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A family floater plan is a type of health insurance policy that provides a fixed sum insured for all members of your family. You can include immediate family members like your children, spouse or parents under a single family floater health insurance policy. You only have to pay a single premium which is quite cost-effective.
Mentioned below are some of the prime benefits of a family floater health insurance:
You can avail tax benefits on the premium paid for a family floater health insurance policy up to a limit of Rs 1 lakh in a financial year, as specified under Section 80D of the Income Tax Act of India, 1961. Below is a detailed table showcasing the deductions that can be claimed u/s 80D regarding the premiums paid towards a family floater plan:
| Particulars | Deductions w.r.t. premium paid for a family & self | Deductions w.r.t. premium paid for parents | Total deduction limit |
|---|---|---|---|
| Self & Family (below 60 yrs.) | Rs 25,000 | NA | Rs 25,000 |
| Self & Family + Parents (below 60 yrs.) | Rs 25,000 | Rs 25,000 | Rs 50,000 |
| Self & Family (below 60 yrs.) Parents (above 60 yrs.) | Rs 25,000 | Rs 50,000 | Rs 75,000 |
| Self & Family + parents (above 60 yrs.) | Rs 50,000 | Rs 50,000 | Rs 1 lakh |
Should every family get a family floater plan? The following section will highlight who will find a family floater health insurance policy to be a suitable option:
Generally, family floater insurance plans are better suited for younger families where the members are healthy. It’s a cost-effective and convenient option for every family member, especially when compared to single health insurance policies.
Here, you need to take into consideration an important point. While a family floater policy is a good option for a young family, it is not considered ideal for senior citizens. Aged parents may tend to fall ill frequently and require specialised medical care. These expenses may not be covered by a family floater plan plus the premiums would be higher as well.
While the eligibility criteria will vary from one insurer to another, the basic criteria underlining who can buy a family floater plan are as follows:
The following points will help you choose the best family floater plan:
First and foremost, you must have a clear understanding of what you require from a family floater plan. Once you’ve narrowed down your needs, you can shortlist the insurance plans you can choose from. Have clarity regarding how many people you wish to include in the plan. If there are senior citizens in your family, getting separate health insurance policies for them will be a wise decision.
Don’t forget to take into account pre-existing illnesses or other health conditions of your family members as that can affect the premium amount and sum insured significantly.
When you choose your sum insured, remember that it will be shared among all family members. So, the sum insured you choose must be high enough to cover all the family members. It should also be enough to cover the medical bills if more than one member has been hospitalised at the same time.
Don’t forget that if you opt for a higher sum insured, you’ll end up paying a higher premium.
Check the policy inclusions (what’s covered in a family floater plan) minutely to see if it fulfils all your needs. It's important to ensure that the family floater plan covers ambulance charges, in-patient hospitalisation, day-care treatment, pre and post-hospitalisation, room rent, ICU charges, etc.
Policy inclusions are bound to differ from one policy to another. So, you must compare family floater insurance policies before choosing one.
This is one of the most significant factors to consider when you choose a family floater plan for health insurance coverage. The claim settlement ratio indicates the number of claims an insurer has successfully settled as against the total number of claims that have been made.
It’s always advisable to choose an insurance company with a high claim settlement ratio. It’s also quite important to check whether the claim settlement procedure is smooth and hassle-free.
Check whether the family floater plan offers optional benefits in the form of add-on covers or not. Riders, waiting period waivers, lump sum for diagnosis, personal accident cover, and daily hospital cash are some of the add-on benefits that family floater plans typically offer. However, it will vary from one health insurance company to another.
You have to pay an additional premium to avail these additional benefits. To choose the best add-on, check your family’s medical history and assess the overall health risks to understand which add-on covers are necessary.
The following will usually not be covered by a family floater health insurance policy:
Nowadays, you don’t have to physically visit an insurance company’s office to purchase a health insurance plan for your family. Technology has made it possible to buy a plan with a few clicks from the comforts of your home.
Check the reasons why you should opt for the online purchase of family floater plans:
ARN No: Dec23/Bg/15K
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