Family floater plans: A financial safeguard for the whole family
It’s time for the Sunday evening drive with the family. As you turn the key in the ignition, the dashboard blinks. The car is reminding you to fasten your seatbelt. You check in on your spouse in the front seat. Then you tell the kids to stop jumping in the backseat. You wouldn’t want them to hurt themselves while you drive.
There are so many health insurance products available today, so many features to choose from, so many choices to make. As you look from one health plan to another, you tell yourself: There’s got to be an easier and better way.
There is, it’s the family floater plan.
Benefits of family floater plans:
If you have family health insurance on your mind, family floater plans are your best bet. Here’s a look at their benefits:
Convenient: You get health insurance for the full family in a single policy. Make a single premium payment every year and it is done. Managing one policy is so much simpler than handling multiple individual health plans.
Affordable: Family floater plans fetch you a higher sum insured for a lower premium. What if you were to get individual policies with the same coverage for each person? Your total premium outlay would increase.
Possibility to extend coverage: You can extend the health insurance coverage to your children and parents. Some plans allow you to include in-laws and siblings as well. But different plans have different caps on the number of insured members. So, check if you meet the eligibility criteria.
Financial security: Having health insurance for the whole family is good for your finances. It reduces your out-of-pocket expenses when a family member needs hospitalisation.
Restoration benefit: It could happen that one family member exhausts the entire sum insured in a year. Should another family member need healthcare later that year, the insurer may restore the sum insured. This benefit is available for a fee in some policies.
Tax benefits: Under Section 80D, you could save income tax on premium payments of up to Rs 25,000. This is for premiums covering yourself, your spouse, and your children. You get an extra deduction of Rs 25,000 on premiums paid for parents. The deduction rises to Rs 30,000 for those above 60 years.
Greater coverage: Say, your family floater plan has a sum insured of Rs 10 lakh. This amount will be available to each insured person. Getting individual policies with such a high sum insured per person would be much more expensive.
Things to keep in mind while selecting family floater plans
- Your family’s health insurance needs. Consider the health conditions of every family member. Look at your family’s medical history as well. This will help you determine the right amount of coverage.
- The benefits on offer. Shortlist the family floater plans that meet your needs. Factor in the benefits that are important to you. See if the plan provides a daily cash benefit during hospitalisation. Check the conditions for coverage of pre- and post-hospitalisation costs. Planning to have a baby soon? Go for a plan with a maternity cover.
- Is it affordable? A higher sum insured is better—but only if you can afford it. Assess your income and expenses. Then use a health insurance premium calculator to compare quotes from different insurers. Choose a plan that does not put an undue financial strain on you.
- Who to include. If you have elderly parents, avoid including them in a family floater plan. Their advanced age could increase your premium costs and reduce your coverage.
- The right insurer. Choose an insurer that has a high claim-settlement ratio. Also, check customer reviews to see which insurers provide better service.
- The fine print. All health plans come with waiting periods, exclusions, and sub-limits. So, read up on the terms and conditions before selecting a policy.
A family floater plan is a convenient and affordable way to safeguard your family’s health. Given the exorbitant costs of medical care today, getting health insurance is a bit like fastening your seatbelt. Your loved ones get the healthcare they need and you minimise your out-of-pocket costs. It is an important step to protect your family’s health and their financial future.