Family pack is what we prefer when we go for shopping.
Be it chips or ice cream—the bigger the pack, the better! After all, we get all the yummy goodness for our entire family in a single pack. It even works out cheaper than buying single packets for everyone. Floater health insurance works the same way. One plan will give you coverage for your entire family.
What is a floater insurance and what does it do?
A floater plan is another term for family floater health insurance. You don’t need to buy separate plans for your family members. With a single plan, you can provide healthcare for your entire family.
How are floater plans different from individual plans?
Type of coverage
Floater plans cover all family members under a single plan. That includes the policyholder, the spouse, and two dependent children. In many cases, the plan may include dependent parents as well. Individual plans only cover a single person under a single plan.
Floater plans work out cheaper than several individual plans. Suppose you want health insurance coverage of Rs 4 lakh for each family member. Getting individual health plans for your family of four could prove expensive. You would pay individual premiums for each policy. But one family floater plan for the same amount would cover everyone in your family. And since you would be paying only one premium, your overall premium outgo would be lower.
Family floater plans make higher covers more affordable. If one family member incurs high medical expenses, they have access to a high coverage.
What are the factors affecting floater plans premiums?
- Age of oldest family member
Ideally, the oldest person should not be more than 40 years old. Older adults are at greater risk of developing health problems and might already have pre-existing health conditions. The chances of a health insurance claim increases with the policyholder’s age. That is why the inclusion of elderly members may result in higher premiums.
- Size of the family
Insurers state that the ideal family size for family floater plans is four members. This ensures that the coverage amount is not stretched among too many people.
Who are the ideal candidates for family floater health insurance?
- Newly-married couples (g. husband and wife aged 28 and 27 respectively): There are minimal chances of medical emergencies for a young couple. Floater plans give higher cover at lower costs than two individual plans.
- A young family with minimal age difference between husband and wife and young children (g. husband and wife aged 30 and 28 respectively with children aged four and two): There is a lower health risk involved in young families. Floater plans are ideal in this scenario.
- Older family with minimal age difference between husband and wife and two growing children (g. husband and wife aged 40 and 39 respectively with children aged 11 and 8): The oldest family member is 40 but there are no major medical conditions. Plus, there is minimal age difference between the husband and wife. The children are still young and healthy.
What to keep in mind
- When you make no claims over a certain period, the insurer rewards you with a no-claims bonus. Such a bonus can reduce future premiums or increase your coverage amount. But, with a floater plan your chances of making a claim increases. That’s because the plan covers more people. So, you could end up losing out on the bonus.
- Family floater plans do not have lifelong renewability unlike individual plans. Most floater plans have a renewability age until 60 or 65.
- Individual plans are ideal for elderly family members or members with critical illnesses. Your risk a very high premium or spending the sum insured amount on one or two family members.
Health insurance is necessary in today’s world. Take time to consider the benefits and precautions of these plans. If it suits your family setup, waste no time. Safeguard your family’s health and finances with a family floater plan.