Health Insurance 105 views October 1, 2021

A family floater health insurance plan covering family members under a single policy is the top draw for customers seeking protection against healthcare expenses. The premium payable for this plan remains much lower than that of an individual plan. But it does not remain lower in all cases. One such case is when you add your aged parents to the plan. The premium rises substantially in that case. There are other reasons too that do not call for including parents in this health insurance plan. Let’s talk about all these reasons in this post.

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Reasons That Discourage the Addition of Parents to a Family Floater Health Insurance Plan

Besides increased premium, a waiting period clause, inadequate coverage are some problems to have when adding your parents to a family floater plan. All these only kill the joy that this plan usually brings to the people. Let’s talk about these problems in detail and stay away from committing this mistake.

The Question is – Why do Premiums Rise by Adding Parents to a Family Floater Health Insurance Plan?

The premium of a family floater health insurance plan is dependent on the age of the eldest member. Your age won’t matter in deciding the premium which remains the case in an individual health insurance plan. Suppose your parents are aged above 60, the premium can rise by about INR 20,000-30,000 or even more, depending on their health status.

Family History of Diseases Can Raise Your Health Insurance Premium Too

In case your parents have a history of diseases, the premiums can rise way more. Such customers are more likely to fall ill and that results in frequent claims for the insurance companies to manage. So to cover for the frequent claim costs, insurers raise the premium substantially high.

Waiting Period Clause Could be Imposed

It’s only natural for senior citizens to pick up a disease or two. In case your parents already have a health condition, they will need to contend with a waiting period of up to four years. A waiting period means the time for which the coverage is not available. The pre-existing condition expectedly raises the premium much higher.

Coverage Might be Inadequate

If your parents do fall ill repeatedly and the coverage amount keeps getting exhausted due to the treatment, chances are that other insured members won’t have much for their claims.

NCB Might Get Affected Too

No Claim Bonus (NCB), which can be availed in case of no claim in a policy year, is one of the highlights of health insurance. Who won’t like the coverage amount to rise automatically on renewal using the NCB feature? However, if your parents expectedly fall ill and the sum insured keeps getting exhausted, it will affect the NCB for the entire family. In an individual health insurance plan, the NCB for the particular individual gets affected upon a claim.

The Bottom Line

Through this article, we have raised concerns over adding your parents to a family floater health insurance plan. But at the same time, your parents need coverage too against healthcare expenses. So, you should buy a separate plan for them. The premium payable towards the same and the one against a family floater plan will be less than when having parents to your plan.

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