Children are said to be the future. They need to stay fit and healthy at all times. To ensure this, you as a parent can create a financial backup for them in case of any medical issue. Children can be insured under different types of medical insurance policies that offer financial coverage to the parents in case of the child’s medical emergency. These plans are designed keeping in mind the special health care needs of children.
In this article, we will discuss the types of plans under which you can get health insurance for your children.
Family Floater Plans
As the name suggests, these plans cover the entire family. The potential nominees could be policyholder’s spouse, up to 4 children, parents of the policyholder. Usually, these are long term plans that are valid up to 2 to 3 years depending on the terms of the policy. The major advantage of this plan is that one can add and remove nominees. This is a major advantage when it comes to newborn babies. Babies up to 90 days are covered under these plans, where a consolidated coverage starting from a hospital stay to vaccinations is covered.
A family floater usually has an age limit on covering children under a good health insurance policy. Depending upon the insurance company, newborn babies, toddlers, children, teenagers, and individuals up to the age of 20 or 25 can be covered. When the upper age limit is met, the child will have to buy a separate medical insurance policy.
Why should a family floater plan be purchased?
A family floater plan offers the following benefits:
One plan for all members
This is probably one of the biggest advantages of buying a family floater plan. As a policyholder, you do not have to go through the hassle of managing separate plans for all the family members. You can make your plan feature-rich by purchasing relevant add-ons and make full use of one plan for all members. You will also have the option to increase the amount of sum insured if you feel that the current amount is not sufficient for all members.
The amount of premium could be lower for the addition of young family members. Thus, the earlier you buy a good health insurance plan the lower will be your premium amount.
You may be eligible for up to Rs. 25,000 of tax benefit for buying a family floater plan.
Long Term Security
Being a long-term plan, you do not have to bear the cost fluctuation by renewing the plan every year.
Individual Child Health Plans
As the name suggests, an individual plan is specially designed to cover your child under good health insurance. Being a standalone plan, it has its own set of benefits. For example, the entire sum insured is dedicated to the treatment of your child. Unlike a family floater plan, where the sum insured is shared among members, an individual plan will focus on your child only.
Apart from the cost of treatment or hospitalization, individual health policy in India for your child may also provide coverage for ancillary services like lab tests, ambulance cost, etc. However, do check the exact coverage with your health insurance company. You may also be liable for cashless hospitalization.
Why should an Individual Health insurance plan for children be purchased?
These plans offer the following benefits:
Individual health policy in India for children is usually inexpensive due to the low risk related to the insured. It is a win-win for both – parents and the insurance company. Buying a plan will not drain the savings of the policyholder and insuring children is not very risky for the insurance company.
There could be a situation where no claims are raised against the health insurance policy for the entire duration. In such cases, a No Claim Bonus is awarded upon the renewal of the policy. This is a discount where a certain percentage of premium is waived off. This leads to a lower health insurance premium.
The Bottom Line
You are free to choose any of the above-mentioned plans for your young ones. The decision lies upon factors like number of family members and the amount of money you wish to spare for buying health insurance. Make sure that sufficient coverage is purchased. Also, do not forget to go through the terms and conditions of your policy documents to avoid any hassles at the time of claims.
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