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With the soaring prices of medical treatments and people becoming more prone to illness and mishaps, health insurance plans have become a need instead of a want. However, choosing the perfect health insurance for family members is still a tough choice to make. With the abundance of insurance plans available in the market, the buyer often stands confused as to which health insurance plan is the most applicable to their family.
For example, it is not easy to choose between group health insurance plans or family floater health insurance plans. The two plans are very diverse in nature with varying eligibility criteria, premiums offered, and the benefits of these plans. This article delves into the depths of group health insurance plans and family floater health insurance to help you understand which is the best health insurance for a family.
What Is Group Health Insurance?
A group health insurance incorporates all people working in an organization. It also covers the families of these employees with the same insurance. It is paid for by the company of an employee. Additional coverage can be purchased by employees on their own accord. The insurance stays valid till the employee is a part of the company.
For example, an individual working with a company who has opted for group health insurance has all their medical costs covered until their stint with the company. The insurance would stand null and void once the employee’s appointment letter is terminated.
Related Blog: Advantages of Group Health Insurance
What is Family Floater Insurance?
A family floater health insurance, as the name states, facilitates an entire family under the same health insurance. In a family floater health insurance a fixed insured sum is offered. This sum can be used by any member of a family that is registered under the family health insurance plans.
For instance, if one family member falls sick and is in need of medical assistance, the cost of treatment will be provided by using the common sum insured that is allotted between all registered members of the family.
Related Blog: 8 Benefits of Family Health Insurance
Group Health Insurance v/s Family Floater Insurance
There is a stark difference between group health insurance plans and family floater insurance. Here is a table to show the distinction between these health insurance plans.
| Aspect | Group Health Insurance | Family Floater Insurance |
| Meaning | Used to give insurance to people working in a company. | Covers all members of a family under the same plan. |
| Extent of Coverage | Covers employees and their families. | Covers family members including self, partner, kids, parents and parents-in-law. |
| Premium | Paid by the employer. However additional coverage costs are borne by employees. | The people insured have to collectively pay the premium in a family floater. |
| Eligibility | The insurance stays valid till the insured person is a part of the company. | All members above 18 are validated to buy family floater health insurance. |
| Tax Benefit | No tax benefits are provided since the health insurance plan is bought by the company unless they pay an additional charge for it. | Policyholders fall under the criteria to avail of tax deductions for purchasing family health insurance plans under Section 80D of income tax. |
| Claim Settlement Process | Claim settled by a third-party administrator from the insurance company. | Claims are settled by the insurance company themselves. |
| Exit Policy | The insurance stays valid until an appointment with the organization. | Policyholders can exit upon reaching a certain age based on terms and conditions. |
Conclusion
A group health insurance covers employees of a company along with their dependent members until the individual’s services are terminated from the company. While leaving, the employee would not have any health insurance plans covering for them if they don’t transfer the group health insurance. In such situations, it is recommended to have a financial option, like personal health insurance or a family floater plan. This ensures a backup in case of unforeseen medical emergencies preventing last-moment financial strains.
Disclaimer: The above information is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale.
