Group & Family Floater Health Insurance
Sep 9, 2021

Group Insurance vs Family Floater Health Insurance Plans

Financial experts thoroughly advise health insurance to a be a critical component of financial planning. It helps to lower the burden of an expected medical emergency along with tackling the ever-increasing medical inflation. Change in living conditions, work-related stress and other things have increased the exposure to lifestyle ailments. With the right health insurance plans, these risks can be mitigated; at least the financial burden of it. When scouting for a suitable health insurance plans, there are various health insurance plans to choose from. A group insurance, in the recent times, has become a popular insurance cover since it is offered by many employers as an added perquisite over the salary compensation. On the other hand, a family floater policy helps to cover all family members in one single premium. While making a choice can be confusing, this article lists down a thorough comparison between the two helping to select the right one. Let’s have a look –

Meaning

A group insurance policy is the one that provides coverage for a specific group of people. These individuals can be associated to one common organisation. It is generally observed in a corporate setting wherein employers offer this group policy as a part of salary perquisites. By default, these group insurance plans do not cover the entire family. On the other hand, a family floater policy, as the name suggests, covers the entire family’s health insurance requirements. Here a single policy is purchased offering coverage for all the beneficiaries at once.

Features

Group insurance plans offer benefits to the insured individual; however, coverage is extendable to other family members as optional. Most group insurance policies include coverage for pre-existing ailments and maternity coverage along with offering cashless facility at network hospitals. Further, some policies include other features like ambulance coverage as well as day-care treatments. The features of a family floater policy include coverage for the insured individual along with its family members, all under a single insurance premium. Some plans restrict the coverage up to 65 years, but a few policies offer lifetime coverage. Moreover, family floater health insurance plans have a higher sum assured since all the beneficiaries avail treatment under the same policy cover. Akin to group policy, a family floater policy also offers the facility of cashless treatment at network hospitals.

Why to choose?

When it comes to making a choice among the two plans, a group policy can come handy since it offers broad coverage with better benefits. All these features are available at an affordable premium. In addition, the coverage of any pre-existing ailment is available from day one. Some plans offer some customisation that can help fine tune the policyholder’s requirements. A family floater policy on the contrary shares the entire sum assured among all the beneficiaries of the policy. The coverage is available for policyholder, spouse, parents, in-laws, along with any newborn children up to 90 days of age. Although, one needs to remember the premium for such policy is based on the age of the eldest insured beneficiary. When selecting a family floater policy, there is no longer any requirement to manage multiple plans for every person individually. Also, adding new members is simple under this cover. These are some differences between the two types of health insurance plans. Now that it is clear, it can help to make a suitable decision based on the coverage requirements. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.

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