Today health insurance policies are gaining popularity as people are getting more aware about the importance of the same. Looking at the demand of the insurance products and different needs of the customers, insurance companies are coming up with innovative insurance products in the market. Earlier customers use to take health insurance cover only for the key or earning members of the family but now customers are showing interest in covering all the members of the family in a proper health insurance cover. The need of covering all the members of the family under health insurance resulted a new insurance product i.e ‘Family Floater’.
Family Floater Policy is a health insurance policy which is designed to offer insurance cover to all the members of a family. In simple words, this policy takes care of the medical expenses of the entire family. But whenever we plan to take health insurance policy we get confuse whether to take individual health insurance for each member of the family or to go for Family Floater?
Lets first see how this policy works in real time:-
Family Floater policy is a health insurance policy which allows you to add all the members of your family. However some insurers restricts you to add your parents in your family floater policy whereas some allows. As name suggest, it is a health insurance policy for a family, so to buy this policy at least two members of a family should be added.
Now understand whether to take a family floater or individual policy:-
When we plan to take a health insurance we first analyze the cover that we need. Here for example you are four members of a family, you age 40 years, your wife age 35 years, your son age 17 years and your daughter age 12 years.
If you need a health insurance cover of Rs 3 lac for each member of your family then your premium will be somewhat like this:-
|Total||Rs 13,426 + Taxes|
Whereas if you buy family floater you will end up paying Rs 12000 + taxes for the sum assured of Rs 5 lac. This will cover all 4 members of your family and offers you high cover at equivalent or lower price.
When it comes to claiming insurance in case of some health problem, you can claim upto Rs 5 lac for any member of the family who are covered in the policy. In case you claimed Rs 2 lac at the time of hospitalization of your wife then Rs 3 lac will still be there to claim by any other member in case of need.
Advantages Of Family Floater
- It will cost you less as compare to individual health insurance policy.
- One health insurance policy covers most of the family members.
- This policy offers higher sum assured.
- Less documentation as compare to individual health insurance plan.
- Floater policy offers sufficient cover to all the members of the family.
- In case of unsatisfied service by the insured you can switch to some other insurance company for the family floater.
- You can claim tax deduction against the insurance premium under section 80D of income tax act.
Disadvantages Of Family Floater
- There can be a situation where due to one or more heavy claims all other family members of family left with little or no cover.
- Some insurance companies allows only immediate family members i.e spouse and children, not even your parents and siblings.
- In case of death of the proposer, the family floater policy stops covering other members of the family. In that case other members have to go for a fresh health insurance either individual or floater.
- This type of policy covers children till there maximum age (normally 25 years in most cases) after that they need to buy a separate policy for themselves.
- The policy can be renewed only till the senior most member of the policy turns the maximum age of renewability depending on the policy. And that time, the other family members will need to take a fresh policy.
It is more suitable for families where health risk is low (young family members). As in these plans price of the policy is decided on the basis of the age of the senior most member. In there is any risk of some major health issues in any of the family member, better take a separate health insurance policy for that member and cover the rest in a family floater.