A family floater policy or health insurance plan covers several members of a single family for a lump sum by paying a single premium once a year. In the event of multiple illnesses in the family, the sum assured can be divided among family members and various claims accepted.
It is less expensive than purchasing individual policies in the names of family members. Most Indian health insurance companies provide family floater policies.
Key features:
- One of the most critical aspects of family health insurance plans is that the sum assured can be extended to cover multiple members of the same family if necessary. Depending on the primary policyholder’s healthcare risk tolerance and location, they may choose a higher or lower sum assured, reflected in the premium.
- Covered members of a family floater may seek cashless hospitalisation if they notify their insurer within 24 hours of being admitted to a network hospital. In some circumstances, such as an emergency hospitalisation, an accident, or admission to a non-network hospital, insurers may permit treatment first and reimbursement later.
- For each day of hospitalisation, the policy may include room rent up to a certain amount per day.
- Some family floaters operate on a co-pay basis, in which the insurer pays a percentage of the cost, and the insurer pays the rest. This typically has a lower premium because the insured pays a portion of the hospitalisation costs.
- Most companies request a medical examination if the sum assured is higher; any covered members are older or have a medical history. Some insurers also provide their policies online, and, with a few exceptions, a declaration of fine health by the insured does not necessitate any medical examinations.
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Understanding floater family health insurance:
- What exactly is floater insurance for families?
Family health insurance plans that cover multiple family members for a single premium. As a result, many members of the same family can be substituted for medical emergencies at a low cost.
- How many family members can be covered?
The primary insured, his spouse, and children are usually the only family members covered by health insurance. Some insurers, however, allow coverage for parents, siblings, and other relatives under the same policy.
- What happens if a member’s treatment exceeds the sum assured?
Some companies base the hospitalisation limit solely on the amount assured in a calendar year. Nonetheless, some insurers provide an automatic restore/top-up facility when the sum assured is reached.
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- Is there a premium reward like cumulative bonus?
Yes, certain insurers offer cumulative bonus up to a certain amount. If there is no claim on a family floater policy, the premium is reduced the following year, according to the policy wording.
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The benefits of a family floater health insurance plan:
The following advantages come with family floater insurance:
- Affordable insurance:
Family floater policies provide the benefit of a sum assured that can be shared among family members and can be helpful because the chances of all members becoming ill in a calendar year are low. If there are multiple illnesses in the family, the sum assured can be divided among the members. However, the premium must be paid only once and is less expensive than purchasing individual policies for each family member.
Advice: It is wise to use a health insurance premium calculator online to compare prices with add-ons and choose the affordable premiums accordingly.
- Tax advantages:
Premiums paid for Family Floater are tax deductible under section 80D of the Income Tax Act. Deductions for health insurance premiums for self, spouse, and children are allowed up to Rs. 15,000. If senior citizens are covered, they are eligible for an additional Rs. 20,000 exemptions.
This means that by purchasing family floater insurance for his immediate family and senior parents, he can save up to Rs. 35,000 in taxes.
Advice: For clarity on the same, use health insurance premium calculator online to find the specifics of your planned premium.
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* Standard T&C Apply
** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.
## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
