What is a Family Floater Health Insurance Plan?
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. For example, if a particular family member is hospitalized, the plan can be utilized for the maximum amount of cover.
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 teenager 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.
Factors Affecting the 'Floater Benefit'
Though floaters come in handy for small-sized families, they often are not best suited for families with elderly members or families having a history of medical ailments. As one large claim or multiple small claims of one member could exhaust the policy amount leaving other members without an adequate cover.
Key Benefits of Family Floater Health Insurance
Mentioned here are a few key benefits of availing such a plan:
1. More Coverage Amount
Each family member has access to the shared pool of the sum insured, thereby enjoying an enhanced coverage individually.
2. Lesser Premium
You need to pay lesser insurance premium for Family Health Insurance as compared to Individual Plans.
3. 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.
4. Easy Renewability
You can avoid the hassle of renewing multiple policies if you have one common plan like the family floater.
5. 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.
6. Facility of Adding New Members
You can easily add new members to the floater plan in a hassle-free manner.
7. No Maximum Entry Age
Family floater plans generally provide coverage to all family members. There is no maximum entry age to buy this policy.
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.
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