Family Floater Health Insurance

Family is our biggest treasure. Protecting our family members during the many adverse consequences of life is everyone’s priority. Buying health insurance is a sensible way to financially secure family members’ healthcare requirements; should they have to face health concerns. Whether sudden emergencies or planned medical treatments, health insurance is one of the best solutions to medical expenditure for family members.Many people wonder, ‘should I buy a family health insurance plan or personal health plan?’ or ‘should I buy separate medical insurance for parents’? And most times, they find the answer to be confusing and complicated. In reality, however, it’s a relatively simple choice to make. Every type of health insurance plan has benefits and plus points.

As it is popularly known, a family health insurance plan or family floater plan offers coverage to all family members under one umella policy. Each member who is a part of the health policy is insured for the entire sum insured of the particular policy and is eligible to the whole sum insured.

Most family plans offer coverage for self and spouse, children, and parents. Many insurance companies also offer family plans that include coverage for in-laws, siblings, and grandparents. Different insurers may offer different kinds of family floater plans.

In a family health insurance plan, the sum insured can be used by all the members if needed or any members. For example, if a family of four has a family floater plan of Rs 10 lakhs and one member of the family needs the entire ten lakhs to cover a medical emergency, the whole amount can be availed of the full limit by that member. Conversely, if any of the members use a sum of say Rs 4 lakh, the remaining Rs 6 lakh.

Why is family health insurance a necessity?

The rising rates of inflation is a crucial concern for families. Add to it the increasing incidents of critical illnesses, lifestyle diseases, and uncertainties related to health. Families have members of all age groups – young and old. While the young may be healthy, accidents and health uncertainties can knock on anyone’s door. Older people are more vulnerable and have a high probability of hospitalization as they age. In such conditions, health insurance is a necessity. Here are a few reasons it is a must-have.

Health emergencies

Families have members of all age groups who might require different types of medical treatments. Health emergencies that cost a huge amount can disturb the financial stability of families. In India, a majority or the population does not have health insurance or they have an inadequate sum insured.

During times of health emergencies, people use their savings to leave them bankrupt, disrupt their future plans, or borrow money from friends and families that increase their debts. Debts can disrupt financial plans adversely. At times, debts due to medical expenditures can disturb people’s financial stability for years to come.

Health insurance can help safeguard families from such emergency expenses, debts, and chances of eating into their savings. Family floater health insurance can offer a large sum insured to each family member under one insurance policy.

Financial safety

Family health insurance ensures financial safety during medical emergencies of any of the family members. Families can face health emergencies of different kinds – children meeting with accidents, adults falling sick and elders developing critical ailments. Moreover, lifestyle and unhealthy living can increase diseases’ chances to family members in all age groups.

Medical expenses can significantly impact a family’s finances and financial plans. Health insurance can ensure financial safety. By paying nominal and affordable premiums at pre-defined periods, families can make health insurance a part of their financial plans to not have to bear huge medical expenses. Health insurance can work as a protective shield against medical costs.

Inflation

If there’s one constant thing, it’s inflation. Inflation, not just in the overall economy but also in the medical industry. The costs of medicines and treatments has seen a consistent increase in cost. Moreover, with new technologies being introduced and the medical industry quickly adapting new technology, it is causing a faster inflation rate.

One way to combat inflation – health insurance. Certain health insurance types have fixed premiums, which means the premium amount would not increase even if there’s inflation. Inflation has a direct effect on the medical bills that one would have to pay. A medical treatment that costs a few thousand could cost lakhs after a few years. Health insurance with a sufficient sum assured can ensure families can fight inflation without stress and financial worries.

Family Floater Insurance

Types of family health insurance

Critical illness health insurance

Critical illness insurance plans are specially designed to provide financial coverage against critical illnesses. Diseases such as cancer, diabetes, cardiovascular diseases, hypertension, kidney failure, and paralysis are included in critical illness plans. Usually, the sum insured is paid in a lump sum by the insurer. The premium for critical illness plans is usually on the higher end as the risks of life and high expenditures are higher in these ailments. Policyholders with critical illness are risky for the insurer and hence insurers are cautious when underwriting these plans. These plans usually have lesser flexibility for add-ons, compared to general comprehensive insurance plans. These plans do not cover medical expenses arising from other health issues not related to the critical illness.

Medical insurance

Medical insurance plans are comprehensive plans that provide coverage for hospitalization expenses. Mediclaim insurance is designed to cover medical costs arising out of medical emergencies up to the sum insured. Mediclaim policies do not cover critical illnesses. Mediclaim insurance plans offer coverage for hospitalization – in-patient, pre and post hospitalization, and day-care treatments. It offers a lump sum cover towards hospitalization expenses. Mediclaim plans are available for a specific tenure. Mediclaim insurance policies are cost-effective, as typically, the sum insured is less, and the term is limited. Due to these two factors, the premium of Mediclaim plans is low.

