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Family Floater Insurance & How to Choose the Best in India

May 02, 2018 | 2 years ago | Read Time: 3 minutes | By iKnowledge Team

Ensuring adequate healthcare for your loved ones has never been easier. You need not buy separate plans for every family member. One plan will do for everyone with the family floater health insurance policy. Despite maintaining a healthy lifestyle, the unpredictable nature of a health hazard cannot be ignored. The risks can be both unpredictable and expensive. The Family Floater Plan can put you at ease regarding your family’s health. That’s because a family floater policy is a single health insurance plan for the entire family.

Benefits of a family floater policy

Larger coverage:  You can withdraw a larger total sum for a single individual in case of a serious illness. It is also flexible. For example, if one family member is ill, you can seek coverage for the amount equal to your entire family. For example, if a family member undergoes an expensive surgery, you can use the full coverage for her/him. Also, in case of multiple illnesses, the insurance can cover everyone.

Affordable: The family floater policy works out to be a cheaper plan if you have a young family.

Convenience: Having a single plan means that you need not worry about tracking multiple plans. You pay a single premium. So, the risk of default is lower. Besides, you can add or remove members after you have purchased the plan. If you need extra riders, you can include them once, rather than separately for each. There is also less paperwork.

What factors affect the health insurance premium on a family floater plan?

There are some important factors to consider while choosing a family floater plan. These are family size, oldest member’s age, family health history, gender, and lifestyle. The most important factors are the age and the risk of a health issue. The premium is calculated based on the risk of your falling ill, which is often related to the age. For example, senior citizens have a higher risk of hospitalization.

Meanwhile, in a family floater plan, the age of the oldest member decides the premium. It is most beneficial if the eldest member of the family (husband or wife) falls in the age bracket of 26—40 years.

Should you get a family floater plan?

Yes, if yours is a young family. The premium involved is lesser if the oldest family member is in his/her 20s or 30s. Additionally, you can also upgrade the cover amount every 4–5 years. You can even add family members after you buy the policy. For example, if you get married or have children.

No, if you have senior citizens in consideration. The premiums are higher for senior citizens since they are considered as high-risk individuals. For example, a lengthy hospitalisation of a senior citizen may use up the entire cover. This will leave the other members uncovered.

If you already have a family floater plan, see if there are gaps in your coverage. Critical illnesses, such as cancer, can deplete your savings. A regular family floater plan will not suffice. Here is where a critical illness plan could help. This type of plan is most recommended if you are above the age of 35 or 40. But you can buy it earlier as well, since, like any health insurance, the premium will be lower.

A critical illness plan is a defined-benefit plan. Suppose you come in for a serious illness such as cancer or stroke. The insurer will pay the full sum insured irrespective of the actual expense.

You can include a maternity insurance rider in your family plan at an extra premium.

Besides, the premiums paid are eligible for tax exemption under Section 80D of the Income Tax Act.

To sum up

Family Floater Policies have many benefits, especially if you are in your 20s or 30s. Use the advantages of lower premiums, higher coverage, and flexibility to your benefit. Protect your family and your pocket with comprehensive health insurance coverage.

If you are worried about the well-being of your loved ones, a health insurance plan and a life insurance policy such as Aegon Life iTerm or iMax plan will provide you with the much needed peace of mind.

Advt. no.: IA/Apr 2018/3894


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