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How Does Family Floater Health Insurance Work?

Author: Team Finpage
A family floater health insurance covers all your family members under a single plan with a common premium.
Friday, May 03, 2024

Are you feeling overwhelmed with the thought of getting health insurance plans for each member of your family? Choosing separate insurance policies for your spouse, children and parents can be highly tedious and remembering to pay the premiums can be daunting. This is where a family floater health insurance plan comes to your rescue. This single insurance plan extends the benefits to all family members, and you need to pay premiums for only one policy. Here's all you need to know about a family floater health insurance plan.

Family Floater Health Insurance: All Family Members Under One Umbrella

A family floater health insurance covers all your family members under a single plan with a common premium.  The best part is that you can customise your family floater health insurance according to your family structure and unique needs. The sum insured can be used by anyone who needs it.

A comprehensive plan covers consultations, diagnosis, pre-hospitalisation, hospitalisation, post-hospitalisation, and follow-up expenses. Having a single insurance plan leads to low premiums. Moreover, it has tax benefits under both old and new tax regimens.

Family Floater Health Insurance Versus Family Health Insurance

Lower Premiums in Family Floater Health Insurance Plans

Getting sufficient coverage for the elderly typically means paying high premiums. With a family floater health insurance plan, you pay a common premium that is determined according to the family's average age and health status. Therefore, you can get sufficient coverage for your parents or children without paying exorbitant premiums. Yet, everyone added to the plan is eligible for claims when needed. 

Adding Family Members in Family Floater Plans

It is also very easy to add new family members to the plan. Let’s say you have a family floater health insurance plan, and you have a baby. You can add your baby to the family floater health insurance policy. With this, you can claim hospital expenses in case your child falls ill. There is usually a minimum age limit specified by the insurer and your child needs to be old enough to be included in the plan.

Streamlined Claims Process during Hospitalisation or Medical Emergency

Let’s understand this with an example. Let’s say Mr. Kapoor got a family floater insurance cover of ₹15 lakhs. The ₹15 lakhs can be used for any family member. 

If his mother needs hospitalisation and the medical bills come to ₹4 lakhs, the family floater insurance will cover this from the common pool. The remaining ₹11 lakhs will be available for the rest of the family members. Let’s say Mr Kapoor’s wife needs surgery and ₹6 lakhs are spent, the leftover ₹5 lakhs will still be available. 

Let’s say Mr. Kapoor’s father is diagnosed with cancer and the treatment costs come to ₹20 lakhs. Mr Kapoor can choose to pay ₹15 lakhs from the family floater insurance coverage and ₹5 lakhs from his pocket. Depending on the terms, maybe the policy covers only ₹12 lakhs of the cost of treatment. In this case, the remaining ₹3 lakhs can be used for another unforeseeable medical emergency.

Some family floater health insurance providers allow you to extend the coverage to your in-laws and siblings. However, it’s important to understand how this will impact the premiums. Also, take out time to understand the terms, inclusions, and exclusions of the policy, as this will prevent unnecessary confusion during an emergency.

A healthy family is a happier family. Getting a family floater health insurance cover can ensure that all your family members receive the best healthcare when needed. 

Team Finpage

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