Floater Health Policy

[tradermodified]

Someone please explain:
- What are pros and cons of floater mediclaim policy
- How much floater mediclaim policy is cost effective than individual mediclaim policy, citing an example for 3-5 lakhs total premium, for an individual plus senior citizen parents, in sound health. (If pending renewal of individual policies of 2 lakhs each)

Thanks

 

[travi]

Someone please explain:
- What are pros and cons of floater mediclaim policy
- How much floater mediclaim policy is cost effective than individual mediclaim policy, citing an example for 3-5 lakhs total premium, for an individual plus senior citizen parents, in sound health. (If pending renewal of individual policies of 2 lakhs each)

Thanks

Can you share a slightly specific example using calculators provided by some sites.

From my experience, bcos i've got one among others, Floater policy charges same premium per individual but you get less aggregate cover.
( to me, Floater is like a scam )
Floater premium was not lesser compared to individual aggregate.

say, individual is 4L
person a= 20K, b= 15K, c=10K
total prem = 45K p.a.
in floater you will get 3L + 1L ( pool floater + individual unshared )

If you took individual, then each gets their own 4L. So God forbid, but if all claimed in same year with Floater, you wont have enough cover.

Floater advantage if any is to make single payment once per year or two instead of each single payment.

In someone else's case, Floater cover wanted to increase but because senior most person did not pass their Risk profile, whole Floater cover cannot be increased. This also is like a scam.
Then insurance cust care will pitch some rider policy/add-on and that also feels like too many conditions attached.


Remember, lower cover policy's have very high premium, as cover increases, premium drop is pretty big.
eg. 3L = 20K p.a but 10L policy will be 30K.

1. Unless you have 10 or more ppl in which case managing is difficult, i suggest go for individual.
2. Instead of multiple small cover policy, take one big cover for each.
3. Ppl near 60 and above, completely different ball game. Ppl say might as well save money instead of paying premium and difficult to get large cover etc.

Point #3 in your case since you mentioned in your post gives most weightage. Better reputed Cos prefer not to give new policy.

 

[bkb]

Some policies make no specific provision for continuing cover of the surviving members in case of death of the proposer/senior most member. In such cases, policy will cease to exist and other family members may have to take a new policy without having the benefit of pre-existing disease coverage.

 

[sridhga]

Can you share a slightly specific example using calculators provided by some sites.

From my experience, bcos i've got one among others, Floater policy charges same premium per individual but you get less aggregate cover.
( to me, Floater is like a scam )
Floater premium was not lesser compared to individual aggregate.

say, individual is 4L
person a= 20K, b= 15K, c=10K
total prem = 45K p.a.
in floater you will get 3L + 1L ( pool floater + individual unshared )

If you took individual, then each gets their own 4L. So God forbid, but if all claimed in same year with Floater, you wont have enough cover.

Floater advantage if any is to make single payment once per year or two instead of each single payment.

In someone else's case, Floater cover wanted to increase but because senior most person did not pass their Risk profile, whole Floater cover cannot be increased. This also is like a scam.
Then insurance cust care will pitch some rider policy/add-on and that also feels like too many conditions attached.


Remember, lower cover policy's have very high premium, as cover increases, premium drop is pretty big.
eg. 3L = 20K p.a but 10L policy will be 30K.

1. Unless you have 10 or more ppl in which case managing is difficult, i suggest go for individual.
2. Instead of multiple small cover policy, take one big cover for each.
3. Ppl near 60 and above, completely different ball game. Ppl say might as well save money instead of paying premium and difficult to get large cover etc.

Point #3 in your case since you mentioned in your post gives most weightage. Better reputed Cos prefer not to give new policy.

I am an agent for Tata AIG. Let me make some things clear.
Floater policies have a clause called "Restore". Here if one family member uses all or part of the insurance coverage in any year, then the full amount is restored for the other family members. Moreover even for the family member who had to use that coverage, the full restore applies for other medical issues. This restore applies once every year per policy.
You were telling there is no discount. This is not true in the case of Tata AIG. For a normal healthy person of a given age group, the prices in our company are pre-defined. Then the premium is added up for all the family members and then a discount is applied based on the number of family members pooled together. I normally give this breakup in the quotations to my clients. So the discount is clearly shown in our workings.

 

[travi]

I am an agent for Tata AIG. Let me make some things clear.
Floater policies have a clause called "Restore". Here if one family member uses all or part of the insurance coverage in any year, then the full amount is restored for the other family members. Moreover even for the family member who had to use that coverage, the full restore applies for other medical issues. This restore applies once every year per policy.
You were telling there is no discount. This is not true in the case of Tata AIG. For a normal healthy person of a given age group, the prices in our company are pre-defined. Then the premium is added up for all the family members and then a discount is applied based on the number of family members pooled together. I normally give this breakup in the quotations to my clients. So the discount is clearly shown in our workings.

thanks for that info. will check for the restore clause and how it works.
I think it might not be there in all plans and only in the higher tier one. like not in silver & gold, only platinum. ( & platinum premium itself would be 50-60% higher )

but afaik and did math, floater without restore is rip-off but discount wasn't really even 10%.
and plus the issue of increasing cover bcos of senior member etc ( whole proposal got rejected )
so since them it was sort of clear to prefer individual esp if members are above 50.

There is still an issue if all members needed insurance at the same time right in Floater?

For young aged family, say not including parents and senior most is under 40, maybe Floater would look attractive.