pays for your hospital bills for diagnostics, surgery etc.
Here discussed are some factors to opt for a floater Health Insurance cover. If you opt for this type of cover, the primary benefit is better Risk coverage. In case of a family floater policy, the primary determinant of the cost or Premium of the Policy is the age of the senior most member and his medical history.
1. Buy a separate health policy for each member of your family
2. Buy a floater health insurance cover, which is nothing but a single health policy that covers all members of a family
If you opt for this type of cover, the primary benefit is better risk coverage. To explain this point, let’s take an example of a family of three members. As discussed earlier, you may either choose to buy three distinct insurance policies that individually cover all three members for a sum of Rs 1 lakh each or you buy one floater policy that covers the entire family for a cover of 3 lakhs. In case of a family floater policy if either of the family members is hospitalized, he or she would be individually eligible for a cover of Rs 3 lakhs. So, if the hospitalization costs are 2.5 lakhs, entire amount will be reimbursed by the insurance company. While in case of an individual policy, the insurance cover would be restricted to just 1 lakh and you would have to shell out the rest out of pocket. So, it is wise to opt for a floater cover rather than buying individual policies for each member.
But the risk with this policy is that in case all three members of a family are hospitalized in the same year or together, the risk Coverage will still be restricted to a sum of Rs 3 lakhs.
In case of a family floater policy, the primary determinant of the cost or premium of the policy is the age of the senior most member and his medical history. The premium cost for a floater plan will be lower than purchasing individual policies for each family member, if the family is young and healthy, but substantially high otherwise. Hence, it would make sense to go for a floater cover if the senior most person in family is young and healthy enough
Those who buy a family floater policy are often concerned that what if there is an unexpected demise of the proposer. However, there is nothing to be worried about, as coverage under the floater policy will still continue. The other members covered under the policy should make sure that they inform the insurance company and agree to become the new proposer.
Family floater policy extends insurance coverage to a child only upto a certain age. If the child crosses the age, he becomes ineligible for coverage under the policy. In such a situation, the policy premiums are also reduced.