The need for a Family Floater PolicyWhile calculating the amount for medical health insurance, please keep in mind that medical costs tend to increase with time. What seems ideal now may prove inadequate after some time. Also while life insurance can be limited to the earning member in the family, when it comes to medical health insurance, all your family members need to be covered. One of the options can be to buy mediclaim insurance for each of your family members seperately. But this is not the only option. You can also opt for a family floater policy. The idea behind a family floater policy is that all your family members are covered under one plan. As it is unlikely that all the members will fall sick at same time, the one who falls sick can avail of the benefits of the insurance. |
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Here’s an illustration showing benefits of a family floater policy: A mediclaim insurance of Rs 2 lakhs for each for the members of a family (say 3 – Father (30-35 yrs), Mother (30-35 yrs) and son (5-10 yrs)) will have a premium of Rs 2600*3 = Rs 7800 annually. However it is unlikely that all the three members will fall sick in a year (Here sick refers to a situation requiring hospitalization of more than 24 hrs). Instead one can avail a family floater plan which covers all the three members for a lesser sum (say 5 lakhs) and it will cost you only Rs 7000. Now during the policy calendar year all the members can claim expenses incurred during hospitalization upto a maximum of sum assured (5 lakhs in this case). |
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Points to be noted:
In family floater policy, premium is priced on the age of the senior most member of the family. So if you want to insure your grandfather and two daughters, a family floater plan might not turn out to be an economic option. One more option to save ur costs is Top Ups. Consider the following scenario: |
| Source: Money Today, June 2009 Edition |
Uncovering the Family Floater Policy
Published On 17 Jul 2010 By admin. Under: Health Insurance.








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