Losing a family member is one of the most painful life events. While the family copes with the loss of life, critical decisions await their attention. For instance, if the late member was the family’s proposer under a family floater cover, the remaining insured members must make important changes to the policy effective immediately.
In this article, let’s understand what major changes happen when a family floater plan’s proposer dies and how you cover yourself best. But before digging deep, let’s understand what a family floater plan is!
What is a Family Floater Health Insurance?
A family floater health insurance policy offers healthcare and financial coverage to one’s entire family. With a common sum insured and single premium payment, the family floater cover acts as a shared pool of financial security for all the insured family members. One can secure up to 6 family members under a family floater mediclaim policy with its premium based on the eldest member’s age.
You can customise a family plan’s coverage to meet the diverse healthcare needs of all the members. Features of a family plan include:
- Wide range of sum insured options to suit every family size.
- Automatic recharge of sum insured to ensure continued financial security.
- Annual no-claim bonus to expand the financial cushion for all members.
- Cashless hospitalisation to ensure the minimal burden of medical expenses.
Besides, family floater covers save you from the hassle of maintaining separate health insurance policies for individual members. Now, let’s understand the roles of the proposer under a family cover.
Who is the Proposer under a Family Floater Plan?
The proposer is one of the insured family members in whose name the policy is issued. As a standard rule of insurance, a proposer should be aged 18 years or above. Also called the policyholder, the proposer is liable for premium payments.
Who can be covered along with the Proposer?
The proposer can choose to add up to 5 more members – including blood relatives, spouses, and even employees – or other relationships with an insurable interest. Under Care Family Floater health insurance, the proposer can cover himself, a legally married spouse, son, daughter, father, mother, and employees and his/her dependents.
Therefore, the proposer holds great importance under a family floater plan. Apart from the premium payments, all the policy-related details, changes, and updates are directly communicated with the proposer.
>>Also Read: Reasons to Avoid Family Floater for Senior Citizens
What Happens to the Policy Coverage if the Proposer Dies?
As the primary policyholder, the proposer is responsible for handling all policy-related matters. In the event of the proposer’s death, the first major shift occurs in the policy’s ownership. Below are the crucial things to take note of in case the proposer has passed away:
Communicating the Death of the Proposer
The foremost step on part of the remaining family members is to inform the insurance provider about the proposer’s demise. Thereafter, the family members need to fill up a fresh form declaring the new proposer of the policy. Also, note the cause of the death for an insurable death cause assures the family members to receive the hospitalisation claim as per the policy terms.
Selecting the Nominee
During the policy inception, the proposer must choose a nominee who shall receive the reimbursement claim in the event of the policyholder’s death. In case the proposer has not registered any nominee, the legal heirs or the legal representatives shall be paid the reimbursement amount.
Choosing the New Policyholder
The family can either choose the new proposer from among themselves or put forward a legal representative. In the case of minors, a guardian can register himself as a non-participating policyholder.
The guardian shall pay the premium on behalf of the minors until one of them attains 18 years of age. Also note, with lesser policy members, the premium, too, will be reduced as per the new proposer’s age.
Sharing the Remaining Sum Insured
Post the proposer’s death – if there are no further changes in family members’ count– the sum insured shall be shared among the remaining members equally. In case the remaining members need to make any changes in the policy’s coverage, they can do so at the time of policy renewal.
>>Check: Tips to Buy Family Floater Health Insurance
Will the Family Members Receive any Benefit on the Proposer’s Death?
No, health insurance policies do not offer any death benefit to the family members in case of the proposer’s death. Yet, some insurance providers shall offer accidental death coverage under individual and family floater health plans.
For instance, Care Health Insurance offers a comprehensive health policy– ‘Care Plus- The Complete Health Insurance Plan’ offering accidental death benefits in the event of the policyholder’s death due to an accident or injury. We offer benefits up to 100% of the sum insured under this feature.
Choosing the Right Family Floater Policy with Care Health Insurance
Securing the policyholder and their loved ones during a medical emergency is our top priority at Care Health Insurance. We make our best efforts to support the policyholders and their families during any unfortunate loss of life. Our in-house claims team thoroughly supports the family members in bearing the medical expenses while dealing with the loss. So, choose the right kind of floater cover in health insurance that stands by your family during unprecedented times.
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