As health insurance becomes a necessity considering surging medical costs and a rise in lifestyle-induced diseases, many people have turned to family floater health insurance – securing all their loved ones under one umbrella. Although individual plans have been the more popular choice, the shift to family policies has been mainly motivated by their affordability. So, what is a family floater health care plan?
What is Family Floater Health Care?
Family floater health insurance is a comprehensive policy that provides medical cover to all family members under one plan and premium. Moreover, the sum insured is shared by all the policyholders, and you can make multiple claims until the coverage amount gets exhausted. Additionally, buying floater plans reduces the hassle of buying individual policies for your spouse, children, or parents, making it a worthy and pocket-friendly investment.
Here’s an example of family floater health insurance: say you buy a plan with a sum insured of $1000 that covers five members. If one family member gets hospitalized due to an illness and the bills amount to $400, you and the rest of the family will still be left with $600 that can be used any time during the policy period.
What Are The Benefits?
Now that we know how a family floater plan works, let’s look at some of its benefits:
- Tax Deductions – If you buy a family floater health insurance, you can claim income tax deductions up to $700 as the premiums paid for health policies are exempt from taxes as per section 80D of the IT Act.
- Pocket-Friendly Premiums – One major advantage of buying a family floater policy is that it is quite affordable compared to individual plans. As a result, you can secure all your loved ones against medical emergencies without worrying about their financial implications.
- Cash-Free Hospitalization – Today, most family floater health insurance plans come with cashless hospitalization features, as per which your medical expenses are paid by your insurer to the hospital directly. You don’t have to wait for any reimbursement or pay anything from your pocket.
- Wide Health Coverage – A family floater policy offers coverage against a range of medical expenses, including in-patient hospitalization, pre & post-hospitalization, domiciliary care, daycare, AYUSH treatments, ambulance fees, maternity cover, and much more.
- Extended Renewability – By buying family floater health insurance, you can secure you and your loved ones for a lifetime, as most plans come with the option of lifelong renewals. Plus, you don’t have to go through the hassle of buying a policy ever again.
What Should You Consider Before Investing in Family Floater Health Insurance?
Here is a list of things you must consider before purchasing a family plan:
- Policy buyers must check the policy’s co-payment clause, which requires you to pay a share of the total claim amount. Regardless, it is best to choose a plan without a co-payment requirement.
- It is better to opt for family floater health insurance policies offering cumulative bonuses such as the No Claim Bonus so you can get the most out of your investment.
- The family floater plan you select will most likely have a waiting period, so it is essential to check the same and go for policies with zero or minimum wait periods.
- If you plan on growing your family, make sure you purchase a plan that can be easily customized and comes with several add-on covers or riders.
- Lastly, ensure you don’t skip the exclusions list as it can cause trouble while filing the claim or even lead to rejection. Additionally, be sure to read the terms & conditions carefully.
Safeguard Your Loved Ones’ Future
The top five global cost elements that significantly impact health care expenses today include hospitalization, prescription drugs, maternity care, physician services, and clinic & lab charges. While you cannot avoid them, you can buy family floater health insurance as all these services are covered under the plan. However, it is crucial to go for a well-known and trusted insurance provider like Care Health Insurance.