A family floater is one of the best health insurance plans for family health care.
This comprehensive medical insurance policy assures that the sum-assured payout covers the entire family.
This implies that any member of the family mentioned in the policy may use the health plan to cover medical bills up to the sum-assured amount. Say your family of four has opted for a family cover of Rs. 5 lakh, then, all four of you may claim that amount together.
A family floater primarily insures the policyholder, spouse and children (2-3) but there are Insurance companies that provide family cover for extended families as well. This way you may include your parents in the policy as well.
What does a family floater health insurance entail?
Let’s consider Aymn’s family, consisting of his wife and 2 kids, purchase individual health insurance policies of Rs. 3 Lakh each, which amounts to a total of Rs. 12 Lakh. On the other hand, Rajan, as the policyholder, purchases a family floater for Rs. 10 Lakh for his entire family. Rajan now enjoys less administrative hassle, pays a lower premium, and is rest assured that in the time of need any member of his family may avail the policy’s benefits.
Now let’s assume Rajan’s spouse needs to be hospitalized and the expenses mount to Rs. 5 Lakh. On an individual policy, as in Aymn’s case, the sum-assured would only be for Rs. 3 Lakh. Rajan, however has a Rs. 10 Lakh family cover. His spouse can claim Rs. 5 Lakh insurance coverage, while the rest of the family is still assured for Rs. 5 Lakh, and for a lower premium too!
Realistically, the idea is that not every family member will fall ill at the same time, nor will they have identical medical expenses. Therefore, even if a family member incurs heavy medical expenses that slash on the cover for remaining members, a situation as such is not likely. Instead, chances of a majority of members ending up not needing the family coverage is high.
Benefits of a Family Floater Health Plan
- Easier management: A single family cover will offer a holistic plan and benefits, minus the hassle of maintaining separate policies, and keeping up-to-date with usage and renewals.
- Higher coverage: Instead of a small individual cover, the family floater covers any member of the policy for the total sum-assured of the entire policy, and for lower premium too.
- Modifying members: You have the option to add or remove family members quite easily, in the event of a birth in the family or in the event of another’s demise.
- Low cost: Based on the age of the primary insured, the overall cost and premium amount is lower for a family floater than opting for individual health policies. The exception to this benefit may be:
- If the primary insured is comparatively the oldest in the family or has a comprehensive medical history.
- If the No Claim Bonus for family members not making any claims is high and makes an individual plan cheaper.
It is however important for you to consider your requirement and the pros and cons of both health coverage policies before to make the final call. To know more about health insurance plans, contact us at PL-India Health Insurance and we shall revert at the soonest. Alternatively, do email us at insurance@plindia.com