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Understanding Family Floater Health Insurance: Meaning & Advantages

TeamAckoNov 20, 2023

When it comes to safeguarding the health of your loved ones, a family floater health insurance plan emerges as a prudent and cost-effective choice. This comprehensive guide aims to shed light on the intricacies of family floater health insurance, focusing on it's meaning, how it works, top advantages, comparison, and things to consider before buying family floater plan.

Contents

What is Family Floater Health Insurance?
How Family Floater Health Insurance Works?
Top 10 Advantages of Family Floater Health Insurance
Difference Between Family Floater and Individual Health Insurance
Things to Consider Before Buying Family Floater Health Insurance
Frequently Asked Questions (FAQs)

What is Family Floater Health Insurance?

A family floater health insurance plan is a tailored health coverage that extends to multiple members of a family. Unlike individual health insurance, which requires separate plans for each family member, a family floater plan allows you to cover your spouse, children, parents, and even siblings under a single policy. This not only streamlines the insurance process but also proves economical, with lower premiums compared to individual plans.

How Family Floater Health Insurance Works?

A family floater health insurance plan functions by consolidating the coverage for all enrolled family members under a single plan. The shared sum insured allows multiple claims, offering flexibility during medical emergencies. This shared approach distinguishes it from individual health insurance plans.

Top 10 Advantages of Family Floater Health Insurance

Here are 10 advantages of a comprehensive and feature-rich health insurance plan for family.

1. Covers the whole family under one plan, making it easier to manage

The complexities of managing individual health insurance policies for each family member can be daunting. A family floater health insurance plan simplifies this process by encompassing all family members—spouse, children, and dependent parents—under a single umbrella. This streamlined approach not only eases administrative burdens but also ensures that each family member enjoys comprehensive coverage without the hassle of maintaining separate policies.

2. Sum insured is shared by covered family members

One of the most distinctive features of a family floater plan is the concept of shared sum insured. In simple terms, the total coverage amount is available to any family member in case of a medical emergency. This dynamic allocation of coverage ensures that no family member faces the risk of being underinsured, while optimising the utilisation of the sum insured.

3. Lower premiums than individual policies for each member

The beauty of a family floater plan lies in its cost-efficiency. The collective risk pool often results in lower premiums, making it an economically sound decision that doesn't compromise on coverage.

4. Tax benefits

Beyond the realm of health protection, a family floater health insurance plan also offers tax advantages, as the premiums paid for such policies are eligible for deductions. This dual benefit of securing your family's health and reducing your taxable income makes a family floater plan a wise financial move.

5. Annual health check-up for each family member

Many family floater plans include a provision for annual health check-ups for each covered family member. This proactive approach to health care aids in the early detection of potential issues, empowering you to take preventive measures and ensure the well-being of your loved ones.

6. Teleconsultations

In an era marked by digital transformation, accessibility to healthcare services has taken on a new dimension. Family floater plans often encompass teleconsultation services, allowing family members to consult with medical professionals remotely. This feature is particularly advantageous for minor health queries, follow-up consultations, and seeking medical guidance without the need for physical visits.

7. AYUSH treatment coverage

India's rich heritage of alternative healing systems, collectively known as AYUSH (Ayurveda, Yoga, Unani, Siddha, Homeopathy), offers holistic health approaches. Many family floater plans extend their coverage to include such treatments. This inclusion enables you to explore traditional and alternative healing methods, promoting a holistic approach to well-being.

8. Daycare treatment coverage

Medical advancements have redefined healthcare, with many procedures no longer requiring extended hospital stays. Family floater plans typically encompass coverage for daycare treatments—medical procedures that necessitate less than 24 hours of hospitalisation.

9. Pre and post hospitalisation coverage

Medical expenses extend beyond the duration of a hospital stay. Family floater plans offer comprehensive coverage by encompassing pre-hospitalisation and post-hospitalisation expenses. This holistic approach ensures that you're protected throughout the entire medical journey, from consultations and tests to recovery and follow-up care.

10. Cashless claims

Medical emergencies are inherently stressful, and financial worries only exacerbate the situation. Family floater plans often offer the convenience of cashless claims. This streamlined process entails the insurer directly settling the medical bill with the hospital, minimising out-of-pocket expenses and allowing you to focus solely on the health of your loved ones.

Difference Between Family Floater and Individual Health Insurance

Aspect	Individual Health Insurance	Family Floater Health Insurance
Coverage	Dedicated coverage for the policyholder.	Coverage amount distributed among all family members.
Benefits	Covers all medical expenses of the individual.	Covers all medical expenses of family members under the plan.
Premium	Higher premium based on coverage, age, and medical history.	Lower premium as it covers all family members under one plan.
Members Covered	Only the policyholder.	Enrolls four to eight members, including the policyholder, spouse, children, and sometimes parents.

Things to Consider Before Buying Family Floater Health Insurance

Sum Insured

Ensure that the sum insured is sufficient to cover the medical expenses of the entire family. Most insurers offer family floater plans starting from Rs. 50 lakh.

Network Hospitals

Choose an insurer with a substantial network of hospitals to facilitate cashless treatment at various locations.

Claim Settlement Ratio

Opt for an insurance company with a high claim settlement ratio, ensuring quick and hassle-free claim processing.

Waiting Period

Be aware of the waiting period, typically 2-5 years, during which pre-existing conditions and certain add-on benefits are not covered.

Frequently Asked Questions (FAQs)

Here are the answers to some queries that frequently show up with regard to family floater health insurance.

How many members can I cover under a family floater health insurance plan?

Most family floater health plans allow enrollment of four to eight members, including the policyholder, spouse, children, and sometimes parents or parents-in-law.

What are the eligibility criteria for buying a family floater health insurance plan?

For adults, the minimum age criteria are 18-65 years, and for dependent children, the age bracket is between three months and 25 years. However, eligibility criteria may vary for different family floater health plans.

My employer has covered me and my family under a Group Medical Cover. Why should I opt for another policy?

A Group Medical Cover expires when you are no longer an employee of the organisation. In this regard, purchasing a family floater policy for your family is beneficial as it will continue to cover you as long as you pay the premiums.

Are family floater plans cost-effective compared to individual health insurance policies?

Yes, family floater plans are often more cost-effective as they pool the risks of all family members under a single policy. This usually results in lower premiums compared to purchasing individual policies for each member.

What is the significance of a shared sum insured in family floater plans?

A shared sum insured means that the total coverage amount is available to any family member in need. This flexibility optimises the utilisation of the sum insured based on individual requirements.

Can you explain the tax benefits associated with family floater health insurance plans?

The premiums paid for family floater plans are eligible for tax deductions. This reduces your taxable income while ensuring your family's health is protected.

How do teleconsultations work in family floater plans?

Teleconsultation services allow you to consult medical professionals remotely through digital platforms. It's particularly useful for minor health queries and follow-up consultations. Digital-first insurance companies offer the facility of teleconsultations via their mobile app. Covered members simply need to access this app and consult with specialists from the comfort of their home.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet, and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content, and before making any insurance-related decisions.