In a Family Floater plan, on paying a single premium amount, the sum insured (coverage) can be utilized by any member of the family.
Covid-19 led hospitalization is resulting in hospital bills running into a few lakhs, putting huge pressure on an individual’s wallet. Individuals without any health insurance policy were hit the most as they had to arrange funds to pay the hospital bills. Even for those who hold health covers, the coverage amount was not sufficient to meet the hospitalization cost entirely. It is, therefore, imperative to hold adequate health insurance cover for self and family members in order to avoid dipping into the savings to meet the medical expenses.
If one is not in a position to buy a health cover for a high amount for all the family members, the Family Floater plans can be opted for. In a Family Floater plan, on paying a single premium amount, the sum insured (coverage) can be utilized by any member of the family. The premium is generally arrived at as per the age of the eldest family member. Such plans suit young families, especially millennials with small kids.
“This option would provide him the benefits of covering the entire family at comparatively low premium rates with sufficient coverage options. Since the policy buyer is the oldest one in the family but still a millennial, there is a low risk of pre-existing diseases or age-related health concerns. Also, since the family is young, the premium rates would be comparatively low and he can decide on the insurance plan that best fits the family’s medical needs and his budget” says Rakesh Goyal, Director, Probus Insurance.
While applying for a health cover policy, it is important that you declare existing health conditions to the insurance company in detail. “Some of the common watchouts for both online or offline health insurance buyers is that one must disclose all the information about the pre-existing diseases/illness or any other required information without any alteration or discrepancies. Correct information must be provided to the insurer in order to avoid any issues during the claim process. Disclosure of incorrect or false information may also result in rejection of the claim,” adds Goyal.
A Family Floater Plan for a family of 4 for Rs 10 lakh coverage will on average cost between Rs 1700 per month and Rs 2200 per month.
Also, note that the insurer may not cover the entire hospital bill. One of the important exclusion is the cost of hospital consumables that the insurance company may not cover. Also, in order to keep the claim process smooth, always go through the policy document to see what all is covered and what is not covered.