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Family Floaters - A Healthy Alternative For Families

A Family Floater Health Insurance Plan is a health cover that monetarily secures your entire family against most illnesses that could otherwise burn a hole in your pocket. The plan consists of a fixed pool of insurance amount that can be shared by all the family members.

  • 20 Jul 2015
  • 3 min read
  • 174 views

Understanding the 'Floater Benefit'

Mr. Mehra and Mr. Singh, both in their early forties, had opted for health insurance plans. They had a similar family structure - a family of three that included a teenage kid. While Mr. Singh opted for a health plan with floater cover, Mr. Mehra opted for an individual plan. Let's take a glance at what these two had to face:

 

Details

Scenario 1
Mr. Mehra + Family

Scenario 2
Mr. Singh + Family

Type of Policy

Individual

Floater

Policy Amount Taken

Rs. 2 Lac (for each individual member)

Rs. 6 Lac

Total Amount of Health Cover

Rs. 6 Lac

Rs. 6 Lac

Number of Members Covered per Policy

1

3

Actual expenses incurred by one member (due to hospitalization)

Rs. 5 Lac

Rs. 5 Lac

Amount of claim reimbursed

Rs. 2 Lac (as the maximum policy amount of one member is Rs. 2 Lac)

Rs. 5 Lac (as the maximum policy amount for each member is Rs. 6 Lac)

Out-of-pocket costs borne by policyholder

Rs. 3 Lac

Nil

 

As seen from above, the floater plan turned out to be more beneficial than the individual health plan.

 

Key Benefits of Family Floater Health Insurance

Mentioned here are a few key benefits of availing such a plan:

More Coverage Amount

Each family member has access to the shared pool of the sum insured, thereby enjoying an enhanced coverage individually. For example, if an individual insurance would provide a family member an insurance coverage up to ₹2 lakh, a family floater policy covering a family of four will be giving a coverage of ₹8 lakh.

 

Lesser Premium

You need to pay lesser insurance premium for Family Health Insurance as compared to Individual Plans.

 

Tax Benefits

Like other health plans, a family floater plan too lets you can avail tax deduction on the insurance premium paid u/s Sec.80D of Income Tax Act, 1961.

 

Easy Renewability

You can avoid the hassle of renewing multiple policies if you have one common plan like the family floater.

 

Continuous Coverage

Individual medical insurance generally expires on death of the insured. Family health insurance plans offer coverage against medical expenses even if a particular plan member passes away.

 

There is no doubt that health insurance plans with a floater option has been gaining popularity. However, choose a pragmatic approach while analyzing your needs and select a health plan that offers maximum risk coverage at an optimum premium. This will ensure that you are optimally covered to handle any medical emergencies that life may throw at you or your family members.

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