What is Family Floater Health Insurance?
A family floater health insurance is a type of insurance policy that covers several family members under a single umbrella, ensuring that all family members get benefits from a common pool.
Ensuring the safety of loved ones is always one of the top priorities for any individual or family. Taking care of the family's financial needs, especially during the event of an unfortunate accident or illness is critical. Eating into one's personal savings to bear the cost of medical expenses is likely to put an individual under a great amount of financial strain.
How to Choose Best Family Floater Health Insurance?
What separates a family floater cover from an individual health insurance plan? Here is a list that will illustrate the difference between a family floater and individual health insurance policy:
- In an individual health insurance, the premium is calculated based on an individual's age and the insured amount, whereas in a family floater plan, the premium is based on the eldest member of the family.
- The premium varies from person to person in an individual health plan, and discounts are generally given if more than one member is insured simultaneously. In a family floater plan, however, the premium is the same for all members.
- In a family floater insurance plan, the sum can be availed by any member of the family. Individual health insurance, on the other hand, is only applicable to the specific person insured.
We, at Religare Health Insurance, offer some of the best family floater health insurance policies, and you can pick the one that suits you best from our wide range of options.
Disadvantages of Family Floater Insurance Policy
Although there are numerous benefits of opting for a family floater insurance policy, there are certain disadvantages that are associated with it.
- Including older family members in a family floater mediclaim policy can significantly increase the premium since it would be calculated based on the oldest member under the cover.
- The older members under the plan might exhaust the entire insured amount since they are more likely to fall ill, and there is a chance that there will be no sum remaining for the other members of the family.
- The policy can only be renewed until the oldest member falling under the policy reaches the maximum age for renewability for that particular company. In such a scenario, the other members will have to take a brand new policy and will have to forego the benefits of the family floater policy.
Premium on Family Floater Mediclaim Policy
The following factors affect the premium on a family floater health insurance policy:
- Age: Young policyholders are less likely to face health issues and have much lower premiums as compared to their older counterparts.
- Height and weight: Body mass index, calculated using weight and height may affect the premium since it is an indicator of good health.
- Family medical history: If there is a history of severe ailment in the family, it may lead to increased premium since the member is also likely to suffer from that ailment.
- Consumption of injurious substances: People who regularly consume alcohol and smoke are likely to pay higher premium than those who don't partake in such activities.
Selecting the Best Family Floater Health Insurance Plan
Factors to consider when choosing a family floater health insurance policy:
- Does having a single premium for the entire family result in a higher premium for the younger members of the family, especially when compared to individual health insurance?
- Can the older members of the family extend their insurance past the renewability age, considering that the insurance plan has been uninterrupted?
- Does the insurance policy have any sub-limit placed on it? Regardless of the insured amount, there may be a limit that does not allow reimbursement of the medical expenses in one go.
- Where do you live? Medical expenses are much higher in metro cities as compared to small towns, and the insured amount must be sufficient to cover expenses.