Health insurance provides cover for medical or surgical expenses of the insured. Health insurance either reimburses the policyholder or takes care of the expenses by directly contacting the care provider of the insured. In the present day of uncertainty and inflation, family health insurance helps you to pay for medical expenses for your entire family. It ensures financial support in the time of need. Health insurance is broadly classified into two categories.
Indemnity Plans: Indemnity plans provide reimbursement for the expenses incurred by the policyholder. It reimburses the policyholder up to the expenses incurred under the policy.
Defined-benefit Plans: Unlike indemnity plans, defined-benefit plans pay the entire amount payable to the policyholder regardless of the amount incurred.
About Family Floater Plans
Health plans are taken for every member of the family, be it for children, spouse, etc. You will pay the premium for getting the health cover. You can get the cover for yourself, spouse, children and dependent parents under a single plan. The premium amount under this plan is on the basis of the eldest member of the family.
The health coverage available under this plan can be claimed by all the members and is not restricted to just one member of the family. This insurance plan basically runs on the idea that the chances of all the members of a family falling ill at the same time, or in the same year is very less.
Such a plan is beneficial to buy for a family. Rather than buying different coverage for different members of the family, buying a family floater plan is the right option. This particular plan also provides tax exemption on premiums and on the benefit received under section 80D of Income Tax Act.
If you have kids or have just started a family, it is always better to go for family floater plans rather than individual plans. Floater health plans offer coverage for a lower cost than individual plans. For most families who do not have a history of chronic illness, it is best to choose a floater plan instead of an individual plan.
How It Works?
Buying a family health insurance plan, the insurance company will cover you & your family’s health-related expenses. You only need to buy family health coverage depending on the health condition of the people you want to include under health insurance.
Let’s understand this with the help of an example
Mr. Rohit Kumar’s family includes wife Rita and two kids. He buys a family health coverage of Rs 5 lakh. During a policy year, his medical treatment due to a hospitalization incurred the cost of Rs 2 lakh. A family health insurance plan pays the medical bill. Now for the remaining period during a year, he or his entire family members can also get the health cover of Rs 3 lakh.
So, under a single family floater health insurance policy, you can cover your entire family against the hospitalization/medical expenses.
In case, you exhaust the entire sum assured, most of the health insurance plans come with an option for restoration of health cover. It will help you to access the healthcare services in a hassle-free manner with no worries to pay for the health care expenses.