Family Floater Health Insurance Plans – A Quick Overview
Published On Aug 20, 2023, Updated On Aug 22, 2023
A family floater health insurance plan covers the entire family rather than just an individual. It brings all family members under a single umbrella cover, allowing them to benefit from a larger common pool. A family floater policy can cover multiple family members for a specified sum by paying a single premium annually.
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This policy is beneficial when multiple family members are sick with different illnesses. It allows the coverage amount to be divided among them, so they can make multiple claims if needed. Choosing a family floater policy is often cheaper than getting separate policies for each family member. Many health insurance companies in India offer family floater policies as part of their offerings.
Why Purchase A Health Insurance Policy For Yourself And Your Family?
Here are several compelling reasons to buy family health insurance plan:
- Rising Medical Costs: Healthcare expenses are constantly increasing and are expected to continue rising. A family floater health insurance plan provides a wise and effective solution to protect your savings during unexpected medical emergencies.
- Insufficient Employer Coverage: Relying solely on the health insurance provided by your employer may not be enough. Such coverage typically ends when you change jobs, leaving you without adequate protection. Additionally, these policies may not offer customisable coverage or benefits tailored to your specific needs.
- Escalating Lifestyle Diseases: Unhealthy lifestyles and work-related stress have led to a rise in lifestyle diseases, even among younger individuals. Therefore, regardless of age, a comprehensive family health insurance policy is crucial. The early onset of chronic ailments.
- Medical Inflation: Medical expenses go beyond just hospitalisation and encompass various aspects such as doctor's consultations, diagnostic tests, ambulance charges, operation theatre costs, medications, and room rents, which are continuously increasing. Without proper financial preparedness, these expenses can significantly impact your finances. However, by opting for a health insurance policy with an affordable premium, you can effectively mitigate the burden of medical inflation. This allows you to access quality treatment without concerns about the cost, ensuring peace of mind and financial stability.
- Savings on Premium: By opting for a family health insurance plan, you can share the sum insured among your family members. This intelligent approach allows you to cover your entire family under a single policy, significantly reducing health insurance premiums. Furthermore, managing multiple policies and their renewals becomes hassle-free.
- Tax Benefits: Under Section 80D of the Income Tax Act, you can enjoy tax benefits on your health insurance premium payments. Therefore, a health policy protects you from financial burdens during medical emergencies and helps you save on taxes.
What Do Family Floater Plans Cover?
Family floater health insurance policies provide comprehensive coverage against various medical expenses, ensuring that you can focus on the well-being of your loved ones during a medical emergency without the burden of worrying about hefty medical bills. While the coverage may vary among insurance providers, the best family floater plans typically offer coverage for the following:
- Daycare procedures: Family floater plans cover various daycare procedures without extended hospital stays. Examples include chemotherapy, cataract surgery, tonsillectomy, hernia repairs, and endoscopies. Coverage ensures financial protection for diverse medical needs, even without prolonged hospitalisation. Some plans offer coverage for 160+ daycare procedures.
- Surgeries: Family floater policies typically cover major and minor surgeries such as appendectomy, gallbladder removal, joint replacements, and heart surgeries. Review policy terms and conditions for specific coverage limitations and exclusions.
- Room Rent: Family floater plans often cover room rent expenses during hospitalisation, reducing financial burden. Some comprehensive plans may include additional charges like registration fees and service charges, minimising out-of-pocket expenses.
- Health checkups & vaccination expenses: Many family floater plans offer complimentary health checkups, including consultations, diagnostic tests, and screenings. Some plans also cover vaccination expenses for both adults and children, which is especially valuable during times like the COVID-19 pandemic.
- Pre-hospitalisation & post-hospitalisation expenses: Family floater plans typically cover pre-hospitalisation costs (e.g., tests, consultations) and post-hospitalisation expenses (e.g., follow-up treatments, medications, rehabilitation). Comprehensive financial support throughout the healthcare journey, before and after hospitalisation.
