Family Insurance is an insurance coverage for the entire family. This insurance comes usually in the package as Medical Insurance or Life Insurance. Most employers give this as one of the benefits to their employees. The premiums are usually paid for by the employers and beneficiaries could extend to the wife and children, some with no regard to the number and some limit up to the 3rd child or to minors only.

Coverage for insurance like this may include but not limited to consultation fees, room and board in hospital when there’s admission, limited surgical fee, doctor’s fee, laboratory fees and post operation care. Comprehensive coverage may also include but not limited to childbirth, common sicknesses, surgical procedures, dental, medicines and outpatient consultations, home protection, auto insurance, disability and retirement benefits. If it is company provided healthcare, the insured is part of a group health insurance which has uniform benefits to all employees except may be for the executives and officers which has more coverage. This kind of insurance also expires when employment is terminated, although some insurance companies offer extension of coverage if insured is willing to continue paying the premiums.

Monthly or Annual premium is usually based on the age of the principal beneficiary at the time the insurance was contracted. Premiums for wife and children rely solely on the principal. Most of healthcare plans do not base their premiums on the health condition of the insured as compared to life insurances where the standard rating is given to people with clean bill of health only and sub-standard rating for those with pre-existing condition which means additional premium.
If the Family Insurance is pure protection only, then the family gets the Face Amount upon demise of the insured, provided that there is no outstanding loan to consider. Some of company sponsored family insurance for life of the employee is attached with educational benefits for the children and this takes effect when the insured dies. These are usually part of the benefit packages a company offers when hiring a new employee.

If a family is initiating to get a Family Insurance, look closely at the contestable clauses like age limit of children to avail of benefits, paying period, coverage details, payment scheme whether it is reimbursement type or deductible from total bill upon check out from hospital, scrutinize the list of accredited hospitals, its location and physicians, and most crucial are the illnesses that are covered and those that may be considered pre-existing. It is important to take note of the coverage especially when it comes to illnesses as young children are more at risk of being in and out of hospital than the older ones.

Minors are not advised to be primary beneficiaries as it may pose problem during time of claim since they are not yet legally bound to sign documents; additional requirements may be asked from claimants and may incur a lot of difficulties as Guardianship may require court order and processing may take up so much time. Always read the fine print and probe all areas as the money you pay as premium could be the same money to save your life and that of your loved ones.