Ramesh is employed by a shipping company in Mumbai. He has a family with 2 children. Recently, one of his children was sick and had to pay hospital expenses. Through this experience, he learns an insurance plan to protect his family from unwanted expenses. What should he choose? He has few options in his hand. Under the traditional insurance plan, he can get an insurance plan for each family member. He can also opt for a family floater plan for health insurance. Do you know what a family floater plan is?
In simple words, Family Floater Health Insurance plan means a single insurance policy for your entire family where you have an overall policy cap but no individual limit for a family member. Let’s understand with an example.
Under the traditional plan, Ramesh could have taken out an individual policy for himself and his wife for Rs 2 lakh plus Rs 1 lakh policy for his 2 children. There is a premium for an individual policy, but imagine an unfortunate case of medical expenses of Rs 1.5 lakh for one of his children, the insurance company will not cover the full cost. So you can understand that Ramesh health insurance is not optimal.
If Ramesh opts for Family floater of Rs 4 lakh, none of his relatives will have an individual limit. In the event of an unfortunate hospitalization, each individual member will be protected for up to Rs 4 lakh subject to the total family limit of Rs 4 lakh per annum. The best thing about Family floater is the premium savings of up to 55% compared to individual policies.
Therefore, there is no doubt that Family Floater offers a better health insurance option. All life and non-life insurance companies offer a family floater policy, so the customer must make a careful decision when selecting a company and insurance plan. Here are some points to keep in mind:
– Insured sum and premium amount
– Coverage for 2 years It will be cheaper to buy a 2-year policy. So watch out for that option.
– Pre-existing illness coverage (normally the plan covers pre-existing illnesses after 2 years)
– Renewal (some insurance companies do not allow renewal after 60 or 70 years)
– Cooling off period (during the first 30 days, the insurance company will not allow any claim except emergency)
– Various benefits – check benefits such as Ambulance Costs, No Claim Bonus, Medical Checkup etc.)