Moneywise

Understanding the Family Floater Health Insurance plan

When looking for a health plan, it’s possible you’ll start thinking of one that would give you and your family with the best benefits. So, the big question is, should you opt for the Family Floater option or individual health plans? We’re going to try and help give you the best possible answer to get you on your way to securing your family’s health.

What is Family Floater health insurance?

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In a nutshell, Family Floater health insurance plans are made for families and cover individuals, their spouses and children. This type of plan provides cover for medical expenses; for a medical emergency like a sudden illness, hospitalisation or any disease that may come up. The sum guaranteed can be utilised for any member of the family whenever needed. For example, if a family of four takes a cover of Rs. 6 lakhs, then all the family members can claim that amount when required.

That seems like a good solution, but let’s nonetheless discuss some of the main advantages and disadvantages of these plans to give you a better idea of what’s involved:-

Advantages of a Family Floater health insurance policy

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1. Provides cashless treatment

The Family Floater plan allows for the treatment of any family member covered to cashless admittance at any network included the hospital. Policyholders do not need to pay any heavy consultation fees, room rent or diagnosis tests. The expenses, up to the sum assured, are covered directly by the policy.

2. It’s affordable

The major advantage of the Family Floater policy is its affordability. The total premium amount payable for the protection is, in most cases, quite reasonably priced as compared to opting for individual plans.

3. Benefits of savings

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These plans are also beneficial as they provide savings and could be a good option for young couples with children. The policy can be selected by a couple with two children, however, some policies allow for a couple with a single child with an option to add another child to the plan later on.

Here are some of the plan’s disadvantages:-

Family floater plan- Disadvantages

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  1. Family floater plans are priced according to the age of the eldest family member. If one chooses this type of plan, it remains applicable until the highest age of renewability, which is 60 or 65 years, depending on the insurance company.
  1. The plan is available only for immediate family members, including a spouse and children. In a lot of cases, one cannot include parents and in-laws.
  1. The family floater plan can be renewed only till the senior-most members reach the maximum age of renewability. Other family members including children would need to apply for a new policy without the benefit of continuous coverage that they have received under the policy.

So why opt for a family floater plan over other individual policies?

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To sum it up, individual plans can be more expensive. They’re perfect for young families who are bound by a smaller budget for their insurance spending. There are plenty of variations to Family Floater plans so do your comparing or talk to your agent and pick the one that suits you best. And while it shouldn’t necessarily be based on money, Family Floater plans are a low-cost alternative to individual policies that can provide your family with enough coverage at a reasonable price.

 

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