A Family Floater Plan is the health insurance that covers multiple members of the family for a fixed cover. The coverage amount can be used by any or all the members covered under the plan and for any number of times within the time and the cost limit of the policy. The floater policy generally covers the individual, spouse and children. Parents, siblings and in-laws also can be included under this if specified by the insurer.
How does Floater Plan work?
For example, if a family has 4 members and each has individual health plan of 1 lac, then each member of the family is covered for 1 lac limit. In case a member exceeds one lac during a particular coverage period and incurred a total expenditure of 2 lacs, then the additional one lac medical expense is to be bore by the family. At the same time, it is quite possible that the other member(s) of the family haven't used the insurance for the same coverage period. Now, if all members were covered under a single floater coverage of 4 lacs, then the 2 lac expenditure of one member could have been covered by the plan and no added cost (1 lac in this above case) would have been imposed for the family. The floater coverage would have been sufficient and financially easy for the family.
Why should you take it?
It is a good idea many a times to go for a family floater insurance due to several benefits as follows:
- Since it is a single policy covering the entire family, it reduces the hassle of maintaining individual policies
- It gives more flexibility in cases where one or two members need more coverage than the others in the plan
- Inclusion of older parents is possible. This gives a higher available coverage for the older members since younger members do not need the mediclaim as much, still remain covered under the plan
- Maternity and new born coverage is added benefit. These generally comes after a waiting period
- Availability of discounts and incentives on family floaters make these good choice
- Tax benefits on premium paid is an added plus. A max of 55 thousand rupees tax benefit is possible where up to 25,000 rupees is for self and 30,000 rupees is for senior parents
However, a floater plan is not always the best option for the family insurance coverage under these specific conditions:
- If there are some family members who have medical history of high risk health factors like heart disease, smoking or diabetes, including them in the floater plan increases the premium. It is better to take separate insurance for high risk members. The premium for low health risk members floater plan is much moderate.
- The family floater plans are priced based on the highest age of the family member. So if there is much age difference between the senior most member and the other members of the family, it is advisable to get a separate insurance plan for the senior member. The premium of the floater plan that is considerably low for middle-aged or younger members.
- The policy gets void once the senior most member reaches the maximum allowable age limit. This causes the loss of continuous coverage that they got earlier under family floater policy. They also lose their claim history and pre-existing disease coverage benefits from the continuous renewal of the earlier policies.
Selecting the right Floater plan
With easy access to internet, it is comfortable to select a floater plan for the family from the dozens of plans offered by companies. You can also refer to 121policy.com to know more about claim filing and settling process, cashless hospitalization features and the exclusions from claim as offered by the top 25 insurance companies. You can also compare between the various plans. "No Pay Bonus" is the added feature for some plans where incentives provided by the insurer for a claim-free year. You need to check the waiting period for pre-existing diseases in case some member in your plan belongs to that category. They can only claim for those conditions after waiting a pre-specified number of years.
It is a responsibility for you to understand the requirement of your family and choosing a best fit plan that gives the required coverage benefit without compromising on the pocket.