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Increasing the Sum Insured of Your Family Floater Plan – When to Do So?

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Healthcare costs are increasing rapidly, and even a minor medical procedure can lead to significant financial strain. Therefore, it is important to have adequate health insurance coverage to protect yourself and your family against unexpected medical expenses. Additionally, you must review your health insurance coverage periodically and ensure it is adequate for higher medical bills. If you are covered under a family floater, there may come a time when the existing sum insured no longer provides adequate protection for the covered members. In such cases, increasing the sum insured can help you avoid financial setbacks during medical emergencies. Here, we will discuss when and why you must increase the sum insured of your family health insurance policy to ensure comprehensive coverage for your loved ones.

What is a family floater plan?

A family floater is a type of health insurance policy that provides coverage for the entire family under a single sum insured. The policy can cover you, your spouse, dependent children, parents, and even parents-in-law in some cases. Therefore, instead of purchasing individual policies for each family member, you can cover your loved ones under one plan to meet their healthcare needs. The sum insured of a family floater can be used by any of the covered members, depending on their healthcare requirements.

How does a family floater work?

A family floater or family health insurance policy combines the coverage for multiple family members under one plan. The sum insured by this plan is typically higher than that of individual health insurance policies and is shared among the covered members.

If a covered member falls sick and incurs high medical expenses, he/she can use the entire sum insured to cover the bills. This means that while the sum insured is shared among family members, there is no restriction on how it can be utilised, ensuring flexibility in times of need.

Benefits of a family health insurance policy

The following are the benefits of a family health insurance policy —

1. Single coverage for multiple family members: The policy covers multiple family members under one plan, saving you from the hassle of purchasing separate policies. It is also easier to manage when compared to handling multiple individual health insurance plans.

2. Single premium payment: With a family floater, you only need to track one renewal date and handle a single premium payment. This makes it convenient for you to manage your family’s health coverage.

3. Higher sum insured: Since a family floater covers multiple individuals, its sum insured is typically higher than individual health plans. This higher coverage can alleviate your concerns during expensive medical procedures.

4. Cost-effective: The premium of a family floater is generally more affordable than purchasing individual health plans for each family member. Therefore, investing in this plan reduces your premium liabilities while offering comprehensive protection.

5. Flexibility: The sum insured is shared among the covered family members, and there is no restriction on how it is used. This means that in case of high medical expenses, one member can utilise the entire coverage.

6. Wide coverage: A comprehensive family floater plan typically covers a range of expenses, including hospital bills, pre- and post-hospitalisation expenses, home healthcare, daycare procedures, organ donor expenses, and more.

7. Cashless treatment: If you choose a network hospital for a medical procedure, you can avail of cashless treatment and save yourself from the hassle of filing a reimbursement claim later.

When should you increase the sum insured of your family floater

You may need to increase the sum insured of your family floater plan in the following situations —

1. Addition of new family members: If you add new members to your policy, such as your spouse, parents, or children, you may need to increase the sum insured to ensure adequate coverage for all.

2. Additional dependents: If elderly parents or other family members become financially dependent on you, it is wise to add them to your family floater and increase the sum insured. This will help you take care of their healthcare needs without financial strain.

3. Approaching a higher age: As age increases, the likelihood of health issues also rises. Therefore, if you or any of the covered family members are approaching an older age, your existing policy coverage may no longer be sufficient to handle the increased medical expenses. In such cases, it is important to increase the policy’s sum insured to manage higher health risks and the possibility of frequent hospitalisations.

4. Critical illness: If one or more of the covered family members are diagnosed with a critical illness, such as cancer, heart disease, high blood pressure, or diabetes, increasing the sum insured can help you cover the medical costs associated with such conditions. You can easily opt for a critical illness top-up or rider to boost policy coverage in a cost-effective way.

5. Relocation to a metropolitan area: If you move to a city where healthcare costs are higher, increasing the sum insured will help you cover medical treatments in more expensive hospitals.

Reasons to increase the sum insured of a family floater

The following are key reasons to increase the sum insured of your family floater plan —

1. Medical inflation: Due to medical inflation, healthcare costs are rising year after year. As a result, your current sum insured may not be sufficient to cover future medical expenses. In this case, increasing the sum insured can help you keep pace with inflation.

2. Ageing family members: Health issues and healthcare expenses increase as one ages. If your parents or other family members are getting older and their healthcare needs are rising, it is wise to increase the coverage to ensure sufficient protection during medical emergencies.

3. Changes in health condition: If a covered family member gets diagnosed with a severe or chronic medical condition, increasing the sum insured provides better financial protection against high healthcare bills.

4. Expensive medical treatments: If you anticipate the need for expensive medical treatments and surgeries, increasing the sum insured ensures you are prepared for high medical bills without worrying about coverage gaps.

5. Better financial protection: If there is a medical emergency, a higher sum insured provides peace of mind and helps prevent financial strain when the bills exceed your current coverage limit.

How to increase the sum insured of your family floater?

The following are the steps to increase the sum insured by a family floater plan —

Step 1: Contact the insurance provider

Reach out to the insurance company and inquire about the process of increasing the sum insured. Ask for available options, including whether they allow policyholders to increase the sum insured only at the time of policy renewal or otherwise as well.

Step 2: Choose the increased sum insured

Evaluate your needs based on factors like your family’s health, medical inflation, and lifestyle risks, and decide on the amount by which you want to increase the sum insured of your family floater.

Step3: Undergo a medical check-up

In some cases, especially if the family floater covers elderly members or individuals with pre-existing conditions, the insurer may require a medical check-up report before agreeing to increase the sum insured. Therefore, undergo a health assessment if required.

Step 4: Opt for a top-up or super top-up plan

If you don’t want to change the sum insured of your base policy, you can opt for a top-up or a super top-up plan. This will provide extra coverage over and above the base plan.

A super top-up plan is a good option for covering higher medical expenses associated with prolonged hospitalisations and expensive treatments.

Step 5: Review and accept the new premium

Once you have decided on the increased sum insured or top-up plan, carefully review the new premium and ensure it fits your budget. If it looks fine, you can accept the changes, and your family floater will be updated with the increased coverage.

Tips for deciding on the right sum insured

If you are planning to increase the sum insured by your health plan, consider the following to determine the right coverage —

• Health of all covered members: Ensure that the sum insured is sufficient to cover the medical expenses of all family members included in the policy.

• Lifestyle and health risks: If you or any covered family member has a sedentary lifestyle or unhealthy habits, you may need higher coverage to address potential health issues.

• Medical emergencies: It is important to choose a sum insured that can cover major medical emergencies without causing financial strain.

• Medical inflation: Healthcare costs are rising globally, so it is important to consider medical inflation and choose a sum insured amount accordingly.

Conclusion

Increasing the sum insured of your family health insurance policy ensures that you and your loved ones are adequately protected against rising healthcare costs. The right coverage will also help meet the healthcare needs of ageing and ailing family members and address changes in lifestyle and location. Therefore, reviewing and adjusting your policy coverage periodically is important to ensure financial security when you need it most.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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