The pandemic has made us more conscious of the significance of our health and well-being. Likewise, people are more aware of the potential financial and physical costs of sickness. Consequently, the need for health insurance is realised even more, and going without it might leave you financially vulnerable in the case of illness. Whether there is a pandemic or not, it is crucial to make an investment in insurance that meets your requirements. You need health insurance coverage that protects you and your family against the expense of medicine and treatment.
The two types of health insurance offered in India are family health insurance and individual insurance plans. As their name suggests, separate health insurance plans only cover one individual. So you may get one for your spouse or yourself. On the other hand, family insurance covers your whole family in single-family floater insurance. As a result, you do not need to purchase separate insurance for each family member.
What is family floater health insurance?
A family floater healthcare plan is a form of health insurance that allows you to cover every family member under a single policy. The insured amount will be available for all family members if many claims are filed simultaneously. In addition, the family health care policy is affordable since you have to pay one premium to cover the whole family.
Before getting a family floater plan, you should carefully check the conditions stated in the policy documents. Insurers established the maximum limit on entrance age from 65 to 75 years old sometime back. However, with IRDA’s involvement, most insurers now provide lifetime renewability. Before choosing a plan, always cross check the sub-limits for the subcategories.
Benefits of a family floater plan of health insurance
One insurance that provides coverage for all family members is a family floater policy. All members share in the guaranteed amount, making it economical to purchase coverage for everyone at a single price. Let’s see why family health insurance plans are the most effective for all families.
- Covers every family member under a single plan
With a family floater policy, you may get coverage for everyone in your family and yourself. In addition, as opposed to having individual policies for each insured family member. The policy has a single amount insured, which all covered members share. This makes it considerably simpler to handle.
Family health insurance can be less expensive than purchasing individual health insurance plans for each member of the family. Compared to a personal health insurance plan, it provides a substantial covered amount at a reduced rate. In addition, a family floater plan will be more affordable in the long term if you are married and have children. Additionally, in this instance, the premium is determined by the age of the family member who is insured the longest. Therefore, this may be a more cost-effective alternative for a family with older members.
- Easy to manage
The main benefit of purchasing a family floater plan is that it eliminates the complexity of maintaining several policies. With a single policy, the whole family is protected. In addition, you don’t need to renew several policies continually. Every year, there is only one renewal available.
- High sum insured
It is among the top advantages of family health insurance plan. With a family health care plan, even if two family members get sick at the same time, they will be covered. It will provide coverage for a more significant amount for the whole family. The coverage will be the same for both members. If one family member gets sick and needs medical attention, they may use the total insured amount under a family insurance plan. Let’s use a family floater insurance of Rs. 5 lakh as an example. You have a household of four. Now, if one of you has a medical emergency, they can use up to 5 lakhs of this money for their treatment.
- Tax benefits
As per section 80D of the Income Tax Act, you can get tax deductions for the premium you pay for a health insurance that you buy for yourself, spouse, children and parents. Depending on your age, that of your parents, you can get a combined tax relief of up to Rs.1,00,000.
- Health checkup
You can monitor the family’s health according to the insurance. But if the whole family needs a checkup, it might become an expensive affair. With the correct insurance, you may get free medical examinations at regular intervals. Some plans also cover the cost of vaccinations, which can be helpful.
- Hassle-free claims
You can conveniently and quickly resolve claims under floating health insurance coverage. If you have a separate plan for every member, then multiple claims may need to be settled, which may be frustrating and time-consuming. With a family floater plan, you may finish the procedure quickly. You may evaluate and understand the company’s claim settlement ratio if you consider purchasing a family health insurance plan.
- You can add new members easily to the policy
If you have a family floater plan, adding additional family members, such as a new spouse, a kid, or a parent, to the policy is simple. Even though many health insurance plans have a cap on the number of individuals, you can enrol. This is still a fantastic choice for smaller families with younger children.
Family health insurance have several advantages, so it’s essential to fully understand them before choosing one. Keep an eye out for extras like complimentary health checks, and free 24-hour medical advice over the phone, among many others. For example, a family floater plan would suit you the best if you are married and your parents are considered dependents. In addition, with an efficient claim resolution procedure, purchasing and renewing are simpler.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.