| 2- Selection/Introduction of Family Floater Health Insurance Policy in India |
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| The advantages of family floater are: |
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| 1. One premium buys you cover for the every member of the family subject to the maximum limit of sum insured. |
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| 2. This premium is definitely more economical than Mediclaim policies where every individual and is covered for specific amount. |
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| 3. Floaters work well when a family thinks one or two members are healthy enough not to warrant a full Mediclaim cover as mentioned in point 2. |
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| 4. Some floaters are allowing renewals up to age 70 this makes it easier for senior citizens to get health cover when they cross the age of 60. The premium charged for senior citizens under senior citizen policy is comparatively higher. It is suggested that family should go in for family floater at as early age. Which is becoming increasingly difficult under the regular Mediclaim. |
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What it Costs: Let’s take an example: Options available for buying Health Insurance by a large family
There are a large number of families in India comprising of self, spouse, 2 children and father/mother. We frequently receive queries through our website www.healthinsurance.org from such families, who are looking for best option for buying of health insurance.
Let us take example of Vashisth’s family comprising of following: |
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Age |
| 1 |
Vashisth |
34 |
| 2 |
Spouse |
28 |
| 3 |
Son |
05 |
| 4 |
Daughter |
03 |
| 5 |
Father |
62 |
| 6 |
Mother |
58 |
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Vashisth wishes to buy mediclaim policy for his immediate family + dependents and his parents and wants to know what the best available option is.
In an ideal situation, any one will assume that one policy should be issued for all of them and family should be eligible for 10% discount on family of 6. But this does not happen. As his father aged 62 years is now a senior citizen, he will have to go in for a separate policy under Varistha Bima Yojna (named by different insurance co’s under different brand names). His mother cannot be included in the Family Floater policy as insurance co’s in our country issue policy to 2 adults + 2 children only. A 3rd adult is not permitted to be covered under family floater. It is surprising but it is a fact. If Family Floater is selected for Vashisth’s family of 4, then their Mother (58 yrs) also needs a separate policy.
If Vashisth wishes to cover every member for Rs. 2 Lakhs than normal policies can be issued to 5 of them.
Let us say each family member is to be covered for Rs.2 Lakh then options are: |
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Alternative 1: Choose from Table 1, family floater for Vashisth family of 4, Mother from Table 2 and Father from Table 4
Then cost is coming: |
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Amount in Rs. |
| Details |
No. of Persons |
Policy Type |
Sum Assured |
Ins. Co. |
Premium |
| Family |
4 |
Family Floater |
2 Lakh |
Reliance General (Silver) |
9225 |
| Mother |
1 |
Individual Mediclaim |
2 Lakh |
United India (Gold) |
6884 |
| Father |
1 |
Senior Citizens Mediclaim |
2 Lakh |
Oriental Insurance |
9596 |
| Total |
6 |
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25705 |
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Note: Vashisth family of 4, each one is covered for Rs. 2 Lakhs subject to max. claim in a year of Rs. 2 Lakh (for 4 of them).
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| Alternative 2: Choose from Table 3 for Vashisth’s immediate family of 4 + Mother, and take cover for Father from table 4. |
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| Details |
No. of Person |
Policy Type |
Sum Assured |
Ins. Co. |
Premium |
| Vashisth family + Mother |
5 |
Individual Mediclaim |
2 Lakhs |
Star Health & Allied |
16214 |
| Father |
1 |
Senior Citizens Mediclaim |
2 Lakhs |
Oriental Insurance |
9596 |
| Total |
6 |
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25810 |
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| Note: Every member is covered for Rs. 2 Lakhs.
With these Tables and examples it is easier for you to decide – Vashisth should go in for which cover. |
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