Corporate Health Insurance vs. Family Floater Health Insurance
Given the high inflation rate and increasing cost of medical treatment, buying a health insurance plan is crucial for financial planning. With changing lifestyles and increased exposure to life-threatening diseases, it’s more important than ever to buy comprehensive health insurance that covers medical expenses for you and your family members.
Many individuals, especially those in corporate jobs, often confuse corporate health insurance with family floater insurance, believing it's sufficient for their medical needs. Some large companies even extend coverage to dependents like parents, spouses, and children under their corporate health insurance. However, there are significant differences between these plans in terms of features, benefits, and sum insured. This article highlights the key differences between these two popular health insurance types.
What is Corporate Health Insurance?
Corporate Health Insurance provides coverage to a group of people, typically employees of a company. Corporate Health Insurance is synonymous with Group Health Insurance.
What is Family Floater Health Insurance?
A family floater health insurance plan provides comprehensive coverage for you and your family. These plans are less expensive than buying an individual policy for each member. It is an excellent way to ensure basic health insurance coverage for your family.
A family floater plan can cover you, your spouse, two children, parents, and in-laws. The premium for this type of policy is based on the following factors:
- Number of insured members
- Extent of coverage
- Sum Insured
- Age of the members
Corporate Health Insurance vs Family Floater Health Insurance
The table below highlights the differences between corporate and family floater health insurance plans:
| Parameter | Corporate Health Plan | Family Floater Plan |
|---|---|---|
| Definition | Covers employees (and their dependents) of an organization. | Designed to cover the entire family under a single health insurance plan. |
| Who is covered? | Employees of a company (and their dependents). | Self, spouse, parents, and up to 4 children. |
| Premium | Employer pays the premium. Employees may opt for additional coverage at an extra cost. | Policyholder pays the full premium. |
| Tax implications | Tax benefits can be claimed only if the employee pays the premiums out of pocket. | Policyholders can claim tax benefits under Section 80D of the Income Tax Act. |
| Eligibility | Employees are eligible as long as they are employed by the organization. | Any person above 18 years of age can buy a family floater health insurance plan. |
| Exit criteria | Retirement, termination, or leaving the job. | Reaching the maximum age (as per policy terms), non-renewal, or death. |
| Claim settlement | Through a Third-Party Administrator (TPA) appointed by the insurer. | Either via the TPA or by directly contacting the insurer. |
| Pros |
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Conclusion
It is clear that there are significant differences between these two types of health insurance. It is essential to evaluate your and your family's health needs before choosing between a corporate health insurance and a family floater health insurance plan.
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