Benefits of buying health insurance plans for family

• Stress-free hospitalization cover:

  Many people, especially those with a large family of dependents, face regular and frequent medical expenses. Having a family health insurance plan could provide financial coverage in the event of medical emergencies that lead to hospitalization. With family health insurance, one can avail of quality hospitalization without financial stress.

• Add new family members at ease:

  Family floater plans offer greater flexibility than other types of health insurance plans. New family members can be easily added to family floater plans depending on the plan and clauses mentioned in the plan. Affordable premium: Family floater plans are cost-effective and more affordable compared to individual plans. In a family floater plan, all the members are insured for the plan’s total sum assured. This means all members can avail of coverage up to the sum insured or balance sum insured. A family floater plan premium is cheaper than paying a premium for each family member’s individual plans. By having a family plan, you will not need to pay different premiums for every family member.

• Health insurance cover for parents:

  Family health plans are a good way to ensure coverage for the entire family, including parents. While most family floater plans have a limit of 4 or 6 members, some plans even offer coverage for extended family members such as parents-in-law, siblings and grandparents. In some plans, the count can go up to 16 members in one policy. Often, large families in India find themselves in financial stress due to the burden of expenses that occur due to the medical and healthcare needs of different family members, especially senior members or accidental medical care. In such cases, if families have limited budgets to spare for healthcare, a family floater insurance can be a savior – financially and for safeguarding family members.

• COVID-19 health insurance for the family:

  With the risk of the current coronavirus, family floater health plans ensure that every member is protected against expenses that come with COVID-19.

• Additional benefits:

  Family floater plan is an easy way to protect the entire family’s healthcare needs. For large families, it is a more cost-effective solution compared to individual plans. Family plans also offer additional benefits such as maternity coverage, coverage for newborn babies and more.

• Tax benefits:

  Family floater plans provide tax deductions under Section 80D of the Income Tax Act. Families can avail up to Rs 1 lakh tax deductions when tax benefits of all family members are combined.

Things to consider while buying a family health insurance plan

• Coverage:

  Health insurance is an investment, but it could turn into an expense if not purchased with care. It is, therefore, important to first assess the healthcare needs of all the family members. Young couples must consider family planning and maternity health insurance. Elderly parents, young children, siblings, and senior grandparents – all have different healthcare needs.

• Sum assured:

  The sum assured or the coverage provided under a family health plan is essential. Take into consideration the current healthcare expenses, the future probable and sudden accidental costs. Don’t forget to factor in inflation. In India, medical inflation accounts for the highest share in the overall inflation. When buying a family floater plan, it is vital to determine a suitable coverage amount sufficient to cover huge expenses.

• Flexibility to increase sum insured:

  Family health insurance policies offer flexibility to increase the sum insured. Hence, if a family wants to increase the sum insured after buying the policy, they can do so. This flexibility also allows the family to be free of stress and makes the process of health insurance much more manageable.

• Cashless hospitalization:

  Cashless hospitalization can ensure that families do not have to touch their personal savings money at all. With the cashless claim option, the insured under the family floater plan can receive medical treatment without paying for the expenses to the hospital. In a cashless claim, the health insurance company directly makes the payment to the hospital. However, this facility is available when the insured chooses one of the hospitals from the insurer’s approved hospital network.

What is covered under a family health insurance plan?

• In-patient hospitalization:

  Family health insurance plans offer coverage for in-patient hospitalization expenses – medical expenses related to treatments where a policyholder has been hospitalized for more than 24 hours. The coverage would include tests, medicines, doctor’s consultation fees and more.

• Daycare treatments:

  Certain types of medical treatments require a few hours and can be completed without the need for hospitalization. These are called daycare procedures. The expenses towards these treatments are called daycare expenses. Family floater plans offer coverage for daycare treatments.

• Pre & post hospitalization:

  To treat specific diseases, policyholders might incur expenses before and after hospitalization, such as doctor’s visits, ambulance, medicines, diagnostic tests and more. Family health insurance policies offer coverage for pre and post-hospitalization.

• Hospital cash:

  Hospital cash is a feature that offers daily cash allowance. Many family floater plans offer pre-specified hospital cash as part of the policy.

• Ambulance charges:

  At times, policyholders may require to rent an ambulance to get to the hospital and back home. Family floater health plans offer ambulance coverage.