Every person wants to safeguard their family from financial problems in case of any medical conditions. Hence, many opt for health insurance to get financial cover against various medical expenses.
Primarily, there are two types of health insurance- individual health insurance and family floater policy. While individual health insurance covers the policyholder, a family floater policy covers all the family members of the primary insured person.
Let’s take a look at the benefits of family floater policies-
- Cover Against Medical Expenses
Health insurance provides financial assistance to pay for medical expenses. Therefore, it can protect the finances of policyholders. Furthermore, there are plans that cover daycare procedures, hospitalisation expenses, etc.
As a family floater policy covers all the members of the family, its premium tends to be lower compared to buying individual policies for each member. Hence, family floater health insurance is a cost-effective option to get financial protection against medical expenses.
- Tax Benefits
Of the Income Tax Act 1961 the policyholder can avail tax deduction on the premiums paid to purchase the policy. An individual can claim up to Rs. 25,000 for a policy purchased for himself/herself and family. In case the individual is above 60 years of age, he/she can claim up to Rs. 50,000. An additional deduction is also available for buying insurance for parents. If parents are below the age of 60, then the deduction limit is Rs. 25,000. The deduction limit is Rs. 50,000 if parents are 60 years old or more.
Factors to Consider When Selecting the Best Family Floater Policy
- The Sum Insured
When purchasing a policy, a very important factor is the sum insured. The sum insured is the cover amount of the family floater plan. Hence, applicants need to ensure the sum insured is sufficient to cover all the members of the family. Furthermore, it is recommended to opt for a higher sum insured if parents are covered in the plan.
- Pre and Post Hospitalisation Expenses
There are expenses that might occur before the policyholder gets hospitalised and after he/she is discharged. These pre and post hospitalisation costs can be very expensive. Hence, it is important to ensure that the family floater policy covers these expenses.
- The Premium
The premium amount is the money the policyholder must pay to buy health insurance. Therefore, it is essential to compare different plans offered by insurance providers. This can allow applicants to choose a plan that meets all their requirements and is within budget.
- Daycare Procedures
A lot of policies don’t cover medical procedures that require less than 24 hours. Thus, applicants should look for health insurance plans that cover daycare procedures.
- The Claim Settlement Process
This is one of the most important factors to consider. The claim settlement process should be easy. Thus, applicants should look for insurers with high claim settlement ratio. The claim settlement ratio refers to the number of claims approved compared to the number of claims filed. The higher the claim settlement ratio, the higher the likelihood of the claim getting approved.
Keep these Factors in Mind When Purchasing Family Floater Policy
A health insurance plan is important for financially securing your family against high medical expenses. Therefore, consider these factors when selecting a plan.