Importance of Family Floater Health Insurance Policy
In India, health insurance policies are of two types
Family Health Insurance
The family policy covers the full family under a single-family floater plan, which means you need not purchase multiple insurance policies for your family members.
Individual Health Insurance
An individual, as the term suggests, offers protection only to a single person. You can buy one for yourself.
What is a family floater plan?
A family floater health insurance plan is a type of health insurance under which all the family members can be covered by paying only one premium. If there are multiple claims at the same time, the sum assured will be split amongst all family members. This policy is beneficial if you have more than two members of your family. The family floater plan is cost-effective as you get cover for all family members with a single premium.
What are the advantages of family health insurance?
The best part about a family health insurance policy is that it saves the hassle of maintaining multiple policies. It covers your entire family under one policy including the extended family, including your in-laws. The other significant benefits that it offers are:
- A family health insurance policy is cheaper than an individual policy.
- Sum insured in a family floater plan is set higher to cover for the entire family. This will ensure that if two people fall ill at the same time, there won't be a shortage of funds.
- In case the sum assured gets exhausted while treating someone, \few insurers offer 100% restoration.
- The family floater plan also gives you tax benefits under Section 80D of the Income Tax Act.
- Family floaters also offer cashless treatment at any network hospital.
What are the features of a family insurance plan?
The selling point of a family floater plan is the fact that the sum assured can be increased or decreased according to the needs of the family. The primary applicant can take into consideration factors like risk, location, the average age of the policyholders, etc.
Like any other health insurance policy, a family floater allows a cashless facility. You can avail of the cashless facility by getting treatment in any of the hospitals that are part of the insurer's network. In case of an emergency, if treatment is taken in non-network hospital you can pay the initial cost of treatment and later apply for reimbursement.
This policy covers everyday room rent under a specific limit in case of hospitalization.
Some floater policies are bought on a co-pay basis, here, the insurer pays a certain amount, and the rest must be paid out of your own pocket. The percentage of the payment by each party is determined at the time of buying the policy.
If the sum assured is higher, the insurance companies may ask you to undergo a medical examination before issuing the policy.
Who should buy a family floater policy?
A family floater policy is ideal for people who are married with children. The policy also covers senior citizens and extended family members, allowing people to include their parents and in-laws in the policy.
What are the exclusions under this policy?
- By default, pre-existing diseases are not covered under the family floater plan. They are covered after the completion of the waiting period.
- Including a person above 60 may not always be easy, albeit some exclusions.
- Treatment due to suicide attempts and nuclear attacks are not covered.
- Treatment due to consumption of, congenital diseases, etc. are not covered.