| Are family floater health plans cheaper? Family plans offer higher cover for a lower cost >YOUR MONEY |
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This is because when looking for a family health cover, floater policies turn out to be cheaper than individual policies for each family member. Also, families get a higher sum assured with a floater plan. Experts say policy premia of public sector companies have increased 14 per cent in 2013, compared to 2012. Private sector companies have accounted for a higher premium in the morethan 45 age bracket, up 10- 12 per cent. For individuals, health insurance costs are expected to rise 15- 20 per cent; for public sector companies, the projected increase is 25- 30 per cent. Sanjay Datta, head ( underwriting and claims), ICICI Lombard General Insurance, says, " We are seeing higher demand for family floaters over individual health insurance plans, as policyholders feel they can have a higher cover ( sum assured) for a lower cost or premium." In FY13, sales of family floater plans grew 6.4 per cent year- onyear for ICICI Lombard, while those of individual plans fell 15 per cent. How should one decide if one should buy a family floater or an individual plan for his/ her family? Datta advises family floater plans, as this helps one get a higher cover for alower cost. In this case, a family means husband, wife and child( ren); usually, parents and/ or siblings aren't covered. Under family floaters, very few companies offer cover for parents. These include like Oriental India Insurance and Max Bupa Health Insurance. Family floaters are priced according to the age of the eldest family member. For a family with the eldest member aged 26- 40, Bajaj Allianz's family floater costs ₹ 10,773 and covers husband, wife and a child. The highest insurance sum offered by family floater plans is ₹ 10 lakh. However, if you want to increase the cover, topups for up to ₹ 10 lakh are available in the case of companies such as Star Health and United India. Families in which the eldest member is aged below 45 should opt for family floaters. Patel says family floaters might be more economical for nuclear families, assuming a sufficient overall sum insured is selected. But for extended families ( if these have senior citizens), a combination of family floater and individual plans might be a better option. " Therefore, it might make sense to cover the immediate family ( husband, wife, kid( s) under floater plans and opt for individual plans for the elderly. However, this will vary case to case," he says. Back- of- the- envelope calculations show a ₹ 5- lakh policy for someone aged 60- 65 costs ₹ 20,561. A family buying a floater plan for three young members and individual plans for two elderly members will have to pay ₹ 51,895 a year. However, if a family buys individual plans for younger members, too, the total annual cost is ₹ 53,288. NEHA PANDEY DEORAS Family floaters are priced according to the age of the eldest family member. The highest insurance sum offered by family floater plans is ₹ 10 lakh. However, if you want to increase the cover, top- ups for up to ₹ 10 lakh are also available |
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