- Extended coverage options: Certain family floater plans allow extending coverage for pre and post-hospitalisation expenses by paying higher premiums. Ideal for individuals anticipating longer recovery periods or ongoing medical treatments, providing peace of mind and support in complex medical situations.
Advantages of Family Floater Health Insurance Plan
Some of the advantages of family floater health insurance plans are as follows:
- Cost-effective coverage: Family floater policies allow sharing a sum assured among family members, reducing the need for individual policies and making them more affordable. It optimises coverage as the likelihood of multiple family members falling ill in the same year is low.
- Tax benefits: Premiums paid for family floater policies qualify for tax deductions under section 80D of the Income Tax Act. Individuals can save up to Rs. 35,000 in taxes by covering immediate family members and senior citizen parents.
- Restorable sum assured: Some insurers offer automatic restoration or top-up of the sum assured if it gets exhausted due to hospitalisation. This ensures continuous coverage and alleviates concerns about recurring medical needs in the same policy year.
- Cashless treatment: Family floater policies provide the convenience of cashless treatment at network hospitals, covering expenses such as consultation fees, diagnostic tests, and room rents. This eliminates the need for out-of-pocket payments and simplifies the reimbursement process.
How To Buy A Family Floater Health Insurance Plan?
If you are considering purchasing a family floater plan from a branch, you can do so during office hours. However, opting to buy a family floater health insurance plan online offers several advantages that you can enjoy:
- Convenient and Effortless Process: The online purchasing of a family floater plan is incredibly convenient. You can avoid braving the weather elements or getting stuck in traffic. With just a few clicks and taps on your computer, laptop, or mobile phone, you can easily buy a family floater plan from your home.
- Flexibility in Timing: When buying a family floater health insurance policy online, you are not bound by the branch's operating hours. You can purchase anytime that suits you, regardless of the branch's schedule. This flexibility allows you to fit the process seamlessly into your busy lifestyle.
- Time-Saving: Opting for online purchases eliminates the need for travel time to visit a branch. Instead, you can complete the entire process online, saving you valuable time. With simplified online forms and intuitive interfaces, you can finalise your purchase within minutes, ensuring a hassle-free experience.
- Paperless Convenience: Say goodbye to the tedious task of filling out physical forms and submitting numerous documents. Online family floater plans offer a paperless approach. You can enter your information electronically and easily upload any required documents. Additionally, since the entire process is online, you will receive a soft copy of your policy document, ensuring its safety and accessibility in your email.
Family floater health insurance plans are a prudent choice for securing your family's health needs. They provide comprehensive coverage, affordability, tax benefits, and restorable sum assured while ensuring peace of mind during medical emergencies. The process of buying such a policy is easy and convenient online, saving you time and effort. This affordable and effective insurance solution offers financial protection against rising healthcare costs and ensures that your loved ones are well-protected.
- How many members of a family can be covered?
The number of family members covered under a health insurance policy varies among insurance companies. Typically, most insurers provide coverage for the primary insured, their spouse, and children. However, some insurance providers go a step further and allow for the inclusion of parents, siblings, and other relatives under the same policy. It's important to review each insurance company's specific terms and conditions to determine the extent of coverage available for family members.
- What is the age limit for family floaters?
Dependent Children Are Only Covered Up to a Certain Age. There is an age limit for dependent children covered under a family floater plan. The policy provides coverage for dependent children, but only up to 25.
- What options are available if the sum assured is reached during the treatment of a member under a family floater policy?
Insurance companies take different approaches. Some insurers offer an automatic restore/top-up facility to replenish the sum assured after reaching the limit on hospitalisation coverage in a calendar year, while certain companies strictly limit coverage once the sum assured is reached.
4 How does the premium amount change next year if no claims are made on a family floater policy?
Certain insurers offer a no-claim discount up to a specified amount. If no claims are made on a family floater policy, the premium for the following year reduces as stated in the policy terms and conditions. This discount serves as an incentive for policyholders who maintain a claim-free record.
- What is individual non-floater health insurance?
When deciding between a floater and non-floater health insurance policy, a non-floater plan assigns a separate sum insured to each family member. The premium for this type of plan is determined based on the age of each individual covered.