A medical emergency 🆘 can fall upon anyone, irrespective of age and other factors. So, it is imperative to cover everyone in your family under health insurance plans to ensure that you have the monetary aspect covered when someone needs medical attention. The biggest perk of having group health insurance is that it covers a group of people, which is not the case with individual insurance plans. But the latter also offers a series of perks, making it quite popular.
So what do you do when you like them both but can only get one? You choose family floater health insurance plans!
This article details everything you need to know about family floater health insurance plans.
What Are Family Floater Health Insurance Plans?
Also known as family health insurance plans, family floater health insurance is a policy that covers all the members of a household. It is a single plan covering your spouse, dependent children, and parents. These offerings are highly customizable and can cater to your family’s health-related needs, such as critical illness cover, pre-, and post-hospitalization expenses, routine check-ups, etc.
Essentially, a family floater health insurance plan is an individual policy but with some characteristics of group medical insurance.
How Does a Family Floater Health Insurance Plan Work?
In today’s uncertain times, families in India are often worried about the excessive financial pressure they may experience from engaging in health-related uncertainties. So, they look for a family floater plan that can enable a cover for all the members cost-efficiently.
Family floater plans offer a fixed insurance cover for all the people covered under it. For example, if you avail a family floater plan of ₹30 lakhs for a year, all those covered could claim a reimbursement toward health and other allowed expenses to the tune of ₹30 lakh. But if the threshold is broken, say you had to spend ₹50 lakh for your father’s knee surgery, the plan would only reimburse the maximum limit, i.e., ₹30 lakh, and the other insured individuals cannot claim anything after that throughout the policy’s period.
How Do They Differ from Individual Insurance Policies?
As the name suggests, an individual insurance policy covers only a single individual, and you will need multiple plans to get everyone in your family covered. In contrast, a family floater plan works more like group insurance and covers the entire family under the same policy.
Unlike an individual plan, with family floater group health insurance, you no longer have to worry about multiple due dates for premium payments, additional rider needs for each, and claim processes. Instead, you can have a single policy that enables easier tracking and seamless claim filing.
Who Should Invest in a Family Floater Health Insurance?
A family floater medicare plan is more like an umbrella ☂️ protecting the entire family. So, it is ideal for someone who is married and has children. Or it is perfect for individuals who want to provide cost-efficient protection for their parents (usually senior citizens).
What Is Not Covered Under Family Floater Health Insurance?
Here is what is not covered or may cost a substantial premium outflow under a family floater plan:
- Admission of a senior citizen can increase the premium outflow substantially owing to a higher health risk quotient associated with them;
- Most brands offering these plans do not cover childbirth. So, you will need to carefully skim through their product documentation to understand if they offer it or not;
- Some specific pre-existing diseases are not covered, and there can be an exclusion period.
Advantages of Family Floater Health Insurance
Here is why you should opt for a family floater health plan:
- Cost-effective solution
An individual insurance policy for all your family members would cost a bomb. Group insurance may not have all the features you need. The family floater options form a balance where they look to cater to all family members by offering a sum assured that can be shared. Even in multiple illnesses, the premium doesn’t jack up as much as with individual insurance.
- Replenishing sum assured is easy
These policies have a top-up facility that allows you to restore 100% of the sum assured with ease. It ensures that you have your loved ones covered irrespective of the circumstances.
- A plethora of cashless options
Floater options come with strategic relationships with a plethora of network hospitals 🏥. It enables policyholders to get treated without having to worry about lofty bills.
- Tax benefits
Under Section 80D of Chapter VIA of the Income Tax Act, 1961, policyholders can claim up to ₹15,000 💸 as a deduction for health insurance premium payment for self, spouse, and children. In addition, they can claim up to ₹20,000 💸 for insurance premium payments for parents.
Family floater health insurance policies are a terrific way to have cover for your family, especially during these uncertain times. It ensures complete protection while optimizing the cost aspect. In addition, it also offers a wide range of varieties to enable you to choose the best one for your loved ones.