Family Floater is one single policy that takes care of the hospitalization expenses of your entire family. The policy has one single sum insured, which can be utilised by any/all insured persons in any proportion or amount subject to maximum of overall limit of the policy sum insured.
What is a Floater Policy? How does it work? Should one buy an individual cover or a floater cover?
A floater policy is one that is issued with a single sum insured covering number of individuals of a family. The cover can be used by any member of the family any number of times during the policy period. If a person wants a health insurance for himself, his spouse & their children, the Family Floater plan is ideal and offers insurance coverage to the entire family under one premium payment.
Let’s take an example wherein the person insures himself, his spouse & the two dependent children with the individual insurance plans with a sum insured of Rs 1 lac each, he ends up paying an average premium of Rs X for each family member, which amounts of Rs 4X. If the person opted for the family floater plan with the sum insured of Rs 3 lacs, the total premium would ideally be less than the separate premium payments in individual health insurance plans, ie less than Rs 4X. Moreover the individual plan has coverage of only Rs 1 lac for each member as against Rs 3 lacs in case of the Floater plan( in case the medical treatment exceed Rs 1 lac). This Rs 3 lacs is available for each of the family members individually as well as collectively.
It is recommended that as a general rule, at younger ages of all family members, opting for a floater cover is ideal. As the members grow older, they should go for an individual cover. But ultimately buying an individual cover or a floater cover is an individual’s preference.
What the advantages of the Family Floater Health Insurance Plan?
This health insurance plan, as the name suggests is a comprehensive plan that is customised for families. It is similar to individual health plans in its application but the significant difference is that this is for covering the entire family instead as an umbrella coverage.
A major benefit under the Family Floater plan is that, in case one of the family member gets sick and is hospitalised, the total sum insured of the policy can be utilised for treatment of the sick hospitalised member of the family. One of the principles of this plan is that all members of a family are never found to fall sick at the same time. Also the family floater health insurance has options with higher sum insured than individual health plans.
A significant advantage is that since all members of the family are covered under a single policy, there is no requirement for keeping track of the renewal of individual policies which could be at different times in the year.
A family floater health insurance is the ideal option when it comes to safeguarding the health of your family at an optimum cost.
The scope of the family floater health insurance plans of some insurance companies are widened to include dependent parents, siblings and parents-in-law as well.