In India, many households still have a single earning member with many dependents. In such houses, a medical emergency can dent the family’s savings and even result in huge loans. Hence, getting a health insurance policy that offers coverage for all family members is essential.
To bring everyone under health insurance coverage, you can opt for an individual health insurance plan for each family member. But the cumulative premium amount can get difficult to manage. So as an alternative, many people opt for a family floater health insurance plan, where a single policy offers coverage for all members of the family.
Today, we will talk about a family floater plan, its features and benefits.
What is Family Floater Health Insurance?
A family floater health insurance plan is a medical insurance policy that offers coverage to all members of a family. The family members include the policyholder, his/her spouse, children, and dependent parents. Some insurers also allow the policyholder to include his/her siblings and in-laws under the family floater plan.
How Does Family Floater Insurance Work?
When you buy a family floater health insurance policy, the insurer offers a high sum assured that any member of the family can use it. So, if you buy a family floater plan with a sum assured of ₹20 lakhs, then any family member can utilise up to this amount for medical expenses. Hence, there is a single sum assured for the entire family. If one member utilises ₹2 lakh from the sum assured, then ₹18 lakh will be available under the plan for the policy term.
Benefits of Family Floater Health Insurance
Here are the advantages of opting for a family floater health insurance policy:
- The family floater health insurance plan covers the costs associated with hospitalisation, surgery, doctor’s fees, pre and post-hospitalization expenses and other health-related costs for all your family members.
- Some family floater policies offer free health check-ups for the entire family once a year (or six months).
- A family floater plan saves you the hassle of buying and managing multiple individual health insurance plans.
- You save a lot of money by paying the premium on a single policy. If you were to buy individual health plans for all family members, then the total cost of the premium would be very high compared to a family floater plan.
- You can avail of tax benefits under Section 80D of the Income Tax Act, 1961.
Who Cannot Be Covered Under a Family Floater?
Every insurance company defines a family differently for family floater insurance policies. Some insurers limit the maximum number of adults under a family floater plan, and you cannot add anyone except your spouse, dependant children, and parents. Some insurers may allow you to include your siblings and in-laws. Therefore, ensure you understand how the insurer defines family for the policy.
On the note of exclusion, when dependant children reach the age of 23 years, family floater plans exclude them.
A family floater health insurance plan is designed to help you get coverage for your entire family under one policy. It is a very easily manageable plan compared to multiple individual insurance policies. But remember, every family floater plan is different and offers different benefits. It is important to look at different options and compare health insurance plans to find the perfect one for your needs. Assess the health condition of all your family members and make sure that you get adequate coverage. Also, look at other features like the cashless hospital network, the claim settlement process, and the quality of service offered by the insurer before signing the dotted line. Good Luck!