As you become more responsible, it is important to work towards not only your future but also that of your family. If you have dependents such as ageing parents or children and spouse, a family floater health insurance plan will provide financial security during medical emergencies.

In this article, we will be looking at the definition of a family floater plan, their benefits and what to look for when searching for the best family health insurance plans in India.

What is a Family Floater Insurance Plan?

As opposed to an individual plan, a family floater health insurance plan provides coverage to more members of the family and brings the entire family under a single cover. This means that there would be a single sum insured which could be availed by any member of the family that has signed up for the policy. Generally, family floater plans allow spouses, children, siblings, parents and in-laws in the policy.

Let us explain how a family floater plan works with an example. Say, Person A subscribes to a family floater plan which includes him, his wife, one son and two parents. Since he has ageing parents, he opts for a plan with a sum insured of ₹8 lakhs and he pays a premium of ₹10,000 per year. 

The way the family floater works is: in case A’s son gets ill and his treatment costs ₹5 lakhs, the insurer would reimburse or settle the bill with the hospital in full, as the sum insured is ₹8 lakhs. However, in case A’s son, spouse and parents contract an illness together and the total cost of the treatment is ₹12 lakhs, then the insurer would pay the sum insured i.e. ₹8 lakhs while the remaining ₹4 lakhs needs to be borne by A.

How Can a Family Floater Plan Benefit you?

Apart from being able to secure your entire family’s medical expenditure, a family floater health insurance provides a range of benefits:

• It is easier to manage a single family floater plan rather than subscribing to an individual plan for each member of the family.
• The sum insured is higher as compared to an individual plan as more members of the family are added.
• Onboarding more members of the family, such as spouses, new-born and in-laws, is easier.
• The plans cover a range of medical expenses such as hospitalisation, surgery, treatment, tests, doctor visits etc.
• Chances of exhausting the entire sum insured are less, and hence the bearer gets a larger sum insured.
• Some plans, such as the family health optima insurance plans, provide a refill of the sum insured up to three times in case the amount is exhausted.
• Premiums paid are exempted under Section 80D of the Income Tax Act.
• Many insurers offer plans with no age limit for renewals and hence can be renewed for life.
• Insurers also offer a cashless hospitalisation option where the insurer directly settles the bill with the hospital.
• Some plans, such as Niva Bupa’s ReAssure family plan, offer cover for even alternative treatments such as Ayurveda.

What are the Features to Look for While Buying a Family Floater Plan?

While looking for the best family health insurance plans in India, you must make sure that you take the following elements into consideration:

• Renewability age: Some insurers keep a cap on the age of the family member who can be added to the policy during renewal. Make sure that you choose a plan which offers life-long renewability.
• Policy terms: While there used to be only annual policies, many plans now offer policy terms for up to two years. Choose plans which offer longer policy terms.
• Reinstatement: Many plans offer reinstatement of the sum insured in the event of it getting exhausted. Some plans even offer multiple reinstatements. Choose policies that offer a reinstatement benefit.
• Cashless: Insurers offer a cashless hospitalisation option where they directly pay the hospital as opposed to a reimbursement. Choose plans which have a wide cashless hospitalisation network to avail the benefit anywhere.
• Cumulative bonus: Many plans offer an increase in the sum insured for every year the bearer does not avail the insurance. Choose plans which offer this facility.
• Co-payment: Some plans have the option of co-payment, where part of the expenses will be paid by the bearer while the rest of the costs are covered by the insurer. Choose plans which have a small percentage of co-payment.
• Add-ons: Look for insurers who offer add-on covers such as medicines, ambulance, free health check-ups, discounts etc.

A family floater health insurance offers a helping hand in managing our finances. Visit the Niva Bupa website and check for the ReAssure family floater plan for an insurance plan with comprehensive coverage for your family.