Family Health Insurance Plans: Comprehensive Protection For All Family Members
3 min read
・Jul 30, 2024
Life seems great when you and your loved ones (spouse, children, and parents) are healthy. As the proverb goes, health is wealth, and a healthy family is like the Queen’s jewels. Yet, when unforeseen medical emergencies knock on your door, things can take a turn for the worse. According to a recent survey, 30% of Indians lack health insurance. By purchasing family health insurance plans, you can protect your family’s health and happiness against medical emergencies and rising healthcare service costs.
What are Family Floater Plans?
Family floater plans are health insurance that covers multiple family members under one policy. This means you do not have to purchase individual policies for each family member. Family floater plans usually have provision for 4-8 family members (depending on the insurer) and can include the policyholder, spouse, two children, and, in some cases, parents and parents-in-law.
This policy covers the medical expenses of every member up to the policy limit. Its premium is calculated by considering the oldest family member’s age and health profile.
Advantages of Family Health Insurance Plans Over Individual Health Insurance
Some advantages of buying a family health insurance plan over individual policies are listed below.
Everyone is taken care of
A family floater plan ensures all your family members, including spouse, children, parents, and in-laws are covered under a single policy.
Access to quality treatment
This plan offers insured families access to a vast network of hospitals and medical facilities. It ensures you and your family receive high-quality healthcare when needed.
Less Financial Hassle
Family floater plans usually have lower premiums than individual health insurance policies. Additionally, the insurance premium is eligible for tax deductions of up to ₹50,000 under section 80D of the Income Tax Act. If there are members with similar health status, these plans can cost lower premiums than if you purchase individual plans for every individual.
Free health checkup
Most family health insurance plans offer a free annual health checkup. This allows you to monitor your family’s health conditions and detect diseases early.
Family Floater vs Individual Health Insurance: Differences
Many people get confused when choosing between family floater vs individual health insurance. Here are some key differences:
| Feature | Family Floater plan | Individual health insurance |
| Coverage and sum insured | Shared among multiple family members | Separate coverage plans for each insured individual |
| Premium calculation | Based on the oldest member’s age and medical record | Depends on the individual’s risk profile |
| Coverage for dependents | Covers multiple family members under a single-family floater policy, including spouse, children, and parents | Covers only the insured individual or the policyholder |
| Premium costs | Generally lower than individual plans | It varies with an individual’s choice of health policy and coverage |
| Tax benefits | Premiums are eligible for tax deductions | Each individual’s policy premiums are eligible for tax deductions |
| Portability | Can be transferred to a new insurer, but may have some restrictions | Can be transferred to a new insurer without any restriction in most cases |
Which Insurance Plan is Better For Protecting Your Loved Ones?
The preference between family floater vs individual health insurance depends on an individual and their dependents.
If you don’t have dependents and want a good amount of sum insured for yourself, purchasing individual health insurance is better. Additionally, such individual policies are good for senior citizens as they get more benefits even though they can be costly.
On the other hand, if you want to cover the healthcare service needs of your entire family, buying a family floater plan is better. You pay one premium every year that covers the needs of every family member. This usually costs you less but can be a little difficult when more than one family member goes through severe treatments and the cost exceeds your policy limit. PhonePe makes it easy to compare and purchase family health insurance plans, ensuring your loved ones are well-protected.
How Should You Plan Members in Your Family Floater Plan?
When you are planning how to add family members to your family floater plans, you must consider the following:
- Senior citizen: Including an elderly member in your plan may require higher insurance coverage due to a higher risk of health issues.
- Pre-existing diseases: Adding family members with pre-existing health conditions can help cover the high cost of managing chronic illnesses while cutting down on the waiting period.
- Frequent traveller: If any of your family members are a frequent traveller, include them in your plan to cover them while being away from home.
- Vulnerable to specific diseases: Plan a policy that can cover specific health concerns of your family members, like hereditary conditions for lifestyle-related diseases.
- Age difference: When adding different family members to your insurance plan, consider the age difference as it can impact premium costs and overall coverage allocation.
- Limitations: Avoid opting for a family floater plan if more than one member has a pre-existing illness or the age gap between the oldest and youngest member is too big; then it is better to opt for individual policies.
Key Takeaways
Family health insurance plans can be an investment in your loved ones’ well-being. Before purchasing insurance, speak with an expert provider and disclose all your family health conditions. This ensures hassle-free claims processing.
Frequently Asked Questions
What is the premium calculation process for family floater plans?
What is the difference between family floater plans and individual health insurance plans?
What is the coverage limit for family floater plans?
Can parents be covered in family floater plans?
How can I file a claim for my family health insurance policy on PhonePe?
