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Posted by Royal Sundaram on 13 May 2019
What is health insurance and why you need it?
With drastic changes in lifestyle and increasing pollution rate, falling sick has become an everyday thing. Under such circumstances, nothing can beat being ready for healthcare demands. A health insurance plan acts as a protector to ensure you and your family get adequate health benefits in times of your most urgent need.
What is a family floater plan?
Having realized the increasing cost of healthcare, more and more people are choosing health insurance plans. Medical insurance for an individual may be ideal for single people. However, for people with families, a far better option is family health insurance or family floater plan. The most significant advantage of this health insurance scheme is that each member of the family or a single individual in the family can utilize the entire or partial limitation of the family plan. Insurance coverage of 5 lakhs in a family floater plan has the benefit of providing treatment of one member of the family, or each family member share the benefit
Features of family floater health insurance plan
Whenever you are choosing an insurance plan, read carefully and compare different programs. Some of the critical elements of a family floater plan will include the following:
- * Sum insured – Since you are ensuring your entire family, the total sum insured should be adequate. So in case of need, either a single or the whole family can enjoy the benefits of the insurance.
- * More significant discounts – As you ensure higher amounts the discount offerings are also quite substantial.
- * New member – A family floater option offers additional coverage for new family members. You do not have to buy a new policy; instead, ask for the inclusion of a new member.
- * Tax exemption – Section 80D of the Income Tax Act provides you with the option to avail the tax exemption. If you have insured your family, you can ask for the benefit while filing your returns.
- * Hassle-free renewal – The family floater plan is one of the most straightforward plan to renew. So you can continue to enjoy the benefits without any interruption. Make sure you keep paying your insurance premium on time.
- * Maximum coverage – Most insurance plans under the floater cover will cover the whole family’s medical needs including checkup. It also includes benefits such as cashless hospitalization, ambulance cover, and treatment received at home. It also covers pre and posts hospitalization charges.
What will your health insurance not cover?
Most floater family health insurance may not be able to cover you under the following circumstances.
- 1. Cosmetic surgery
- 2. Self-inflicted wounds
- 3. Critical illness will have a waiting period
- 4. The pre-existing disease may also to a waiting period
- 5. Incurred claim ratio
It is almost impossible to state which health insurance provider has the best plan. It is more about which one suits you best. However, one indication of how much an insurance company is successful at settling claims is the incurred claim ratio. Most companies publish their rate on an annual basis to establish their credibility. The incurred rate calculation is done taking total claim settlement value divided by the premium received in that particular, fiscal year.
Take a note of the following points to understand your insurance coverage better.
- * Premium
- * Age
- * Waiting period
- * Pre and post hospitalization cover – Before 60 days and after 90 days
Things to note before buying health insurance
Before you secure your whole family’s health coverage, make the following considerations
- * Age requirement – A family can be made up of various generations of people. It is essential to note the age entry requirement and renewable clause application in case of a family floater plan. It will help you get the maximum coverage for the highest number of years.
- * Sufficiency – If a family member has particular specific health needs, opting for a floater plan may not be the best option. He or she might need individual coverage.
- * Waiting period – Always take into account the waiting period for floater insurance. Different members of the family might have different health needs that may need attention from time to time.
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