healthcare.
Can you imagine the burden?
- 70% of Indian households have faced unexpected medical bills that drained their savings.
- 23% of hospitalisations are financed through loans.
- 82% of urban households lack health insurance.
- A shocking 69% of maternity claims are for C-sections.
It’s time to wake up. Health is wealth, but wealth without health is worthless.
In 2022-23, health insurance premiums surged by 23%*. Also according to the ACKO Health Index 2024, the average increase in claim size in India was 11.35%, indicating a staggering rise in healthcare costs due to medical inflation. This is a clear sign of the times: healthcare costs are skyrocketing and protecting your family’s future with a robust family health insurance plan is your shield.
This guide will help you choose the best family health insurance plan for 2025. We’ll break down the top 10 plans, their features, pros, and cons. With this knowledge, you can make an informed decision and safeguard your family’s financial well-being.
*Source: IRDAI Annual Report 2022-23
Top 10 Family Health Insurance Plans: A Comparative Table
| Insurance Company | Plan Name | Sum Insured | Premium Range (INR) | Key Features | Waiting Period | Network Hospitals | Claim Settlement Ratio |
| Onsurity | HealthFam & FamPro | ₹ 2 – 10 lakhs | ₹ 3,300 – 31,000 (Members only prices)*Between age of 0 – 60 years |
Maternity coverage, Cataract cover, No Co-pay/Deductible, No initial waiting period, No waiting period for specific illness, no waiting period for Covid-19, No waiting period for Pre-existing diseases, accidental coverage from 3 lakhs to 15 lakhs | 0-2 years (depend on the type of plan variant) | 10,000+ | 99% |
| Star Health | Family Health Optima | ₹ 3 – 25 lakhs | ₹ 12,000 – 38,000 | Coverage for daycare procedures | 3 years | 9,800+ | 96% |
| HDFC ERGO | Optima Restore | ₹ 5 – 50 lakhs | ₹ 18,000 – 50,000 | Restoration of the sum insured | 3 years | 10,000+ | 93% |
| Max Bupa | Health Companion | ₹ 5 – 1 crore | ₹ 20,000 – 65,000 | No room rent limits | 4 years | 6,500+ | 97% |
| ICICI Lombard | Complete Health | ₹ 3 – 50 lakhs | ₹ 17,000 – 48,000 | Lifelong renewal, wellness offers | 2 years | 5,000+ | 95% |
| Apollo Munich | Easy Health Family | ₹ 3 – 20 lakhs | ₹ 15,000 – 40,000 | Maternity benefits | 3 years | 4,500+ | 92% |
| Religare Health | Care Plan | ₹ 5 – 6 crores | ₹ 22,000 – 75,000 | Worldwide coverage options | 4 years | 8,000+ | 91% |
| Tata AIG | MediCare Premier | ₹ 3 – 30 lakhs | ₹ 18,000 – 52,000 | Optional global cover | 2 years | 9,000+ | 96% |
| Bajaj Allianz | Family Floater Plan | ₹ 5 – 50 lakhs | ₹ 15,000 – 47,000 | Cashless facility in 6,500+ hospitals | 3 years | 6,500+ | 94% |
| New India Assurance | Family Mediclaim Plan | ₹ 2 – 15 lakhs | ₹ 12,000 – 30,000 | Government-backed reliability | 4 years | 5,200+ | 90% |
#Disclaimer: The information provided in this table is for educational and informational purposes only. The details, including plan features, premiums, and other specifications, are subject to change at any time by the respective insurance companies. We do not guarantee the accuracy or completeness of the information. For the most up-to-date details and terms, please contact the respective insurance provider directly. This content is not intended to replace professional advice or serve as a substitute for detailed plan consultation.
Also read: Top 10 Health Insurance Companies in India
10 Best Family Health Insurance Plans for 2025
1. Onsurity - HealthFam & FamPro
Coverage Details: Onsurity offers comprehensive coverage for family health insurance plans, including maternity coverage, cataract coverage, and accidental coverage.
Sum Insured Range: ₹2 – ₹10 lakhs.
Unique Benefits: No co-pay/deductible, specific illnesses, Covid-19, or initial coverage.
Pros:
- Instant coverage with zero waiting period for most conditions.
- Extensive network of 10,000+ hospitals.
- High claim settlement ratio of 99%.
- Monthly-subscription model
- Dedicated Claims Support
- Easy real-time tracking for the reimbursement claim process
- Various wellness programs
- Discounts on preventive health check-ups
- Monthly free doctor consultations
- Doorstep medicine delivery
- Day care procedures are covered
Cons:
- Limited sum insured range compared to competitors but with various advantages and easy on pocket premiums.
