How Does the Monthly Premium Differ Across Family Health Plans?
Family health insurance or family floater plans provide financial protection against unexpected medical expenses by covering all family members under a single policy.
Although IRDAI allows health premiums to be paid monthly, most insurers do not provide this facility due to operational inefficiencies, such as tracking payments or increased administrative costs. Insurers that do provide such options offer them at a higher cost or through fintech providers/credit cards at exorbitant interest rates.
Introduction
Choosing the right health insurance for your family involves more than just finding low premiums. It’s about striking a balance between cost, coverage, and convenience. At Ditto, we simplify these decisions to help you pick what truly fits your family’s needs.
This guide will help you understand:
- Best health plans for your family
- Monthly premium range for family floaters
- Which Premium Payment Mode Helps You Save the Most?
Points to be Noted:
If you pay your premiums monthly and raise a claim during the policy term, the pending monthly premium payments for the year will immediately become due and be deducted from your claim amount.
For example, if your monthly premium is ₹2,500 and you raise a claim of ₹1,00,000 after six months, ₹15,000 (₹2,500 × 6) will be deducted for pending premiums. So, your final payout will be ₹85,000, and you’ll need to cover the remaining amount yourself.
Did you know? Choosing the wrong insurance plan could cost you a lot in the long run! But our IRDAI-certified advisors offer free consultations to help you pick the right policy! Book a call now – no pressure, no spam, just honest insurance advice.
What Are the Best Health Insurance Plans for Families in 2025?
Before we discuss the list, here’s how we decide what plans to feature.
At Ditto, every health plan goes through our six-point evaluation framework. It doesn’t mean these are the only good plans, but that they stand out after being scored across all six pillars.
You can learn more about how we evaluate health insurance plans here.
P.S. - *Can be reduced with add-ons; **Can be increased with an add-on
How Much Do Monthly Family Health Insurance Premiums Differ?
Let’s take a quick look at the premium range for different family compositions, opting for a sum insured of ₹15L, residing in Delhi:
Take Note:
You can lower your monthly premium with a few smart moves. Choose a higher deductible and a multi-year plan. You can also skip unnecessary add-ons and stay healthy to save more on premiums.
Which Factors Affect Your Monthly Premium?
Age and Health
Coverage and Add-ons
Location
Lifestyle
Ditto's Take on Premium Payment Frequency
At Ditto, we recommend paying premiums on an annual basis. It helps you save more over time. Yearly payments also reduce the risk of missing due dates or lapsing your policy.
Paying annually can help you save 5–15% on premiums and protect you from inflation. Monthly payments, however, may cost around 5% more because they require the insurer to increase its administrative work. If your income is steady, choosing an annual & multi-year premium payment mode is the cost-effective option in the long run.
For example, a couple aged 32 and 31 buying the Star Super Star family plan pays around ₹1,707 per month. However, if they choose to pay annually, the premium is about ₹19,717. Paying once a year can simplify payments, and you need not pay ₹767 extra.
If paying a lump sum is difficult, consider using EMIs. Choose your insurer’s installment option instead of credit-card EMIs, check policy terms for deductions, and make sure to repay within the grace period.
Alternatively, you can invest in SIPs or RDs. The interest you earn from them can be used to pay your annual insurance premiums, which makes payments easier and more manageable.
Why Talk to Ditto for Your Health Insurance?
At Ditto, we’ve assisted over 8,00,000 customers with choosing the right insurance policy. Why customers like Arun below love us:
✅No-Spam & No Salesmen
✅Rated 4.9/5 on Google Reviews by 5,000+ happy customers
✅Backed by Zerodha
✅100% Free Consultation
Final Thoughts
It’s always recommended to focus on long-term value rather than short-term savings. That is why we recommend selecting a payment mode that suits your financial situation, which ensures your family’s health coverage remains stress-free.
Still unsure about premium payments? Book a free call with us and let our experts guide you in choosing the correct health plan and premium mode.
FAQs
Can I pay my family's health insurance premium monthly?
Very few insurers offer this option, and that too at higher costs.
As the GST rate is 0%, will my premium decrease by 18%?
Since GST has been removed, insurers have passed on the full 18% benefit. But in the long run, insurers may revisit pricing to offset the loss in input tax credits.
Is a family floater policy cheaper than individual plans?
Usually, yes. For younger families without significant health issues, family floaters offer broader coverage at a lower overall cost because of the shared SI.
What if I miss a monthly premium payment?
Insurers generally offer a 15 day grace period. Missing payments beyond that could result in your policy lapsing with no scope of revival.
Does paying annually offer better value?
Yes. Annual payments often include 5–10% discounts, lower administrative costs, and ensure uninterrupted coverage throughout the year.
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