Medical inflation in India is rising at about 12-15%, which makes coverage essential for households. A suitable policy assists families in managing hospital bills, treatment costs and medical emergencies. If you go to select plans made for couples, children and parents, the selection of the right one requires careful attention to features and eligibility conditions.
In this aspect, this blog presents a simple checklist that helps you in choosing the right family floater health insurance in India.
An Overview of Family Medical Insurance in India
Coverage policies made for multiple members in families are commonly referred to as a family floater policy. Under this, multiple members are insured within a single sum. Instead of purchasing different plans, individuals can opt for a shared sum insured plan to include spouse, children and parents.
With a multi-member policy, all members share the same amount during the policy year. For instance, if one member is hospitalised and makes claims, the expenses are deducted from the common sum insured. Insurers in India are regulated by the Insurance Regulatory and Development Authority of India (IRDAI). Some of the common benefits of family floater health insurance include:
- Hospitalisation expenses
- Pre-hospitalisation and post-hospitalisation coverage
- Daycare treatments that do not require overnight admission
- Ambulance services
- Cashless treatment at network hospitals
Checklist for Choosing the Right Coverage for Families in India
There are five main checklists that will help you to choose the ideal family floater health insurance policy. These are as follows:
1. Identify The Number of Members’ Allowance
Insurers in India allow different combinations of family members to be added to shared sum insured policies. Some of the common combinations include:
- Couple only
- Couple with children
- Couple with children and parents
- Individual plans for senior parents, along with a separate floater for younger members
2. Choose the Right Sum Insured
This is the maximum amount the insurer will pay for your expenses during the policy years. Selecting the appropriate sum is important since medical costs may vary for different members. The calculation of the shared coverage limit depends on the following factors:
- Total number of members covered
- Age of insured individuals
- Healthcare costs in the city of residence
- Type of hospital preferred for treatment
3. Check Waiting Period Conditions
Coverage policies for families usually have a waiting period for certain conditions. A clear knowledge of these limits allows you to familiarise yourself with the scope of coverage. Some of the common waiting period categories include:
- Initial waiting period after purchasing the policy
- Waiting period for pre-existing medical conditions
- Waiting period for specific treatments or procedures
4. Review Hospital Network for Cashless Treatment
In these policies, there are two types of claims: reimbursement and cashless claims. On reimbursement claims, you make the payment, and the insurer reimburses your healthcare costs. On the other hand, on the cashless claims, the insurer directly pays the costs to the hospital minus your deductible. To understand the network of cashless hospitalisation of the insurer, review the following aspects:
- Total number of network hospitals across India
- Availability of hospitals in their city
- Presence of recognised multi-speciality hospitals
For instance, insurers like HDFC ERGO have more than 16,000 cashless hospitalisation networks across India. This significant number increases the scope you get with their family floater health insurance.
5. Checklist for Families
Before you make the purchase of a policy, review the following aspects to know the strength of the medical coverage:
- Verify whether the plan allows coverage for parents above 60 years.
- Review the annual premium.
- Confirm whether it offers lifetime renewability.
- Check the claim settlement ratio of the insurer.
- Examine treatment sub-limits and room rent limits.
- Review whether preventive check-ups are included.
Final Thoughts
The selection of the right family floater health insurance can be facilitated by being updated with the allowed members and selecting the right sum insured. Both factors help you select a cost-effective solution over individual policies. Along with that, compare plans based on waiting period for treatments, review the network of cashless hospitalisation and fundamentals. These aspects help you know the scope of the policy.