Why It’s Good for Families:
- Eliminates waiting periods, making it ideal for families needing immediate coverage.
- Maternity benefits cater specifically to growing families.
- Claims buddy will be continuously with you from the time of hospitalisation till discharge guiding you at each and every step.
2. Star Health - Family Health Optima
Coverage Details: Comprehensive family floater plan with daycare procedures coverage.
Sum Insured Range: ₹3 – ₹25 lakhs.
Unique Benefits: Affordable premiums ranging from ₹12,000 – ₹38,000 and extensive hospital network (9,800+).
Pros:
- Economical premium range for mid-sized families.
- High claim settlement ratio of 96%.
- Covers daycare procedures, which are often excluded in other plans.
Cons:
- Three-year waiting period for pre-existing diseases.
- Limited to a specific range of treatments.
Why It’s Good for Families:
Affordable coverage for medium to large families with flexible options for daycare treatments.
3. HDFC ERGO - Optima Restore
Coverage Details: Offers restoration of the sum insured once exhausted during the policy year.
Sum Insured Range: ₹5 – ₹50 lakhs.
Unique Benefits: Restores the coverage amount without extra charges and includes over 10,000 network hospitals.
Pros:
- Comprehensive high coverage up to ₹50 lakhs.
- Restoration benefit ensures families don’t face coverage shortages.
- High claim settlement ratio of 93%.
Cons:
- A Higher premium range (₹18,000 – ₹50,000) might not suit small families with limited budgets.
- Three-year waiting period for pre-existing diseases.
Why It’s Good for Families:
Restoration benefits are excellent for families with high medical needs or recurrent claims.
4. Max Bupa - Health Companion
Coverage Details: Offers no room rent limits and coverage up to ₹1 crore.
Sum Insured Range: ₹5 – ₹1 crore.
Unique Benefits: Ideal for high-coverage needs and includes wellness benefits.
Pros:
- High sum insured up to ₹1 crore.
- No room rent limits offer freedom of choice in hospitals.
- High claim settlement ratio of 97%.
Cons:
- Four-year waiting period for pre-existing conditions.
- Limited network of 6,500 hospitals compared to competitors.
Why It’s Good for Families:
Suitable for families seeking premium healthcare options without room rent restrictions.
5. ICICI Lombard - Complete Health
Coverage Details: Covers up to ₹50 lakhs with wellness benefits and lifelong renewal options.
Sum Insured Range: ₹3 – ₹50 lakhs.
Unique Benefits: Lifelong policy renewal ensures uninterrupted coverage.
Pros:
- Wellness benefits and preventive care features.
- High claim settlement ratio of 95%.
- Mid-range premium affordability.
Cons:
- Smaller network of hospitals (5,000+).
- Limited innovative features compared to competitors.
Why It’s Good for Families:
Lifelong renewal is ideal for families who want a consistent policy over generations.
6. Apollo Munich - Easy Health Family
Coverage Details: Includes maternity benefits and basic hospitalization coverage.
Sum Insured Range: ₹3 – ₹20 lakhs.
Unique Benefits: Maternity coverage and affordable premiums make it attractive for new families.
Pros:
- Maternity benefits are highly useful for young families.
- Affordable premiums in the ₹15,000 – ₹40,000 range.
Cons:
- Limited hospital network of 4,500+.
- Three-year waiting period for pre-existing conditions.
Why It’s Good for Families:
Specifically designed for families planning to expand, with maternity benefits as a key highlight.
7. Religare Health - Care Plan
Coverage Details: Comprehensive worldwide coverage for medical expenses.
Sum Insured Range: ₹5 – ₹6 crores.
Unique Benefits: Global medical coverage for advanced treatments abroad.
Pros:
- High sum insured, suitable for international treatments.
- Coverage options for a wide range of critical illnesses.
Cons:
- Higher premium range (₹22,000 – ₹75,000) may not suit all budgets.
- Four-year waiting period for pre-existing diseases.
Why It’s Good for Families:
Ideal for families seeking global healthcare access and robust high-value coverage.
8. Tata AIG - MediCare Premier
Coverage Details: Optional global coverage and a wide range of benefits.
Sum Insured Range: ₹3 – ₹30 lakhs.
Unique Benefits: Focus on flexibility with optional add-ons.
Pros:
- High claim settlement ratio of 96%.
