In the last few years, people’s interest in family floater health insurance has increased. In this, all the family members are covered under the same policy. There is no need to take a separate policy for each member. The question is whether there is an advantage in buying a family floater health policy instead of buying separate health policies for different family members?
Meaning of family floater health policy
Generally, husband and wife and their two children are covered under family floater health policy. This means that if you buy a health policy with a cover of Rs 10 lakh, your entire family will be covered under this policy. This policy is cheaper than buying separate policies. The reason for this is that insurance companies know that the chances of more family members falling ill at the same time are very less. Therefore they allow the use of a single pool of group funds.
Because of this the premium comes less
By allowing insurance companies to use a single pool of funds for the entire family, the risk is spread, thereby reducing policy premiums. A family floater health policy is suitable for a typical family consisting of a husband and wife and two children. This policy can save you thousands of rupees every year compared to taking separate covers. But, it is important to keep in mind that the sum assured of the policy is shared among the family members.
Who is it beneficial for?
Suppose a person takes a floater policy of Rs 10 lakh for his family. If Rs 8 lakh is spent on the treatment or surgery of one family member, there is very little cover left for the rest of the year. This problem does not arise in purchasing separate policies. Second, in a family floater policy, the premium depends on the oldest member of the family. Therefore, if you include your parents in this policy, its premium will increase significantly. This will make this policy no longer cheap.
There are big savings in premium
Family floater policy is beneficial for nuclear families. Nuclear family means husband, wife and their two children. If the expectation of husband and wife is 20 plus or 30 plus then the premium of the policy is quite low. Such a family can buy a family floater policy with more cover at a lower premium. The premium for a floater family health policy of Rs 15-20 lakh will be much lower than a separate policy of Rs 5 lakh for family members.