Senior Couples: Is A Family Floater Policy The Right Health Insurance Choice?

As we age, our healthcare needs tend to increase. It's common for senior citizens to face health-related issues, which often require medical attention. A senior couple, therefore, must plan their health insurance requirements carefully. One of the options that they can consider is a family floater policy. However, before purchasing one, it's important to understand what a family floater policy is and its benefits.

A family floater policy is a health insurance plan that covers the entire family's medical expenses. It covers the policyholder, their spouse, and dependent children under a single policy. It offers comprehensive coverage for hospitalisation, medical treatments, and even pre and post-hospitalisation expenses.

According to experts, while seniors can always opt for family floater policies, other suitable options might exist. "While a family floater policy is beneficial, it may not be ideal for senior citizens. This is because senior citizens have more medical needs and may require specialised treatment and care, which may not be covered under a floater health insurance plan. It is best to have a separate cover policy for senior citizens to avoid high expense treatment costs in the future. Individuals with corporate health policies should have parents/senior citizens added as dependents. Further, the family can opt for a top-up policy for them," says Biresh Giri, executive vice president and appointed actuary, ACKO.

Here are some reasons why a family floater policy might not be the most suitable for senior couples:

Limited Coverage: Family floater policies come with a fixed sum assured that gets shared among all the members covered under the policy. It means if one family member exhausts the sum assured, no coverage is left for other members. This limitation can pose a problem for senior couples with a higher risk of hospitalisation and requiring more medical attention.

High Premium: Family floater policies have a higher premium than individual policies. Senior couples may have to pay a higher premium for comprehensive coverage, which can be a financial burden. Additionally, if one of the family members is older and has pre-existing medical conditions, the premium can go up even further.

Exclusions: Family floater policies come with several exclusions, which means that certain medical conditions may not be covered under the policy. For senior couples who are more likely to have pre-existing conditions, this can lead to unexpected medical expenses not covered under the policy.

Renewal Age Restrictions: Some family floater policies have a lower renewal age limit. This means that once the policyholder reaches the specified age limit, they will no longer be eligible

for the policy. It can pose a problem for senior couples, as they may need help to avail the policy's benefits during their later years when they need it the most.

Copayment: Some family floater policies come with a copayment clause, which means that the policyholder has to pay a certain percentage of the medical expenses out of their pocket. This can be a financial burden for senior couples already living on a fixed income.

While a family floater policy may seem convenient and cost-effective, it may not be the best choice for senior couples in India. Therefore, it's important to evaluate the healthcare needs of the couple and choose a policy that provides comprehensive coverage at an affordable premium. Additionally, senior couples may consider individual health insurance policies with higher coverage and fewer limitations.

“It is advised to have a separate comprehensive health insurance plan for aged parents or senior citizens, which can ensure they get relentless and high-quality treatment if need be. Many health insurers have launched health insurance for senior citizens packed with features at pocket-friendly prices, specifically catering to their needs,” says Siddharth Singhal, business head of health insurance, Policybazaar.com.