- Network of 9,000+ hospitals ensures accessibility.
Cons:
- Two-year waiting period for pre-existing conditions.
- Slightly higher premiums compared to similar plans.
Why It’s Good for Families:
Suitable for families looking for customization and optional global coverage.
9. Bajaj Allianz - Family Floater Plan
Coverage Details: Comprehensive family floater plan with cashless facilities.
Sum Insured Range: ₹5 – ₹50 lakhs.
Unique Benefits: Cashless treatment in over 6,500 hospitals.
Pros:
- Affordable premiums and extensive coverage.
- High claim settlement ratio of 94%.
Cons:
- Three-year waiting period for pre-existing conditions.
- Limited innovative features.
Why It’s Good for Families: Cashless treatment makes it convenient for families during emergencies.
10. New India Assurance - Family Mediclaim Plan
Coverage Details: Government-backed reliability with basic hospitalization coverage.
Sum Insured Range: ₹2 – ₹15 lakhs.
Unique Benefits: Economical premium rates and trusted by many due to government association.
Pros:
- Reliable and stable plan due to government backing.
- Affordable premiums (₹12,000 – ₹30,000).
Cons:
- Four-year waiting period for pre-existing conditions.
- Smaller network of hospitals (5,200+).
Why It’s Good for Families: Suitable for families seeking a no-frills, dependable plan with basic benefits.
Benefits of Buying Health Insurance Plans for Family
1. Comprehensive Financial Protection
Why It Matters: A single hospitalisation can drain savings for a middle-class family. Health insurance ensures financial protection against expensive medical treatments.
Example: Plans like Onsurity Health & Fam Pro, or Star Health Family Health Optima provide coverage for all family members under one premium, reducing individual financial burden.
2. Affordable Access to Quality Healthcare
Why It Matters: Rising medical costs often make quality healthcare inaccessible for middle-income groups. Health insurance offers cashless treatments at network hospitals, ensuring timely and affordable care.
Example: Plans like HDFC ERGO Optima Restore with a vast network of hospitals make it easier for families to access top-tier facilities without upfront payments.
3. Coverage for Entire Family
Why It Matters: A family floater plan offers coverage for the entire family, including spouse, children, and dependent parents, under a single policy. This is cost-effective and simplifies management.
Example: Max Bupa Health Companion covers high medical expenses for large families, including elderly parents.
4. Tax Benefits
Why It Matters: Under Section 80D of the Income Tax Act, premiums paid for health insurance are tax-deductible, reducing taxable income and saving money for middle-class households.
Example: Paying a ₹20,000 premium can reduce taxable income and provide dual financial benefits i.e. protection and tax savings.
5. Preparedness for Medical Emergencies
Why It Matters: Middle-class families often lack emergency savings for sudden health issues. Health insurance ensures they are prepared for emergencies like accidents or critical illnesses.
Example: Plans like Onsurity HealthFam & FamPro, with no waiting periods, offer immediate coverage for emergencies.
6. Peace of Mind
Why It Matters: Constant worry about potential medical expenses can strain families mentally and emotionally. Insurance provides reassurance and stability.
Example: High claim settlement ratios (like 99% for Onsurity) assure families that claims will be honored when needed.
7. Special Benefits for Family Needs
Why It Matters: Features like maternity coverage, daycare procedures, and wellness benefits cater to the specific needs of middle-class families, such as growing children or elderly care.
Example: Apollo Munich Easy Health Family provides maternity coverage, while Religare Care Plan includes worldwide coverage for critical treatments.
8. Protection Against Rising Medical Inflation
Why It Matters: Medical costs are rising at an alarming rate, which can be unaffordable for the middle class. Health insurance locks in current rates and shields families from future price hikes.
Example: Plans with high sum insured, like Religare Health Care Plan (up to ₹6 crores), safeguard against inflation for high-cost treatments.
9. Customisable Plans for Budget Constraints
Why It Matters: Many middle-class families may have a limited budget for insurance. Insurers offer flexible plans with add-ons to fit financial constraints.
Example: Tata AIG MediCare Premier allows optional global coverage, enabling families to choose benefits based on their affordability.
10. Preventive Health Benefits
Why It Matters: Regular health check-ups and wellness benefits help in the early detection of illnesses, saving future costs and ensuring family well-being.
Example: ICICI Lombard Complete Health Plan includes wellness offers, encouraging healthier lifestyles.
What to Consider When Buying a Family Health Insurance Plan
1. Sum Insured
Why It Matters: The sum insured should be adequate to cover the healthcare needs of all family members. Consider medical inflation and potential costs for hospitalisation, daycare procedures, and surgeries.
