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Can I get a single health insurance floater policy to cover my parents or in-laws too?

Jan 29, 2018 | 2 years ago | Read Time: 3 minutes | By iKnowledge Team

Your parents and in-laws have crossed 60 and their health issues are growing. Can your family floater plan help?

The short answer is: “Yes, you can.” Some family floater plans allow you to cover up to six dependents. That means one set of parents could be brought under the same health insurance policy. Or, if it’s just you and your spouse, you could bring both sets of parents under the same health plan.

Benefits of getting your folks into the family floater fold

  • Ensure the health cover your family needs. This is especially important for older family members. They may be prone to illness and may even need frequent hospitalisation. A good health plan would minimise your out-of-pocket expenses. Besides, senior citizens may sometimes be unable to get individual policies owing to poor health. Extending your family floater plan would help in this case.
  • Enjoy the convenience of one policy with one premium. Monitoring the plan is that much easier.
  • Pick a more affordable plan. Family floaters are usually cheaper than individual plans for each person. You get a larger coverage in relation to the premium payable.
  • Get income tax benefits under Section 80D. Enjoy up to Rs 55,000 as tax deduction under Section 80D of the Income Tax Act. This applies to premiums you have paid for yourself, your spouse, children and parents who are senior citizens.

But before you decide to extend your family floater plan, you should check the eligibility criteria. Here are some general rules:

  • There is an age limit. The policyholder must be in their mid-50s at most. The dependents may have to be within a certain age range too.
  • There may be a limit on the number of dependents you can cover.

The rules may vary across insurers and health insurance plans. So, check with your insurer first.

There are other things to keep in mind too. For example, there may be a maximum entry age limit for dependents. This could be as low as 65 years.

The premium generally depends on the age of the oldest member. Your parents or in-laws may need to undergo pre-policy health check-ups. If they have any pre-existing conditions, it may affect your coverage. Check for any exclusions before bringing your parents under the same insurance umbrella.

You will also need to factor in the waiting periods for certain conditions. Coverage for these will kick in only after the waiting period ends.

Family floater plans have one big disadvantage though. If multiple insured members need to make claims in the same given year, the sum assured can deplete quickly. Keep in mind that older dependents may need frequent hospitalisation. In the bargain, you can lose out on the no-claims bonus as well. This will result in you paying higher premiums when you renew your policy.

What is the alternative?

You could opt for two family floater plans instead of one. Get one plan for yourself, your spouse and your children. Then, get another policy for your elderly parents. You can even consider senior citizen health plans. These cater to the elderly—typically those between 60 and 80 years of age.

Nowadays, critical illness is a serious issue that you should be prepared to deal with. This becomes even more essential as your parents age. Critical illness insurance could help here. For example, you could look at an option like Aegon Life’s iCancer Insurance Plan. The plan provides a lump sum payout if the insured is diagnosed with cancer. It even offers 150% of the sum assured if the diagnosis is one of ‘critical-stage cancer’. Plus, there is a premium waiver option for serious diagnoses. Such tailored plans help you deal with the high costs of critical illness treatment.

The last word

Whatever plan you choose, start by factoring in your family’s healthcare needs. The way that medical costs are going up, being uninsured or underinsured is a bad idea. That holds true for your parents and in-laws too. So, bring them under a health plan right away. Minimise your financial burden and give your loved ones the healthcare they deserve.

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