The cost of medical treatment has been skyrocketing for the past few decades. At such a time, having no medical cover that helps tackle unexpected ailments is like throwing caution to the wind and is not advisable. There is a growing importance of health insurance in the country for these scenarios. Health insurance plans build a financial backup for times when you least expect a medical emergency to strike, dwindling your financial stability. In addition, they also help to have mental peace having one less thing to worry about when it comes to the health of your loved ones.
To secure the health of your family is critical in present times. With growing instances of lifestyle ailments due to different reasons, medical coverage has become paramount. There are different types of health insurance plans that are available. Each of them caters to different needs. One such policy that helps secure all your family members at once is the family floater policy.
Meaning of family floater insurance plan
A family floater plan extends the benefits of an individual health cover to all the policy beneficiaries, i.e., your family. All these beneficiaries are covered under one blanket policy. In addition, these plans are cost-effective since one premium is required to be paid to manage the medical coverage for all your family members.
Working on a family floater plan
The family floater health insurance works through a single policy offering coverage to all the family members. The sum insured is available for all the beneficiaries, thereby each member enjoying the entire sum assured without any restriction. The insurance company compensates for the treatment when your family member needs it subject to policy terms during a policy tenure.
Benefits of a family floater plan
- The principal benefit of a family floater policy is that one approach can manage health insurance coverage for all your family members. This is quite simple compared to working multiple plans with varying features for different age groups.
- Compared to a senior citizen’s health cover, a family floater plan is an affordable alternative to secure health insurance for older people.
- Some health insurance companies also offer maternity benefits that can be useful to manage childbirth costs along with other maternity expenses.
- Akin to other health insurance plans, tax benefits can be availed under Section 80D of the Income Tax Act.
- Adding new members is more spartan and an amendment of coverage as per requirement.
- For a family where all members are young, multiple claims are a rare scenario, and thus the entire sum assured is available for all members.
Some downside of family floater plans
- The most apparent limitation is the multiple claims leave thinner sum assured for other members in case of ailments.
- The premium for such policies is based on the oldest family members and thus higher than an individual plan for young beneficiaries.
- Some plans can be renewed only up to the full entry of the eldest family member, thereby limiting the coverage for all other members. However, now many policies offer lifelong renewability too.
With the above details covering family floater plans comprehensively, make the proper selection of a policy. Also, do not forget to compare before your shop. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.