Tip: For middle-class families, a plan with at least ₹1 – ₹10 lakhs coverage is ideal, such as Onsurity Health&FamPro, Star Health Family Health Optima or HDFC ERGO Optima Restore.
2. Family Members Covered
Why It Matters: Ensure the plan includes all dependents, such as spouses, children, and elderly parents. Some plans may have age limits for dependents.
Tip: Onsurity, Bajaj Allianz Family Floater Plan and Max Bupa Health Companion are flexible with family inclusions.
3. Premium Affordability
Why It Matters: Choose a plan with a premium that fits your budget while offering sufficient coverage. Avoid selecting the cheapest plan as it may compromise benefits.
Tip: Compare plans like New India Assurance Family Mediclaim Plan (affordable premiums) with others to find the best balance of cost and coverage.
4. Claim Settlement Ratio (CSR)
Why It Matters: A high CSR indicates the insurer’s reliability in honoring claims. Look for plans with a CSR above 90%.
Tip: Plans from insurers like Onsurity (99%) and Star Health (96%) are trustworthy choices.
5. Network Hospitals
Why It Matters: A wide network of empaneled hospitals ensures you can avail of cashless treatment easily in your area.
Tip: Choose plans with an extensive network, such as Onsurity, HDFC ERGO Optima Restore with over 10,000 network hospitals.
6. Waiting Period for Pre-existing Conditions
Why It Matters: Many plans have a waiting period for pre-existing diseases or maternity benefits. If you or a family member has pre-existing conditions, look for plans with shorter waiting periods.
Tip: Onsurity HealthFam has no waiting period for pre-existing conditions, while most others have 2-4 years.
7. Maternity and Newborn Coverage
Why It Matters: For young families planning children, a plan that covers maternity expenses and newborn care is essential.
Tip: Apollo Munich Easy Health Family offers maternity benefits, making it suitable for growing families.
8. Additional Benefits and Features
Why It Matters: Look for value-added benefits like restoration of the sum insured, daycare procedure coverage, wellness rewards, and OPD cover.
Tip: HDFC ERGO Optima Restore provides automatic restoration of the sum insured, which is a significant benefit for recurring claims.
9. Exclusions and Limitations
Why It Matters: Read the policy document carefully to understand what is excluded, such as specific treatments, alternative therapies, or high-value claims for certain conditions.
Tip: Compare exclusions across plans like ICICI Lombard Complete Health or Religare Health Care Plan to avoid surprises during claims.
10. Co-payments and Deductibles
Why It Matters: Co-payments and deductibles require you to bear a portion of the treatment cost. Plans without co-payments are more beneficial for middle-class families.
Tip: Onsurity HealthFam does not have co-payments or deductibles, making it a family-friendly option.
11. Renewability
Why It Matters: Opt for lifelong renewable plans to ensure continuous coverage without the need for new policies as you age.
Tip: ICICI Lombard Complete Health offers lifelong renewability, which is crucial for long-term planning.
12. Medical Inflation and Future Needs
Why It Matters: Healthcare costs rise over time, so choose a plan with a sum insured that can accommodate inflation and future medical needs.
Tip: Plans like Religare Health Care Plan with coverage up to ₹6 crores provide a safety net against medical inflation.
13. Add-ons and Riders
Why It Matters: Additional riders such as critical illness cover, global coverage, or personal accident cover can enhance your policy.
Tip: Tata AIG MediCare Premier allows optional global coverage, adding flexibility to the plan.
14. Ease of Claim Process
Why It Matters: A hassle-free and quick claim process ensures peace of mind during emergencies. Research reviews and customer experiences for the insurer’s claim settlement process.
Tip: Insurers like Star Health and Max Bupa are known for their efficient claim processes.
15. Customer Support
Why It Matters: Prompt and supportive customer service can make a significant difference when dealing with claims or policy queries.
Tip: Insurers with dedicated claims buddy and 24/7 support, such as Onsurity, are reliable.
Suggested read: Top 5 Group Medical Insurance for Family
How to Choose the Right Family Health Insurance Plan
1. Assess your Family’s Healthcare Needs
- Evaluate healthcare requirements based on age, lifestyle, and existing health conditions.
- Consider special coverage for elderly parents (e.g., pre-existing conditions).
- Ensure maternity and newborn coverage if you’re planning for children.
Tip: Choose plans offering broad coverage options for maternity and pre-existing conditions.
