A family floater policy covers more than one member of a family for a fixed sum assured against the payment of a single annual premium. Each member covered in the family health insurance plan can make a claim, and multiple claims can be entertained in a year. Such plans work on the assumption that the likelihood of all the members of a family falling ill during a single policy year is low.
Who can be covered in a family floater health insurance in India?
The proposer, his/her spouse, and children (usually up to 4) are covered. Some policies also allow the addition of parents and in-laws for an additional payment of premium.
Here are a few things you must keep in mind while choosing a family floater health insurance policy.
Basic coverage: Do compare the basic coverage offered by different insurance providers. Remember to look at the list of exclusions, and the policy’s stance towards pre-existing diseases.
Flexibility to increase the sum assured: With the costs of health care hitting the roof, choose a provider who allows you the flexibility to raise your sum assured as per your requirements.
Co-payments: Some providers may require you to pay a pre-determined percentage of expenses incurred. This reduces the premium you have to pay but may come as a blow in times of big medical emergencies. Way your options carefully before committing to the Health insurance provider.
A network of hospitals: Every health insurance provider would have a list of network hospitals mentioned. Compare the lists carefully and make sure to have some reputed names in the list of the provider you finally decide to go ahead with.
Here are some key facts that you need to be aware of while choosing a Family Floater Health insurance plan:
New members can be added to the policy easily by paying a small additional premium
The policy expires when the oldest member covered crosses the age limit specified in the policy
Adding senior citizen parents to such plans is unwise as the premium then rises significantly
Children aren’t covered once they become majors
To prove eligibility for most family floater health insurance plans, members have to undergo a medical exam
Additional riders, such as critical illnesses cover, can be bought for additional protection
Benefits of family floater plans:
It's Affordable: You can cover your entire family by opting for a single health insurance policy. Along with providing convenience, Family floater plans prove to be much more economical when compared to individual health insurance plan.
Get Tax benefit: You can avail tax benefit on all the premiums paid for family health insurance plan under the Section 80D of the Income Tax Act.
Restore Exhausted Coverage: Several health insurance providers offering family health insurance plans offer a special benefit called restoring benefit, which helps restore full coverage once exhausted during the policy period. However, it is applicable only for unrelated claims.
Enjoy larger Sum Insured: The sum assured offered by Individual Health Insurance policies are usually much lower than that offered by the family floater plans. Also, in family floater plans, the larger sum is available to every member of the family, and not just to one person, making it more economical. Lastly, the overall cost incurred in family floater plans is much less than individual plans.
Add a new member: You can add children or any other family member easily in the same family floater plan.
How to buy a new family floater health insurance in India?
If you already have a policy and want to add your family members to it, consult your provider. If you are new to insurance, it makes sense to go online, compare the different plans available and then make a choice.