A family floater health insurance policy is an insurance policy under which your immediate family members are covered against health contingencies by paying a single premium for a common sum insured. It is a cost-effective way to shield self, spouse, and dependent children (up to three) against a sudden health crisis, which can create a huge financial upheaval as well.
Says Siddharth Singhal, business head – health insurance, Policybazaar.com: “A family floater health insurance can secure your family’s health in one go, and you need not worry about keeping a track of individual health insurance policies.”
For instance, if a customer buys a family floater plan with a Rs 15 lakh cover, then any of the family members can use any amount of the sum insured for coverage.
Here are a few important things to keep in mind while buying a family floater health insurance plan
How To Choose A Family Floater Health Insurance Plan: For buying an effective family floater policy, it becomes necessary to choose a policy with a higher sum insured range, as the whole family is covered under the same plan.
Singhal suggests looking for a plan, which can accommodate more family members with less restriction on their age. Also, one should look for policies providing unlimited restoration of the sum insured, so that even if one member uses the sum insured, other members still have coverage up to the sum insured.
Another factor to check up on is capping limits on room rent and ICU charges in hospitals.
There are certain floater policies that apply co-payment, where the policyholder has to share the cost along with the insurance company at the time of making the claim.
Thus, one should focus more on better coverage and benefits and lesser restrictions, while selecting a policy for the family.
According to Singhal, it’s best to check the terms and conditions of the policy before actually purchasing it.
How To Cover Aged Parents: The premium of a family floater policy is based on the age of the eldest member in the family.
Needless to say, elderly parents, are at a high risk of unannounced medical emergencies. In case one includes elderly parents in the family floater plan, then it will increase the premium for the expected coverage of the entire family.
Says Singhal: “It is advisable to have a separate comprehensive health insurance plan for aged parents or senior citizens which can ensure them relentless and high-quality treatment, if required. There are many health insurers, which have launched health insurance plans for senior citizens packed with features at pocket-friendly prices, specifically catering to their needs.”
Agrees Biresh Giri, executive vice president and appointed actuary, ACKO: “While a family floater policy is beneficial, it may not be ideal for senior citizens. This is because senior citizens tend to have more medical needs and may require specialised treatment and care, which may not be covered under a floater health insurance plan. It is best to have a separate cover for senior citizens to avoid high expense treatment costs in future. Individuals with corporate health policies should have parents/senior citizens added as dependents. Further, the family can opt for a top-up policy for them.”