2. Opt for Adequate Sum Insured
- Choose a sum insured amount that matches your family size and healthcare needs.
- Start with coverage of ₹1–₹10 lakhs for an average family.
Tip: If your budget allows, go for a higher sum insured to cover rising healthcare costs comprehensively or you can take two different plans from different companies.
3. Balance Coverage and Affordability
- Compare premiums of similar plans to ensure value for money.
- Use online tools to assess the affordability of different plans.
Tip: Choose mid-range plans for a better mix of coverage and cost.
4. Focus on Short or Zero Waiting Periods
- heck the waiting period for coverage of pre-existing conditions, maternity, and specific ailments.
- Opt for plans with minimal or Zero waiting periods to access benefits faster.
Tip: Look for plans that minimise or eliminate waiting periods for important health conditions.
5. Choose Plans with Extensive Network Hospitals
- Verify if network hospitals are easily accessible from your location.
- Prefer plans with a wide network, especially in major cities for cashless treatment benefits.
Tip: Plans with a large number of network hospitals are ideal for ensuring access to quality care during emergencies.
6. Look for High Claim Settlement Ratios (CSR)
- Aim for insurers with a CSR of at least 95% to ensure smoother claim processing.
- Read customer reviews to understand the claim experience.
Tip: High CSR indicates a greater likelihood of claims being settled without hassle.
7. Prioritise No Co-payment or Deductibles
- Choose plans that do not include co-payment to avoid bearing unexpected costs during claims.
- Ensure there are no hidden deductibles to avoid surprise expenses.
Tip: Plans without co-payment or deductibles are more predictable and financially safer.
8. Leverage Tax Benefits
- Calculate the potential tax savings under Section 80D of the Income Tax Act.
- Consider tax deductions when budgeting for a health insurance plan.
Tip: If you insure senior citizens, you can save up to ₹50,000 in tax deductions.
9. Choose Add-ons Based on Family Needs
- Consider add-ons like critical illness cover, personal accident coverage, or global treatment.
- Select add-ons based on your family’s health risk profile.
- Addition of siblings to your plan at an extra cost as provided by Onsurity.
Tip: Frequent travelers may find global coverage add-ons particularly beneficial.
10. Review Policy Exclusions
- Carefully review policy exclusions to avoid unpleasant surprises during claims.
- Compare exclusions across different policies to choose one with minimal limitations.
Tip: If alternative treatments like Ayurveda are important to your family, ensure the insurer covers them.
11. Room Rent Limit
- Carefully review the policy exclusions to avoid unexpected issues related to hospital room rent during claims.
- Compare exclusions across different policies to choose one with minimal limitations.
Tip: If alternative treatments like Ayurveda are important to your family, ensure the insurer covers them.
12. Treatment Capping
- Some insurers have caps on specific treatments, such as cataract surgery or joint replacement, which can limit reimbursement.
- Check for any caps on high-cost treatments and compare across different policies. Avoid plans with restrictive capping if your family is prone to specific conditions.
Tip: Plans that do not impose caps on essential treatments provide more comprehensive coverage and help avoid out-of-pocket expenses.
13. No Claim Bonus (NCB)
- NCB is awarded for not making any claims during a policy year, which can lead to an increase in the sum insured.
- Choose plans with significant NCB benefits (e.g., 10%-50% increase per claim-free year).
Tip: Confirm if the NCB benefit applies cumulatively to all family members for long-term advantages.
Quick read: Group Health Insurance for Employees
Conclusion
The rising cost of healthcare is a wake-up call that you can’t afford to ignore. With 62% of healthcare expenses being paid out of pocket in India and 82% of urban households lacking health insurance, it’s evident that financial security in the face of medical emergencies is a luxury many cannot afford. This comprehensive guide on the top 10 family health insurance plans for 2025 is a step towards empowering you to make an informed decision for your family.
Selecting the right health insurance plan isn’t just about comparing premiums or looking at the claim settlement ratio. It’s about ensuring that your family is shielded from the devastating impact of medical emergencies. Remember, health is wealth, but protecting your health with the right insurance is the smartest investment you can make. Compare plans, consult with an insurance advisor, and take the next step towards financial peace of mind.
If you’re looking for a seamless and comprehensive health insurance solution, Onsurity’s HealthFam & FamPro offers an array of wellness benefits, cashless treatment across 10,000+ hospitals, and no waiting periods for most conditions.
Ready to take the next step? Onsurity is here to guide you every step of the way – from choosing a plan to guiding you through a claim, every breath of the way.
