What Is Family Floater Plan What Are Benefits Of Family Floater Health Insurance

Family Floater Plan, Family Health Insurance, Insurance Agencies in India



With time, people are becoming more conscious about their health and well-being. Awareness of health care and willingness to spend for the same is also quite evident. In addition, people are also spending on resources that help them mitigate the risk of such expenses. Most certainly, healthcare expenses, in extreme cases, cost a fortune. Therefore, there is a definite increase in purchasing health and medical claim policies. 
 
While awareness of the importance of healthcare policies keeps increasing daily, there needs to be more understanding of which insurance to buy. As a result, many individuals are faced with the dilemma of choosing between individual health plans for each family member and investing in a family floater plan. If you are unaware of the latter, there’s nothing major to worry about. We have got you covered. Let’s understand family floater plans in detail.

What is a Family Floater Plan?

A family floater plan is one where members of a single family can be covered for a specific sum insured under a single premium each year. In cases of multiple illnesses for different family members, the sum can be distributed between all of those, and various claims can be entertained. As a result, a family floater plan is more cost-effective than having separate health insurance plans for each family member. Furthermore, considering that any family member can utilise the limit of a family floater plan, this option offers more flexibility for using insurance coverage. 

Key Features of Family Floater Plans

  1. Starting with the most evident one, the sum assured under a family floater plan can be extended for coverage of several family members. Then, depending on the location and the healthcare risk appetite, the primary policyholder has the option to zero in on a lower or higher sum insured. Eventually, the same results in the insurance premium accordingly.

  2. In cases where the insurer is intimated within 24 hours of hospitalisation, the covered members of a family floater plan can opt for cashless hospitalisation. They can easily get admitted to a network hospital. In emergency cases for admission to no-network hospitals, insurers may be allowed to avail treatment first and tackle the reimbursement later.

  3. A family floater plan policy may include coverage for room rent up to a specific amount per day for the entire tenure of hospitalisation.

  4. Some family floater plans allow co-pay basis operation. This works when the insurer pays a percentage of the cost incurred, and the rest is upon the insured. These kinds of plans usually have lower premiums.

  5. When a higher sum assured is involved, most companies often seek a medical examination when any members involved have a medical history or belong to higher age groups. 
Find the Best Health Insurance Agencies in India and their Offices

Family Floater Health Insurance Plans Benefits

Family floater insurance policies offer the following advantages:

Cost-effectiveness

One can avail higher sum insured at reasonable costs. These kinds of policies offer the benefits to be shared across multiple family members. Generally, the chances of all members falling sick simultaneously are quite rare. Since the premium has to be paid only once and is cheaper, floater plans are more effective than individual health insurance plans.

Tax benefits

Availing of tax benefits of family floater plans is relatively easy. One can help with deductions under section 80D of the income tax act. The same allows deductions for amounts up to Rs. 15000 for health insurance premiums for self, spouse and children. Moreover, an exemption of Rs. 20,000 is also offered if the floater plan covers a senior citizen. Therefore, the tax benefits are double if you pay for your parents’ health policies.

Restoration of Sum Assured

Family floater plans allow one to restore the sum assured in cash in cases where it gets exhausted due to a family member’s hospitalisation. In addition, some insurers offer automatic top up by 100%. Family floater health plans allow cashless treatment of the insured person at any network hospital. As a result, policyholders can avoid paying hefty consultation fees or other costs. 

Greater medical coverage

Family floater health insurance plans, cover multiple costs such as hospitalisation fees, doctor consultations, medical expenses, diagnostics, procedures undertaken, ambulance cover, hospital staff care and more. In addition, some insurance companies also provide medical check-up facilities for the entire family annually. 
 
Family floater insurance plans usually allow members to avail of discounts in the programs. Additionally, adding new members to an existing family floater health insurance plan is relatively easy.

Who Should Buy Family Floater Health Insurance Plans?

As the name suggests, family health insurance policies are best suitable for married people with children. Additionally, those looking to cover health expenses for their parents, who may be senior citizens, can opt for these policies. However, these are not ideal for self-dependent individuals with no dependencies.

Exclusions of Family Floater Health Insurance Plans

  1. Family floater, health insurance plans do not provide coverage for pre-existing diseases for a specific period.

  2. Admission of members above 60 may lead to a substantial increase in the premium and might be problematic. In such cases, the perceived risk tends to be higher. However, members younger than 60 can avail of continued coverage on regular policy renewal.

  3. Family floater health insurance plans usually do not cover childbirths. But now, several insurers have started offering coverage for newborns, starting right at birth. 

Conclusion

In today’s day and age, family floater health insurance plans are a vital economic instrument. Especially post-pandemic, the significance of healthcare instruments and preventative measures has been strengthened. The country has also witnessed a sharp increase in medical prices. Therefore, to live a stress-free life with adequate medical coverage, more and more people are now inclined to opt for good health insurance coverage. Nevertheless, one must always be cautious before choosing a health insurance plan. Several factors, such as age, family status, risk appetite and more, should be considered. It is an excellent step to choose an ideal plan that offers all-inclusive coverage to guarantee your and your family’s healthcare expenses.







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