Most people rely only on group health insurance plans offered by their employers. However, this is inadequate to cover constantly rising healthcare costs.
You may purchase an individual plan with a smaller sum insured (SI) to slightly increase the coverage. However, you may not cover your children or dependent parents to reduce the total premium. This is when a family floater insurance policy can prove valuable.
Family floater plans – An overview
One way to insure multiple family members is to purchase a family floater health insurance policy. It is a single umbrella policy that covers you and your family. In the case of hospitalization, the SI is available for all the covered members. Such plans include self, spouse, children (up to 25 years), dependent parents, and in-laws.
The primary assumption of family floater plans is that the possibility of every member being hospitalized simultaneously is almost impossible. Generally, the premium for a family health insurance policy depends on the age of the eldest member.
Advantages of a family floater policy over an individual plan
- Affordable
When you avail of individual plans for each member, the total premium is higher. In comparison, the premium paid for a family floater cover is almost 25% lower than the amount paid on an individual policy,
- Higher coverage
If you buy individual health insurance plans for a higher SI, the total premium will be significant. In comparison, the premium for a higher SI under a family floater policy is lesser. This means each family member can get higher coverage at an affordable cost.
- Convenient
When you have multiple individual plans, you need to manage them separately and ensure timely payments of premiums to avoid discontinuation. With health insurance plans for family, you need to handle only one policy, which is simpler.
- Tax benefits
The premium paid on the family floater medical insurance policy is eligible for a tax deduction under Section 80D of the Income Tax (IT) Act, 1961.
Features of family floater plans
Insurers offer beneficial features under a family health plan, which include:
- Chronic management program to improve the quality of life in case of ailments like diabetes, hypertension, asthma, and high cholesterol
- Global emergency assistance
- Coverage for more than 500 daycare procedures
- Cashless health insurance within network hospitals
- Versatility to choose room and treatment zone
- Reload of up to 100% of the SI
If you want to buy family floater insurance, consider the age and health conditions of all the members who will be covered under the policy. Additionally, it is important you choose a mediclaim policy that offers lifetime renewability to ensure coverage is available even when you are older.
