1. Health insurance: Premium for family floats cheaper than for individual policies

Health insurance: Premium for family floats cheaper than for individual policies

Premium for family floater cheaper than that of individual policies for each member l For my family—myself (42 years), wife (36 years) and daughter (8 years)—should I opt for a family floater or individual policies of `5 lakh each?

New Delhi | Published: April 10, 2017 6:17 AM
With medical expenses skyrocketing, being adequately insured is need of the hour. Seeing the high medical treatment costs, `5 lakh sum insured might not be sufficient at the time of an unforeseen medical event in the future.

Premium for family floater cheaper than that of individual policies for each member l For my family—myself (42 years), wife (36 years) and daughter (8 years)—should I opt for a family floater or individual policies of `5 lakh each?

—Gurdip Kohli

With medical expenses skyrocketing, being adequately insured is need of the hour. Seeing the high medical treatment costs, `5 lakh sum insured might not be sufficient at the time of an unforeseen medical event in the future. A health plan with comprehensive coverage of at least `10 to 15 lakh, minimal or no sub limits coverage for family and extended families and quality provider network is ideal.

You can opt for a family floater of `10-12 lakh which will provide a common sum insured which can be shared by all family members insured under the policy. If there’s a claim by any of the members, the sum insured would reduce by the claimed amount and the remaining amount would be still available under the policy for further claims in the policy year. Whereas, under an individual policy, each individual will have a separate sum insured. Premium for family floater would be cheaper as compared to individual policies taken by each family member.

l If I do not make any claim, will my premium still increase on renewal?

– V S Raju

The rise in premium depends on several factors like increase in customer’s age and medical cost inflation. There are certain companies which increase their premium as per age band, once in four or five years. For example, premium rates for 30-35 years age band remain constant, but beyond 35 years there is a steep jump in the premium. Whereas, a few other companies gradually increase the premium every year so that the customer does not feel the strain. However, if customers opt for long-term health policies of two or three years, the premium does not change due to revision in product during the policy tenure.

The writer, Ahish Mehrotra, is MD & CEO, Max Bupa Health Insurance. Send your queries to fepersonalfinance@expressindia.com

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