As the name implies, a family floater health insurance covers the entire family under a single policy. The policy benefits apply to your spouse, dependent children, and dependent parents. Sometimes, siblings are also covered by this plan, but you must check this with your insurer. In this blog, we will discuss the important features, benefits, and process of buying a family floater health insurance to assist you in making the right decision.
What is Family Floater Health Insurance?
In a family floater health insurance policy, each covered member can use the sum insured up to the full amount. However, if one member uses the entire amount, the other member will be denied benefits. To overcome this, you can supplement your policy with a reinstatement add-on. It will restore the sum insured, allowing other covered members to benefit from the coverage.
Key Features of Family Floater Health Insurance
Some important features of family floater health insurance are-
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Single Sum Insured for Whole Family-
A single sum insured is shared among all insured family members without needing individual policies.
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Cashless Hospitalisation-
Many plans offer cashless treatment facilities at network hospitals, eliminating the need for upfront payments during emergencies.
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Tax Benefits-
Under the tax laws of India, a tax deduction can be claimed for the premium of a family floater health insurance policy.
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Wide Coverage:
Includes hospitalisation charges, pre- and post-hospitalisation expenses, daycare treatments, ambulance costs, and more.
Benefits of Family Floater Health Insurance
The benefits of a family floater health insurance are-
- The policy reimburses for pre and post-hospitalisation expenses.
- This family health insurance covers daycare procedures such as minor surgeries and anaesthesia.
- There is also a provision for medical expenses related to organ donors for a specific time.
- You can also raise medical bills related to in-patient and domiciliary expenses.
- Under the Tax laws (Income Tax Act Section 80D), premiums paid for this kind of health insurance policy are eligible for tax deductions.
How Does a Family Floater Health Insurance Work?
Assume you have a Rs 1,000,000 worth family floater insurance policy. Along with you, the plan covers your spouse and children. Your spouse and child became severely ill within a year of purchasing the policy. The treatment bill for your spouse is approximately Rs 800,000, and that for your child is around Rs 200,000. In this case, the sum insured of Rs 1,000,000 will cover both sets of bills. This structure provides flexibility but requires careful consideration of the family's healthcare needs to ensure suitable coverage.
What Does a Family Floater Health Insurance Plan Cover?
Given below is a list of inclusions under a family floater health insurance policy-
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In-Patient Hospitalisation:
Expenses related to hospital stays, including room rent, nursing, and associated costs.
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Daycare Procedures:
Treatments that do not require extended hospitalisation, such as certain surgeries and medical procedures.
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Ambulance Charges:
Costs incurred for transporting the insured to the hospital.
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Pre and Post-Hospitalisation:
Medical expenses incurred during a specified number of days before and after hospitalisation.
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Preventive Health Check-Ups:
Some policies offer coverage for routine health examinations.
What Family Floater Health Insurance Does Not Cover?
There are a few things that family floater health insurance does not cover. These are-
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Pre-Existing Diseases:
coverage is typically excluded during the initial policy period but commences after a waiting period.
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Cosmetic Procedures:
Expenses related to aesthetic treatments not medically necessary.
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Alternative Treatments:
Expenses for non-allopathic treatments may not be covered unless specified.
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Treatment of certain medical conditions
such as sexually transmitted diseases and issues arising from substance abuse.
Things to Consider Before Buying a Family Floater Health Insurance Plan
Careful planning and discussion among the family members is important before going for a family floater health insurance.
Key things to consider are-
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Assessment of Coverage Needs:
Evaluate the medical history and healthcare requirements of all family members to determine an adequate sum insured.
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Network Hospitals:
Check the insurer's list of network hospitals to ensure accessibility to cashless treatments.
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Inclusions and Exclusions:
Thoroughly read the policy document to understand what is covered and what is not, including any sub-limits or co-payment clauses.
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Waiting Periods:
Be aware of waiting periods for specific treatments or pre-existing conditions.
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Renewability:
Opt for policies with lifetime renewability to ensure continued coverage as the family ages.
How to Apply for Family Floater Insurance Plans Online?
Buying a family floater insurance plan online is a quick and easy process. Follow the guide given below-
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Visit Official Websites:
Access the insurer's official website or a reputable insurance aggregator platform.
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Use Premium Calculators:
Provide details such as name, gender, contact information, date of birth, and location PIN to get a quote on the policy.
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Choose the Insurance:
From the list of policies, choose the family health insurance and check the policy term, premium, and amount insured.
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Fill Application Form:
Provide necessary details, including personal information and details of all family members to be covered. Answer questions related to health, marital status, and information about all the family members.
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Upload Documents:
Submit required documents such as identity proof, address proof, and medical records if necessary.
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Payment:
Pay the premium online through secure payment gateways.
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Confirmation:
Upon successful payment, receive the policy document via email or download it from the insurer's portal, usually in 5 to 7 business days.
FAQs
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Who is eligible for buying a family floater health insurance?
The minimum age for getting family floater health insurance is 18 years, and the maximum is 65 years. Children between 3 months to 25 years dependent on the elders are also included in this plan.
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How many members can be covered by a family floater health insurance plan?
Up to 6 members can be covered under a family floater health insurance policy, including the couple, their children, parents, and in-laws.
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Who cannot be covered under the family floater plan?
Extended family members such as aunts, uncles, cousins, or grandparents are usually excluded under the family floater health insurance policy.
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What are the disadvantages of family floater health insurance?
High premiums and the possibility of the coverage being exhausted by one person only are some of the main drawbacks of a family floater plan. Limitations on the number of members can also be seen as a downside of this type of health insurance.
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Which is the better option- family floater or individual health insurance?
The value of a health insurance policy, be it a comprehensive plan for one person or medical insurance for the whole family, depends upon the needs and financial situations. While individual plans offer complete and personalised coverage, family floater health insurance is shared amongst family members.
Conclusion
A family floater plan is essential today. However, before choosing an insurer, you should consider the coverage scope, renewability options, ease of adding new members, and claim settlement process. Review the benefits and limitations of buying insurance for the whole family, and decide to ensure a tension-free and secure future for you and your loved ones.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It is not intended as a substitute for professional advice, diagnosis or treatment. Please consult a certified medical and/or nutrition professional for any questions. Relying on any information provided in this blog is solely at your own risk, and ICICI Lombard is not responsible for any effects or consequences resulting from the use of the information shared.