Health insurance plans are offered under two major categories: individual health plans and family floater plans. Individual health plans are designed to cover only the insured individual, who is the policyholder. On the other hand, family floater plans provide coverage for all members of a family under a single plan.
Below are some of the major benefits of investing in a family floater plan:
- Low cost: Family floater plans are generally premium saving than individual plans as they are designed to provide wider coverage. Few instances, when times floater plans are bit expensive is when the age of the proposer is higher than the rest of the members, or if someone suffers due to an adverse medical condition.
- Administrative benefits: A floater plan cuts down much of your insurance paperwork. Since it’s a single comprehensive plan for all, you don’t have to maintain multiple policies. This also cuts down the need to monitor different premium payments and renewal dates. One plan to save them all.
- Tax benefits: Premium paid towards a family floater health insurance plan is eligible for tax deductions under Section 80D of the Income Tax Act 1961.
- Additional features: A family floater plan has other exciting features such as maternity cover, and new born baby cover. These features make it a very beneficial alternative for young couples and new parents.
- Add new members: In floater plans, you have the option of adding another member to the existing policy. Also, if the senior most member of the plan dies, the other insured members can still enjoy the full floater coverage, without losing any benefit.