With medical inflation hitting the skies these days, it becomes all the more important to safeguard your family and your hard-earned money by investing in health insurance. But buying and maintaining individual policies for each member can become exhausting and annoying.
So, like you take out the big umbrella to shield your family when it rains, you can shield your family against the onslaught of medical expenses with a family floater health insurance plan. Each member of your family is secured under the plan - the total coverage “floats” among them.
Let’s have a detailed look at a family floater health insurance plan.
What is a family floater health insurance plan?
Family floater health insurance policies provide coverage for the medical expenses that your family might incur. All family members are covered under one policy, i.e., the total sum insured is shared by everyone. It is an effective way to secure financial coverage against medical costs.
How does it work?
Under a family floater health insurance plan, you can get financial coverage for yourself, your spouse, children, parents, and even extended family members like your in-laws, aunts, and uncles. The number of members you can add will vary depending on the insurer.
The sum insured under a floater policy is shared by all the family members. And, you will have to pay a single premium on a regular basis and manage a single policy.
Elsa buys a family floater health insurance policy for herself, her spouse, and her child with a cover amount of Rs. 15 lakhs.
?In the same year, her husband met with an accident and fractured his right leg. The treatment cost around Rs. 30,000. These costs were covered under the policy.
?Elsa had to undergo cataract surgery after a few months, which cost her Rs 1 Lakh. This was covered by the policy as well.
Now, let’s talk about the advantages of buying a family floater health insurance plan.
Benefits of a family floater health insurance plan
- One large cover can be shared across family members
The foundational feature of a family floater is that the entire sum insured is shared among the family members. Even if a person requires major hospitalisation expenses, the entire cover amount can be utilised by that single member. This becomes very beneficial as the odds are low that the whole family gets sick in the same year.
- It can be cost-effective compared to individual plans
You get a large cover at a lower price since the entire family is covered under one plan and you don’t need to invest in multiple plans. Comparatively, your overall premium will be less.
For example, if you purchase two individual health insurance plans with a sum insured of Rs 15 Lakhs each for your partner and yourself - you will pay higher premiums as compared to a floater cover of 30 Lakhs covering both of you.
Important: In some cases, the premium for a floater can be higher than that for separate individual health insurance policies purchased for the same number of people.
- Single policy, single policy document
In the case of a family floater, as all members are covered under a single policy, you need only manage one single plan and have to make only one single premium payment - making it way easier to manage!
- Insure new family members easily
The addition of a new family member to your existing family floater plan can be done easily. In the case of individual health insurance, you will have to start from scratch by buying a new policy for each member. The same is not the case with a family floater policy. You can add extra family members by paying additional premiums.
Note: If you are adding new members to your existing family floater, ensure that you evaluate the sum insured again to ensure adequate coverage.
- Tax benefits
These policies also offer tax advantages. The annual premiums you pay for the family floater policies are eligible for tax benefits under Section 80D of the Income Tax Act of 1961.
Families can benefit the best from floater health insurance policies as they are affordable and offer more holistic protection. We hope you make a wise choice by choosing the best plan to guarantee the medical coverage that your loved ones deserve!