You can cover your whole family under the same Health Insurance
plan. Family floater Policy
makes that possible. Although you can buy individual policies for all family members, family floater policies are fast gaining popularity. A major reason for this popularity is that the whole sum Assured
is available for all the family members Insured
and premiums are also lower. Understanding Family Floater Health Insurance
In a family floater health policy, the whole family is covered under a single plan. The family members who can be considered for this are immediate family only; that is self, spouse, and kids. Parents may be considered provided their age is permissible as per the insurance company norms. Other family members cannot be covered under the same plan.
One has to decide a Sum Assured
for the policy. Now this sum assured is available for the whole insured family for the year. If the need arises, this whole amount is available for the family member. Whatever is left after the Claim
is available for the rest of the year for the family. Though it gives greater cover in case of single claim in the year, cover left for the rest of the family is reduced.Who Should Prefer a Family Floater Policy and Why
One can afford to take higher sum assured with this kind of a plan. For example, you may take Rs. 2lacs health cover for each member of a family of three people. Here if the need arises, the individual will be entitled to a maximum cover of Rs 2lacs only and the rest of the expenditure if any will have to be paid from own pocket. Whereas, if you take a family floater policy of Rs. 6lacs for a family of three, cover available for the individual is Rs.6lacs.
Family floater policy is ideal for young nuclear families with lower health risks. Lower health Risk
is an important consideration for family floater plans because though it allows higher cover in case of single claim, the cover is greatly reduced for the rest of the family in a situation of multiple claims.
Compared to individual policy, the Premium
of family floater policy is much less. It offers a decent health cover for families who need health cover but can’t afford to pay heavy individual premiums. Family floater mediclaim
comes at a lower premium as compared to individual policies for each family member for same coverage.
The policy is not too suitable for people in the higher age slabs or with greater health risks. Since premium increases with age, you will lose on the reduced premium benefit if one of the insured is in the higher age slab. Further, if one or more of the family member are at a greater health risk, we advise to opt for individual policy. Higher health risk may mean frequent claims and this would leave a much reduced cover for rest of the family members.
Family floater policy is generally available only up to the age of 60-65 years of age of the oldest insured member. There after either it is cancelled or converted into individual policy.
Family health cover has many benefits and is suitable in many cases. Yet, it is always better to evaluate available options before buying any health insurance.