Earning money is important but nothing is more important than the health and happiness of your family members. That is why it is commonly said that health is wealth. And if money cannot buy you happiness, it can at least ensure your family gets quality healthcare.
So, let’s discuss the importance of health insurance family plans.
Individual plans for each family member
When you plan to buy health insurance for your family members, you have the option to buy a health insurance policy for each and every member of the family. The premium for each policy would depend on factors such as the individual’s age, medical history, health conditions and risks. This option can be quite costly since you would have to pay premiums for each insurance policy.
Family floater plans
On the other hand, you could instead opt for a family floater plan. As the name indicates, this is a plan that offers health coverage to the entire family under a single insurance policy. Think of it as an umbrella that provides medical coverage to all the family members. And the sum insured can be used for medical treatments of any family member as and when required.
Who is covered in a family floater plan?
A family floater plan generally covers the following set of people:
- The primary insured
- Dependent children (2-3 children)
However, you can also find policies that extend coverage to other family members as well. This can include the primary insured individual’s parents too.
How does it work?
Imagine that a family of four (father, mother and two children) take a family floater plan. This plan offers a financial coverage of Rs. 5 lakh per annum. Now, the entire family can together claim this amount for medical purposes.
Why this is better than individual plans
A family floater plan offers a great advantage over individual health plans.
Let’s take the example of the above family.
- Individual plans:
The father (who is the breadwinner) takes out four individual health insurance plans for all four members of his family. Here, the maximum cover for each policy is Rs. 4 lakh. This means that the total coverage for the family is Rs .16 lakh. And in case the claim for any policy goes beyond Rs 4 lakh, the additional amount has to be borne by the family.
- Family floater plan:
Let’s assume that the father takes out a family floater plan with a cover of Rs 15 lakh. Here, unlike the individual policy, the total amount of Rs 15 lakh is available to the whole family. Imagine that one of his children falls sick and he requires an emergency surgery. The cost of the surgery is Rs 7 lakh.
Under the family floater policy, the expenses of the child’s surgery could be met comfortably. In addition, the other family members can still avail the remaining Rs 8 lakh for medical expenses during the year.
This means that for a lower premium, you can get a better financial coverage.
To sum up
A family floater health plan can be very useful to meet medical expenses year after year. With this policy, all members come under a single plan and the amount can be used by any family member as and when required.