Star Family Health Optima Insurance Plan

Objective

This is a family floater health insurance policy that aims to provide adequate cover even after one of the insured members has used the initial sum.

Suited for

Any two or more family members up to 65 years of age can take this policy on a floating sum basis.

What does it do?

This policy requires at least two family members to initiate the cover. The policy is different from others due to its automatic restoration facility wherein, the insurance company reinstates entire sum insured if it is exhausted by any of the members during a policy year. This restoration benefit is not available only on covers of value higher than Rs 2 lakh. Also, the restored benefit cannot be used for treatment of illness for which the claim was made.

Pros

A sufficient sum is available for other family members even after a member has used the amount. Policy pays a no-claim bonus up to 35 per cent.
One can avail 5 per cent discount on premium if the policy is bought online.
Premium paid under this policy qualifies for deduction under section 80D of Income Tax Act.

Cons

Restored benefit amount cannot be used for same illness by same member again.
There is a co-payment clause for each admissible claim for members between 61 years and 65 years, which is a drawback.

Our View

Automatic restoration benefit is a great feature for family floater policies where single sum insured is shared among many members. It ensures that other members are not deprived of insurance cover if a member has exhausted the initial cover. We recommend this policy.