Family Floater Health Insurance Policies
WHILE shopping for mediclaim, you should keep two things in mind.
1) The sum assured shouldn't be lower than 5 lakh for metros and 3-4 lakh for smaller towns.
2) Secondly, there are options available to lower the premium cost, especially when it comes to family as a whole.
Instead of opting for multiple policies for your family it's prudent to go for a family floater especially for a younger family.
Family floater covers the family as a whole for a fixed sum assured. So, if you take a policy of 4 lakh, each member of your family (who is covered under the policy) can utilise the entire amount.
It does not mean the amount is split among the four family members. Such policies are generally targetted at a family of two adults and two children. Although even couples with either no children or a single child can opt for a floater.
These policies are not a good fit to cover older parents as most policies have the upper limit of 60 years for such policies.
Advantages:
Saving on multiple premium costs is the biggest advantage. For example, if we look at a family of four with the ages of members being 38, 34, 8 and 6, the premium for a 4- lakh policy works to around 12,000.
However, if each member opts for an individual policy, the premium works to 12,650. But the sum assured for each individual is much lower in that case.
Disadvantages:
1) A single claim by any of the family members could exhaust the cover limit. As a result, other family members will have less or no coverage for the rest of the year.
2) Secondly, the policy will not be renewed if the senior-most member crosses the maximum eligible age as mentioned in that policy. At this point of time, the rest of the family will have to go for a fresh policy. As a result, the premiums would be much higher for family members who have crossed 40 years.
3) This logic also applies for children who cross the maximum age, which is 25 years in most policies.
At this stage, a child has to opt for a separate policy. Like a regular policy, the renewal premium shall be calculated according to the age of the senior-most insured member as covered under the policy.
Moreover, the insurer can charge a loading on the premium in case there is a claim.
