Health crisis can happen to anyone at any given point of time. While the treatment would take care of the physical pain, health insurance assists in keeping the mental and financial stress at bay. However, it is not just enough to stay self-covered. Your family - spouse, children and parents - also need the same protection against any medical adversity. This is where family health insurance act as your saviour.

What is family health insurance?

A family floater plan or family health insurance plan is designed to provide medical coverage to the policyholder as well as to his/her family members. The payment of premium is made against one policy, but the coverage includes the cost of treatment for the family members of the policyholder as well.

Most of the family health insurance plans provide coverage for six members that include self, spouse, children and parents. However, there are many such family floater plans that provide coverage for more than six members where one can include their siblings and parents-in-law.

How does a family floater plan work?

Supposedly you have bought health insurance policies worth Rs. 1 lakh for each of your four family members. Thus, each member of your family can claim medical coverage up to a maximum amount of Rs. 1 lakh. If one of your family members falls sick and requires a treatment that costs around Rs. 1.25 lakh, you can claim only Rs. 1 lakh from the standalone health plan and the remaining Rs. 25,000 will be added to your out-of-pocket expenses.

In a different scenario, suppose you have bought a family floater health insurance plan of Rs. 4 lakh for your family of four. Considering a similar situation, if a family member requires treatment of Rs. 1.25 lakh, the whole amount will be covered under the family floater plan. Until and unless the cumulative medical expenses do not exceed Rs. 4 lakh, you will not have to shell out any extra money.

Benefits of family health insurance

Be it any insurance policy, one has to pay a premium. In case of family floater plans, in lieu of the premium paid for one health plan, the whole family gets insured. Thus, under a family health insurance plan, the health-related uncertainties of all the family members and the associated costs of treatment are taken care of. Further, a family health insurance plan saves the policyholder from buying separate policies for each family member. It reduces the handling time and efforts of maintaining multiple policies.

Some of the health insurance plans come with the provision of lifetime renewability. Also, many of the family health insurance providers offer discounts and generic as well as member-specific add-on services. Hence, for a family person, a family floater health insurance plan can be a concrete tool to guard his/her family against the spiralling healthcare expenses.

Learn more about different Health Insurance Plans here.

DISCLAIMER

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.



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