Should You Add Your Entire Family to the Floater Plan?
Updated On Feb 08, 2021
In recent times our lives have become increasingly sedentary and this has brought up a number of new health risks for most of the population. Adding to this dilemma, the costs of medical care in India are skyrocketing. In such a situation it has become crucial for every individual to be covered under a health insurance policy. Most of us hence look for health insurance policies that will cover the needs of our entire policy. The Family Floater Health Policy is what fills this requirement. However, this is not advisable. Read this article to find out why.
What is a Family Floater Plan?
A Family Floater Plan is a type of health insurance policy that provides coverage for the entire family under a single sum assured. It will cover the policyholder, their spouse, dependent children, dependent parents, and some even cover the parents-in-law. These plans are usually considered to be cheaper.
Should You Include Your Parents in a Family Floater Plan?
Though it is considered cheaper to purchase a family floater plan that includes all your family members, there are a few reasons why this may not be the best idea:
- Age Restrictions: Several family floater plans have age restrictions that will not cover individuals above the age of 65. If your parents are above this limit, which most of our parents are, you cannot be included in the plan.
- Higher Premiums: The premium of a floater plan is determined by the age of the eldest member. Thus, if you include your parents in such a plan the premiums will be significantly higher.
- Frequent Claims: With age, our health conditions naturally worsen. Hence, senior citizens require to make health insurance claims far more frequently than younger people. If your parents are part of your policy, the frequent claims will mean you do not get any claim bonus or it has no chance to accumulate.
- Waiting Period: For pre-existing illnesses, health insurance plans have a waiting period, this usually lasts between 2-4 years depending on the policy. Since senior citizens require health insurance claims more often and most probably have higher chances of having pre-existing conditions, the policy is not financially effective.
What is the Alternative to Including Parents in the Family Floater Plan?
You may be wondering if it is not financially advisable to include parents in the family floater plan how should you keep them insured? For senior citizens there are separate floater plans that are better suited to their needs:
- Shorter Waiting Period: Plans designed for senior citizens have a lower waiting period for pre-existing illnesses. Hence, the cost of medical care pertaining to such ailments would be spared.
- Lower Premium: The overall cost of the premiums if you have a separate policy for your parents will be lower and better suited to their needs.
- Tailormade Coverage: With a senior citizen plan the coverage will be better suited to the needs of older people. This type of coverage will not be available in the standard floater plans.
In an overview, having health insurance for every family member in India is now crucial with the rising health risks and health care costs. When purchasing health insurance it may seem convenient to simply purchase a family floater plan for all the family members at once, but is not advisable. Instead, it is better to purchase a separate senior citizen plan that is better suited to your parents' needs and is more financially viable in the long run. Purchasing insurance now takes a few simple steps and can all be done online. You can compare different health insurance companies, the plans they offer, their network of cashless mediclaim hospitals, renew and existing policy, and also check the claim settlement process with just a few clicks. To read similar articles on health insurance click here.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.