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The Family Floater Insurance Concept Simplified

Posted On : 25 April 2023, 1 Years Ago. Health-Insurance
Family Floater Insurance

Family floater insurance is a type of insurance that covers an entire family under a single policy. It is a popular concept in India, where families often prefer a single insurance policy that covers all family members rather than separate policies for each individual. Let's discuss the concept of a family floater insurance plan in India, its benefits, and its limitations.

 

What is a Family Floater Insurance Plan?

Family floater health insurance, often known as a family health insurance plan, covers all members of your family under a single healthcare insurance policy. Such policies cover your spouse, children, and parents with a single payment. Family floater insurance may be tailored to meet the specific needs of each member of your family. It pays for pre- and post-hospitalisation fees, critical diseases, medical check-ups, etc.

 

How does Family Floater Insurance Work?

Family floater insurance plan provides a set insurance coverage that may be used by all members of the plan's insured population. For example, if you buy a policy covering ₹15 lakhs for a year and add your husband and parents to the plan, you can claim this amount for the health expenditures of your spouse, father, mother, and yourself.

 

Assume your father filed a claim for ₹5 lakhs for knee surgery. Following the processing of the claim, you will be left with a cover of ₹10 lakhs for the remainder of the year, which the remaining family members may claim.

 

Consider a different situation where your father's surgery costs more, and he collects the whole insurance benefit of ₹15 lakhs. In this situation, the other family members won't be allowed to file any more claims for the remainder of the year.

 

What Distinguishes Family Floater From an Individual Policy?

Many individuals choose to purchase individual coverings for themselves and other family members. In this scenario, you will need separate plans for you, your spouse, your child, and so on. There will be differences between these policies' premiums, renewal dates, claim procedures, etc. This may lead to increased premiums and expenditures, taking up a lot of time and being difficult to keep track of.

 

On the other hand, a family floater medical insurance policy would cover every member of your family. As a result, you will only need to manage and pay for one policy.

 

What are the Benefits of a Family Floater Plan?

Learning more about a family floater plan and its significance before purchasing such health insurance coverage is essential. Some of its benefits are discussed below:

 

Cost Effective

One of the key benefits of a family floater insurance policy is that it can be more cost-effective than individual medical insurance policies. By covering multiple family members under a single policy, the cost of the policy can be lower than if each family member had their policy. This can be particularly beneficial for families with several members who need coverage.

 

Easier to Manage

Another benefit of family floater insurance is that it can be easier to manage than multiple individual policies. Rather than having to keep track of different policies and coverage limits for each family member, a family floater policy can provide a single sum insured to cover all family members' medical expenses. This can save time and reduce the administrative burden of managing multiple policies.

 

Flexible Policy

Family floater insurance policies can also be flexible in terms of coverage options. Some of the best mediclaim policy for family may allow for the addition or removal of family members during the policy period, while others may allow for the inclusion of extended family members, such as grandparents or in-laws. This can make it easier to customise coverage to meet the family's specific needs.

 

A family floater insurance plan is a popular type of health insurance in India that provides coverage for multiple family members under a single policy. This type of policy can offer several benefits, including cost savings, ease of management, and flexibility in coverage options. However, families should also be aware of potential drawbacks, such as limitations on coverage and shared sum insured, and carefully evaluate their coverage needs before choosing a family floater policy.

 

Secure your health with comprehensive insurance plans from Nivabupa

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I authorize Niva Bupa to call me. This will override your existing registry in DNCR. I want to get my quote and policy details on WhatsApp.
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