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Family Floater Health Insurance
Jan 10, 2023

Family Floater Health Insurance

We always strive to provide the best to our loved ones, be it the level of comfort in life or having enough backup for emergencies. Family floater health insurance policy is one such crucial element which is imperative. Not only does it secure all your medical expenses, but it is also a cost-effective option as opposed to buying individual policies. So, let’s understand more about this health insurance cover in detail and the advantages of having one.

Definition of Family Floater Health Insurance

Family floater health insurance is a policy that covers your family under one insurance plan. Family floater health insurance policies have a fixed sum insured and offer coverage to your spouse, children, and parents, under one product. In case you have extended family, you can also include your in-laws and siblings who are dependant on you. These plans usually cover expenses related to hospitalisation, pre and post-hospitalisation expenses, day-care procedures, and ambulance charges. * The family floater policies can be customised based on the requirements of your loved ones by combining add-ons with your policy. The policy may also cover expenses related to maternity expenses, newborn coverage, and even pre-existing medical conditions, depending on the terms and conditions of the policy. * The premium for a family floater health insurance policy is generally lower than the combined premiums of individual health insurance policies for each family member. This makes it an affordable option for families who want to ensure that all members are covered under one policy. Therefore, your loved ones are secure for every health-related need in the future!

Benefits of Family Floater Health Insurance Plans

Family floater health insurance plans offer several benefits to provide fool-proof coverage. So, here are some of the key perks that you should know about:

Add new family members

The most beneficial aspect of having a family floater health insurance policy is the ease of adding new members. In case you have a newborn or want to include another dependant member in the plan, this can be done effortlessly. When compared to buying a separate individual health plan for the person, you can save up with this kind of policy. **

Family floater insurance premium is cost-effective

As a family floater plan covers the entire family under one policy, the premium is much more affordable. If you had to buy separate individual policies for each member, the premium cost could burn a hole through your wallet. Therefore, family floater insurance premium goes easy on your pocket and secures the medical expenses of all your loved ones!

Cashless hospitalisation

Insurance providers have a set number of network hospitals where you can seek treatment and they settle the bills directly. This is termed cashless hospitalisation, where the medical bill is directly settled with the insurer. Thus, you can get the required treatment at almost zero cost and do away with the tedious reimbursement procedure. *

Tax benefits

You can enjoy tax benefits after purchasing a family floater policy under Section 80D of the Income Tax Act of 1961. The premiums paid for the policy can be claimed for income tax deductions. But it is advised to avoid opting for a health insurance plan only for tax-saving and get the most from your policy. #

How Does Family Floater Health Insurance Work?

Let’s assume you have bought a family floater health insurance plan with a sum insured of INR 5 lakhs. The total number of family members covered under the policy is five. When a medical need arises, the entire sum insured can be utilised by a single member, or each member can use whatever amount as needed. In the case where a single member finishes the entire sum insured, then no further claims can be made. Thus, it is advised to choose a coverage amount that secures the medical requirements of all of your loved ones. Family floater mediclaim plans are flexible in nature and are suitable for nuclear families. Know more on what is the sum insured in health insurance here. With this, you can now opt for a suitable family floater insurance plan and provide your family access to the best medical service. It is recommended to compare health insurance policies and purchase the insurance that satisfies your needs.

Exclusions - What Is Not Covered under Family Floater Health Insurance?

While the best family floater health insurance plan a variety of issues for comprehensive health coverage for your family, it's important to be aware of the exclusions that come with the policy. Here are some common exclusions associated with family floater health insurance:
  1. Pre-existing Conditions:

Most family floater health insurance policies do not cover pre-existing medical conditions. This means that if any member of the family has a condition that has been diagnosed prior to the purchase of the policy, expenses related to that condition may not be covered under the policy.
  1. Cosmetic Procedures:

A family floater plan usually does not cover expenses related to cosmetic procedures, such as plastic surgery or hair transplants, unless they are medically necessary.
  1. Non-medical expenses:

Expenses that are not directly related to medical treatment, such as administrative charges, service charges, or admission fees, may not be covered under the policy.
  1. Self-inflicted injuries:

Family floater health insurance policies do not cover expenses related to self-inflicted injuries or injuries sustained due to participation in hazardous activities or sports.
  1. Health issues due to war or nuclear activity

Any health hazards or disorders that occur due to nuclear or radioactive activity in your geographical area are not covered under family floater health insurance plans .
  1. Alcohol or drug-induced health disorders

Medical expenses that may arise as a result of abuse of alcohol, drugs, or other intoxicating substances, are usually excluded under family health insurance plans. It's important to thoroughly read and understand the terms and conditions of your family floater insurance policy to be aware of the exclusions. This can help you plan for medical expenses that may not be covered under the policy and make informed decisions about your family's health coverage.

Tax Benefits of Family Floater Health Insurance Policy

A family floater medical insurance plan not only offers comprehensive health coverage for your family but can also provide tax benefits. Here are some tax benefits associated with a family floater health insurance policy:
  1. Tax Deduction under Section 80D

Premiums paid towards a family floater health insurance policy are eligible for tax deduction under Section 80D of the Income Tax Act, 1961. The maximum deduction available is Rs. 25,000 for premiums paid towards health insurance for self, spouse, and dependent children. If parents are also covered under the policy, an additional deduction of up to Rs. 25,000 can be claimed. If either the insured or the parent is a senior citizen, the deduction limit increases to Rs. 50,000. #
  1. Additional deduction for preventive health check-ups

Under Section 80D, an additional deduction of up to Rs. 5,000 can be claimed for expenses incurred towards preventive health check-ups for self, spouse, and dependent children. #
  1. No tax on policy payout

In case of hospitalisation or medical treatment, if the policy payout is received, it is not taxable under the Income Tax Act. #
  1. Tax benefit for employer-provided health insurance:

If your employer provides you with a family floater health insurance policy, the premium paid by the employer is not considered taxable income for the employee. However, it is always advisable to opt for private health insurance plans for oneself and one’s family. # It's advisable to consult a tax expert to understand the tax implications of your family floater health insurance policy and how to maximise the tax benefits associated with it.

Conclusion

In summary, a family floater mediclaim policy is a convenient and practical solution for families to protect themselves against unforeseen medical expenses. By covering the medical costs of all family members under a single policy, it eliminates the need to purchase multiple individual policies, saving both time and money. Additionally, family floater policies often provide coverage for a broader range of medical procedures, However, it is essential to carefully consider the family Mediclaim policy's features, including the coverage limits, exclusions, waiting periods, and deductibles, before purchasing a family floater health insurance policy. It is also crucial to choose a policy that offers an extensive network of hospitals and healthcare providers, ensuring access to quality healthcare services when needed. * Standard T&C Apply. **All savings are provided by the insurer as per the IRDAI approved insurance plan. # Please note that the tax benefits are subject to change in prevalent tax laws. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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