Most floater plans cover dependant kids up to 25 years3 min read . Updated: 20 Nov 2020, 07:40 AM IST
Check the policy wordings carefully to find out till what age your floater health plan will cover children
I don’t have any insurance plan. I want to start with buying a term plan but I am confused whether I should take any rider with it or not. Which is more expensive—term plan with riders or without riders? Also, is there a standard health insurance plan like a term life cover that I can buy?
Term plans cover the risk of premature death and are strongly recommended for an earning person with dependants. The coverage of a basic term plan can be enhanced through riders. If you choose riders, the premium would be higher than that of a basic plan without a rider. However, riders can be a cost-effective way to enhance coverage. You can consider critical illness rider with your term plan. It will pay you a lump sum in case you are diagnosed with any of the listed critical illnesses.
For health insurance, Aarogya Sanjeevani policy is a standard health plan that is common across all insurers. However, unlike term insurance, it has some exclusions and restrictions of coverage. For example, the sum insured of the plan is limited to ₹5 lakh, which might not prove sufficient for covering expensive medical treatments. Also, room rent is restricted to ₹5,000, pre-existing diseases are excluded for four years, and treatment for cataract has a sub-limit, which means it will be paid for only till a certain amount or cap. There are several plans available that have more favourable benefits. So, when buying health insurance, don’t search for standard plans. Instead, opt for the coverage benefits which you need and choose a plan that is comprehensive so that all your medical expenses get covered. You could refer to Mint SecureNow Mediclaim Ratings (www.livemint.com/mediclaim-rating) for a comprehensive evaluation of all health insurance plans available. For health insurance, you should consider a sum assured equal to your annual income with a minimum amount of ₹10 lakh.
My daughter is turning 18 next month. She is covered under the family floater insurance that we have. Will the policy continue to cover her after she turns 18 or will I have to buy a separate health insurance for her? If I need to buy a separate cover for her, will the present floater policy that covers my husband and me get affected in any way?
Almost all family floater health plans allow coverage for dependant children till 23 or 25 years of age. Since your daughter is turning 18, she should be covered under your family floater policy till 23 or 25, depending on the terms of your policy. Remember to check the specific policy wordings in your plan. So, you should not need a separate cover for her just yet.
However, if you are thinking of buying an individual cover for her, you can. In such a case, you would have to inform the insurer of the same at the time of renewal. Your daughter can be excluded from the family floater, and a new individual plan can be setup for her. She would get a waiver on the waiting period for the time he was part of the family floater.
Your family floater will not be affected adversely. The premium for the plan will come down and your no-claim bonus will remain intact. You can continue to renew your family floater plan as before.
Abhishek Bondia is principal officer and managing director, SecureNow.in