FINANCE TIP OF THE DAY
Can you afford your loan?!
Know the quantity of loan you can afford. The banks may sanction loan based on your income but you should look at your monthly expenditure and see if you can afford the maximum that banks offer. As a thumb rule, remember not to let your credit exceed 40% of your income!
Lower insurance premium, take a floater policy!
Is there any way you can cover your whole family under a single policy? Yes, opt for floater health insurance cover. It is a health insurance cover that provides cover to your entire family in case of any eventuality when the policy is in force. This policy covers medical expenses that you have to bear as a patient during your hospital stay over 24 hours.
Cost saving has become our mantra today. Whether it is household expenses, electricity bills or telephone bills, our constant aim is to lower these expenses. The same holds true even for health insurance. We try to get the maximum possible insurance cover at the lowest possible price. This is where floater health insurance plan will help you.
Introduction to floater health insurance policy
We all know health insurance is a very important insurance as any serious illness can end up costing us a lot of money. But a regular health insurance provides health cover only to one person. So if there are 5 persons in the family, you will end up taking 5 different policies. Now is there any way you can cover your whole family under a single policy? Yes, opt for floater health insurance cover. It is a health insurance cover that provides cover to your entire family in case of any eventuality when the policy is in force. This policy covers medical expenses that you have to bear as a patient during your hospital stay over 24 hours. These expenses comprise of room charges, medical experts’ fees, medicines as well as expenses incurred a month before hospitalization and for next 2 months after discharge from the hospital.
Regular health plan vs floater health plan
Assume there is a family of 3, comprising of a couple and their child. Under a regular plan they will have to pay a premium of Rs. 8000. But if they opt for a floater plan, they end up paying only Rs 4500, thus saving around 50% of their premium amount. Moreover in a regular policy, you have to specify the sum insured for ever member of the family. But in case of the claim, if the expenses exceed this sum insured, you end up paying the balance. But in case of the floater plan, every member can get the same benefit of the whole sum insured in the policy. So in the above case if the wife’s sum insured is Rs 2 lakhs but actual hospitalization expenses incurred on her are Rs 2.5 lakhs, the family ends up paying this additional 50,000. But if they had taken the floater policy of Rs 6 lakhs, each person in the family or the whole family would end up getting this whole sum insured in case of any eventuality during the policy term.
Benefits of floater plans
Here are some major benefits of floater plans:
- Free health checkup facility for senior citizens in your family.
- An alternative of opting for 2 year cover that provides a nonstop 2-year protection without any increase in premium in the 2nd year. So you end paying the same premium for 2 years.
- No need for medical examination till the age of 45 years.
- Income tax benefits as per section 80D. You can deduct up to Rs 15,000 (Rs 20,000 if you are a senior citizen) from your total taxable income.
Exclusions from policy
This policy does not include medical expenses incurred during the initial 30 days from the commencement of the policy. However these expenses exclude the expenses incurred for treating accidental injuries. Also this clause is applicable for the fresh policy and not on its future renewals. Moreover floater policy is suitable for young, healthy people, as they are less likely to fall ill. They end up saving money on their health cover. But as you grow old, you are more prone to ill health, so it is advisable to opt for regular health cover.
Health insurance is a must in today’s fast-paced world, where people are more likely to fall ill. Floater health plans are the health insurance plans that save you money while providing health cover to you and your entire family. They are suitable for young, healthy individuals who are less likely to fall ill. For seniors and those suffering from any ailments regular plans are advisable.