5 min read
The new year has started and so does the financial planning of people as per their requirement. Looking at the huge inflation rate and the rising cost of healthcare treatments, it is prudent to buy a medical insurance policy for you and your closed ones.
However, when buying a health insurance plan people working in the corporate sector get confused. Since corporate employees could avail corporate health insurance plans for their family, they find it difficult to decide whether to avail the benefits of a corporate plan or to go with a family-floater health insurance plan.
Most people are of the opinion that corporate insurance policies are sufficient for the entire family, while the fact is there is a huge difference between the corporate health plans when compared to family floater health insurance policies.
Corporate health insurance plans are policies that allow coverage to a group of individuals who are employees of a company. It is also called Group Health Insurance.
So, how does corporate health insurance work? Under a corporate health plan, the same coverage benefits are offered for the entire corporate entity for different needs such as accidents, illness, surgeries, hospitalization, and so on.
Family floater health insurance meaning implies that the policy sum insured under this plan is not fixed for one member. Thus, the policy allows the insured and his/her family a wide option of coverage. The plan is cost-effective as one plan covers all the members of the family. A family-floater plan covers the insured, his/her spouse, 2 children as well as parents. Some plans also cover parents-in-law as part of the plan.
The premium of family floater plans depends on different factors such as;
Here are the key points of difference between corporate and family-floater health insurance plans:
|Parameter||Corporate Health Insurance||Family Floater Health Insurance|
|Meaning||A corporate medical insurance plan covers the employees of an organization and their dependents under the plan||A family-floater health insurance policy covers the members of a family under a single plan.|
|Who is covered?||Employees of an organization and their dependents||The policyholder, spouse, dependent parents and up to 2 dependent children|
|Eligibility||Employee is eligible till he/she is working with an organization||Anyone above the age of 18 can buy a family floater health insurance policy|
|Premium||Premium of a corporate health insurance policy is paid by the employer. Employees may have to pay for some additional coverage||The policyholder pays the entire premium amount|
|Tax benefits||The employee can claim for tax benefits only if he/she pays the premium from his/her own pocket||The policyholder can claim for tax deductions under section 80D of income tax act.|
|Exit Policy||For corporate health insurance plans, the exit criteria are retirement from job, termination, or switching/leaving job etc.||For family-floater plans, the exit criteria include, if the policyholder reaches the exit age as per the term of the policy. If the policyholder fails to renew the plan on time or if the person dies.|
|Claim Settlement||Done through TPA appointed by the insurer||Can be done via TPA or directly by getting in touch with the insurer|
|Benefits||– The premiums of corporate health insurance plans are paid by employers
– Claims get processed on priority basis
|– Being a single health insurance plan for all family members, it becomes easily manageable
– Premium cost is low
– No need to buy separate health plan for parents
|Disadvantages||– You cannot customize the corporate medical insurance plan
– The plan will cease to exist if you leave the job
|– the sum insured is shared by all family members
– It might run out if more members require hospitalization within a policy year
Now that you know the floater policy meaning and the differences between corporate health insurance and the family floater health insurance, you know that they are dissimilar plans. While buying a health insurance policy, it is important to evaluate your health needs as well as the health requirements of your family members. Hence, the selection of a policy – corporate health insurance or family floater health insurance – should be done after in-depth research and as per the particular needs of a family.
View this post on Instagram
Family floater meaning in the context of family health insurance refers to the flexible benefits available under the plan that are shared among all the insured members of the family. It is generally not possible to convert an individual health insurance policy to a corporate plan. This is because the health insurance companies involved in the plans may be different. Also, the premiums of corporate plans are paid by the employer, while in case of individual health insurance plans the policyholder pays the premium. Yes, a claim against corporate policy can be rejected because of multiple reasons, such as: Individual health insurance can be customized to fulfil the health and medical needs of the policyholder. However, in case of corporate health insurance, the policyholder has to accept the coverage offered by the employer. Yes. You can include your parents in your corporate health insurance plan. However, the benefits of the policy would vary as per the company insurance terms and conditions.
FAQs: Corporate Medical Insurance vs Family-floater Insurance
What does the word ‘floater’ mean in Family-floater health insurance?
Hence, under family-floater plans, the sum insured as well as the plan coverage is not fixed for one member of a family like in the case of individual health insurance plans. Rather, the sum insured is shared by all the family members. Hence, it is referred to as a family floater insurance plan.
Can an Individual Health insurance policy be converted to a corporate plan?
Can a corporate policy claim get rejected? If so, why?
If the policyholder did not disclose correct information at the time of buying the policy
If the policyholder makes a claim for an illness or condition that is not covered under his/her health plan
If the claim process followed was not correct etc.
Hence, it is important to follow the rules correctly and for that you must read and understand the terms and conditions of the policy well.
What is the difference between individual health insurance and corporate health insurance?
Can I include my parents under my corporate health insurance policy? Will the coverage be enough?
Family floater meaning in the context of family health insurance refers to the flexible benefits available under the plan that are shared among all the insured members of the family.
It is generally not possible to convert an individual health insurance policy to a corporate plan. This is because the health insurance companies involved in the plans may be different. Also, the premiums of corporate plans are paid by the employer, while in case of individual health insurance plans the policyholder pays the premium.
Yes, a claim against corporate policy can be rejected because of multiple reasons, such as:
Individual health insurance can be customized to fulfil the health and medical needs of the policyholder. However, in case of corporate health insurance, the policyholder has to accept the coverage offered by the employer.
Yes. You can include your parents in your corporate health insurance plan. However, the benefits of the policy would vary as per the company insurance terms and conditions.
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
Universal Health Coverage Day is observed every year on December 12 to make sure that people around the world can have access to high-quality health services.
The quality of air continues to deteriorate in India, especially in the northern region with the air quality index (AQI) in the critical category. This.
A vibrant land of cultural coalesce, India amuses the world with its unique values and diversity. The festivals play a significant role in this regard..
Insurance is an indispensable requirement. However, not everyone can afford individual medical insurance to stay covered against major uncertainties, especially after retirement. If that is.
Cancer is a disease that needs no introduction. We all know how deadly the disease is and how rapidly it is spreading across the world,.
Like in other products, GST is levied on health insurance policies too. But did you know that an NRI or non-resident Indian with a health.
Antibiotics are like marvels of medical sciences which have transformed the healthcare sector by limiting some of the deadly infections. From the earliest discovery of.
Speak to our advisor
Mahindra Insurance Brokers Limited (A Mahindra Group Company) - Unit-202, A-Wing, 2nd Floor, Amiti Building, Agastya Corporate Park, Kamani Junction, LBS Marg, Kurla West, Mumbai - 400070. Tel: +91 22 66423800
Licenced by IRDAI License No. 261; License Validity : 17-05-2025; Category : Composite Broker; CIN : U65990MH1987PLCO42609 Member of Insurance Brokers Association of India (IBAI).
Insurance is the subject matter of solicitation.
For a seamless experience, use the latest version of Chrome/Firefox/Internet Explorer.
Copyright © 2023 Mahindra Insurance Brokers. All Right Reserved.
Verify your number to activate your best premium offer
Please enter the OTP sent to XXXXXX 4099 to continue