A Definitive Guide on Family Health Insurance and Family Floaters Plan
In an era of variable complexities, insuring your family against health exigencies can turn out to be an extremely challenging task. Not only are you required to purchase a plan that covers different types of medical expenditures, but you also need to seek products which specifically meet your insurance requirements in terms of tenure, risk, and pricing.
Therefore, it comes as no surprise that the popularity of both, family health insurance scheme and family floaters plans is increasing day by day.
Nevertheless, when it comes to choosing either one of these family medical insurance products, most people end up getting thoroughly confused. This is primarily because although both plans sound quite similar, they have several distinctive features which can impact your overall health investment portfolio remarkably.
Therefore, while taking your pick from amongst a standalone family health insurance policy or a collective family floaters plan, you should be aware of the following two distinctions:
To put it simply, a family floater plan provides a single insurance cover for the whole family whereas, a family health insurance provides a different policy for each family member. This can be better understood with the help of an example. Let us consider that you have purchased a floater plan for an amount of Rs. 5 lakh. In this case, the insurance company would be liable to pay your entire family a total of Rs. 5 lakh, irrespective of who contracts an ailment. On the other hand, if you have bought a family health insurance of Rs. 5 lakh for every member of your family, your total coverage would amount up to Rs. 20 lakh for a family of four, and Rs. 25 lakh for a family of five!
The premium payment and overall pricing of a family medical insurance completely depends on the risk factors involved. For instance, a family floater plan will calculate the potential health risk of the entire family in a collective way. So, if you have a family member aged 60 or above, the total risk profile of your family would automatically increase, thereby raising the cost of buying insurance. Contrarily, a family health insurance plan will take into account the health risks associated with each family member separately. As a result, even if there are high-risk individuals in your family, the cumulative insurance payments would be significantly lower. This situation, however, would veritably reverse if you have low-risk individuals like children in your family.
How to Choose the Best Plan
In order to make a credible choice between both these forms of family medical insurance plans, you need to read the fine print of the specific policy that you intend to buy. Regardless of whether it is a family health insurance scheme or a family floaters plan, it should offer:
- Pre and post hospitalisation cover.
- Daycare benefits.
- Ambulance and transport cover.
- Critical illness cover.
- Cashless claim settlement.
- Hassle-free reimbursement.
- Lifetime renewal.
More so, the exclusions, if any, should be minimal. Even though both these plans allow you to save money while reaping a plethora of tax benefits, you must ensure that the policy you buy suits your particular requirements in the best possible way. The plan you opt for must offer the greatest coverage within an affordable pricing limit. However, under no circumstance should it compromise with the medical umbrella that extends over your whole family.
A family medical insurance can indeed prove to be a good way of making sure that you get to explore different avenues without having to worry about the costs that this would entail. In other words, with a family health insurance or a family floater plan to provide protection, the road to traverse a happy, healthy, and fulfilling life becomes all the more easy!