How does family floater health insurance work in India?

Gone are the days when people would borrow money from their family or friends to undergo treatment. These days, people are aware of the various ways of getting money to fulfill their needs. And when it is about medical treatment, the majority of the people opt for a health insurance plan as soon as they become independent. As a matter of fact, now almost all the organizations these days include health insurance in the package that they offer to their employees. And if you have not got one yet, it is time you should consider buying a health insurance plan. 

While we think about purchasing a health insurance policy, we mostly focus on opting for an individual health insurance plan. The majority of the people in the country think that it will be more beneficial and will be lighter for their pockets. Seldom do they realize that a wiser choice is to buy a family floater health insurance policy. So, let us today talk about family floater health insurance plans here.

What is a family floater health insurance plan?

It is a type of health insurance plan that provides coverage to not one member but the entire family. Once you buy a family floater health insurance plan, each member of the family will get benefits out of it, and this kind of plan is also quite pocket-friendly. 

How does it work?

To understand the process of how a family floater health insurance plan works, let us take some examples.

Anand has bought a family floater health insurance plan lately with a sum insured of INR 3 lakh. The plan provides coverage to his spouse, and two kids. The annual premium that he pays for the plan is INR 6,000. Now let us consider two scenarios.

Scenario 1

Anand’s spouse was diagnosed with an illness and had to be immediately hospitalized. The total bill for the medical treatment came to INR 2,50,000. Anand pays the amount and later gets it reimbursed.

Scenario 2

Anand and his family ate out on a weekend and they contracted a stomach infection. All of them had to be hospitalized. After their treatment, the bill came to around INR 4,50,000. Since the sum insured offered by the insurance company under the plan he took was INR 3 lakh, the insurer settled the bill with the hospital. The rest of the INR 1,50,000 had to be paid by Anand.

Although the chances of the entire family being hospitalized at the same time are unlikely; even if it happens, the family can easily get the treatment without worrying about money.

What to look out for while buying a health insurance plan?

When you are looking for a family floater health insurance plan, you need to check some of the factors, which include:

Policy term

These days, several health insurance companies offer policies that come with a two-year policy term.

Maximum age for renewability

Ever since the IRDA intervened, the majority of the insurance companies come up with lifelong renewability.

The sub-limits

Before you decide to buy a family floater health insurance plan, you must check the sub-limits for sub-categories. 

Reinstatement benefit

Not many people know about this health insurance benefit. In most cases, the sum insured on a policy is foxed during a term of the policy. If the sum insured is exhausted before the term of the policy, the policyholder will find himself in a lose-lose proposition. This is where the reinstatement feature comes as help, as it can be used for refilling the sum insured when the sum insured gets exhausted before the policy term ends.

Now, all that you need to do is to buy a family floater health insurance plan. And to do so, you can contact the IIFL website.

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