Can dependent children be included in a family floater, even after they are 25 years of age?
Securing their child's health is the top priority for parents. Family floater health insurance plans can be utilized to insure them. In most health insurance for families i.e. family floater policies in India, an individual is allowed to include a maximum of four children, once they reach a minimum age specified for the policy. As everyone is covered under the same family floater plan, the premium would increase slightly with the addition of each new member, but the coverage received by all of them would be equal to the value of the maximum sum insured.
Most health insurance for families or floater plans in India specify an age limit for dependent children until which they would be offered coverage under the plan. Whereas the age limit usually varies from 18 to 25, some policies cover unmarried, divorced or widowed daughters with no age limit, depending on the insurer and policy terms. After the child attains the defined age limit or becomes financially independent, they are excluded from the family floater plan and mandatorily shifted to a separate plan.
Moving to a separate plan is often beneficial to independent children, as they might require more coverage and family floater policies with higher coverage come at expensive prices. Moreover, they can also avail tax benefits on their income, along with all continuity benefits of their older family health insurance plan such as waiting periods. Therefore, experts suggest that young adults capable of earning their living move to their own individual or family floater plan.
Why is it better to take a personal policy as soon as possible?
Investing in an individual plan when a person is in their mid-20s offers several benefits:
Low Premium - This depends on multiple factors including the age at which the plan is purchased. As young people are considered healthy and less susceptible to diseases as compared to elders, the premium amount tends to increase with age. Therefore, purchasing a health insurance policy at an early age allows the insured to get the maximum coverage needed at a nominal rate.
No Medical Screening - Most insurance companies ask the policy seeker to undergo a medical check-up before purchasing a health insurance plan, if they are above the age of 45yrs. In case the reports show any health problems, the insurer might increase their premium amount. However, when a person buys the policy at a young age, they save themselves from such problems as they are exempted from the medical check-up.
Waiting Periods Served Well in Time - Most health insurance plan holders in India have to wait for a specific period before they can make claims for certain pre-existing diseases or avail of plan benefits such as maternity benefits or childbirth coverage. This is known as the waiting period and usually ranges from two to four years. When an individual buys a policy at a young age, the waiting period is likely to be exhausted well before the health cover would be required. On the other hand, coverage started at a later stage in life often comes with longer waiting periods and many exclusions.
Option to add Spouse on Marriage - When children turn 25, they might be nearing marriage, and investing in health insurance would be beneficial for them as well as their future family. Most plans come with an option of adding their spouse to the same policy, instead of buying another individual one.
Financial Independence - Getting a personal policy in their twenties would ensure that the policyholder has the adequate medical cover required for unforeseen medical emergencies. Hence, they would not have to depend on someone else to help with their expenses. It also helps them plan their finances better and focus on other long-term investments.
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Frequently Asked Questions (FAQs)
- How long can a dependent be on parents’ insurance?
Most Indian insurers specify an age limit up to which a dependent would be included in the parents’ health insurance policy, which is usually between 18 to 25 years of age. Some insurers cover unmarried, widowed or divorced daughters with no age limit per se. The specifics are mentioned in the policy wordings or customer information sheet attached to the health insurance plan.
- What is the minimum age of a child to add him to the family floater policy?
The minimum age at which a child can be added to the family floater policy is dependent upon the specific plan and insurer. On an average, a child can be included at 90-180 days from birth upon intimation to the insurance company. The exact terms governing the minimum age at which a child can be added will be stated in the policy wordings or customer information sheet that is attached to the chosen health insurance policy.
- What is the difference between floater and non-floater policy?
A floater policy means a health insurance plan that covers all the insured members under one umbrella sum insured amount i.e. a “floating” sum insured amount, which is to be distributed among each insured member. Let’s understand this better with an example. A family floater plan with sum insured of Rs. 7 Lacs has 3 insured members. Suppose one insured family member has been hospitalized, the cost of which is Rs. 2 Lacs. Once the amount is claimed, the family floater plan will now have net Rs. 5 lacs which can be utilized by the 3 insured members going forward. A non-floater policy, on the other hand, is an individual health insurance plan where each insured member can avail the maximum sum insured amount as specified by the policy.
- Who can't be covered under a family floater policy?
The relationships of family members who can and cannot be covered under a family floater policy varies from plan to plan and from insurer to insurer. The exact specifics would be mentioned in the policy wordings or customer information sheet. Typically, extended family members such as nephew, niece, aunt, uncle, brother-in-law, sister-in-law etc. may not be covered under a family floater policy.