Yes, a family floater health insurance can be the right choice for you if you have a healthy and young family, or you are looking for an affordable option. This insurance policy covers multiple members of your family with one sum insured amount. A family floater plan provides benefits like cashless hospitalisation, tax benefits, and so on.
Let us evaluate should you buy a family floater health insurance in more detail.
What is a Family Floater Health Insurance Plan?
A family floater health insurance plan is a single policy that covers multiple family members with one sum insured. All insured members in this plan have access to the coverage pool during the policy period, and any member’s claim depletes the pool.
For instance, any insured family may use the ₹15 lakh coverage offered by a family floater plan for medical care, surgery, or hospital stays during the policy year. The coverage is shared by all insured individuals.
Benefits of a Family Floater Health Insurance Plan
- Single Sum Insured Amount
Cost-effectiveness is the biggest advantage of buying a family floater health insurance. With this policy, you can pay a single premium amount that covers your whole family rather than paying three or four separate premiums. Since not all of your family members will fall sick at the same time, this plan is more affordable than individual plans.
- Cashless Hospitalisation
According to the Economic Times, the General Insurance Council (GIC) launched the ‘Cashless Everywhere’ on January 24, 2024, to make the bill payment process easy for patients. A family floater insurance plan also provides this cashless service in any hospital.
- Tax Benefits
The premium paid for a family floater health insurance plan qualifies for tax deductions under Section 126 of the Income Tax Act, 2025.
- Entire Family Coverage under One Plan
A family floater insurance plan reduces the hassle of managing multiple plans. It covers your spouse, parents, children, and parents-in-law in one plan. This makes the premium payments, renewals, and claim process easy.
Who Should Consider Buying a Family Floater Health Insurance Plan?
Families looking for an affordable health insurance option should typically consider buying a family floater health insurance policy. Let us explore who should consider buying this policy:
- Healthy Families
Families who do not suffer from a chronic condition should consider buying this policy since they have a lower probability of getting hospitalised. Hence, the shared sum insured will be enough in such a situation.
- Young Families
Families with young couples and 1 or 2 kids can opt for this insurance policy. The probability of large and multiple claims is lower as the couple and their kids have lower health risks.
- Families with Same-Aged Young Members
The age of the oldest member determines the premium amount for a family floater plan. With the same-aged young members, you will not have to pay a higher premium because of the age gap.
How to Choose the Right Family Floater Insurance Plan?
To choose the appropriate family floater insurance plan, you must consider the factors below:
- Policy Terms
Before purchasing any health insurance policy, check the policy terms and conditions to know what exactly it covers.
- Maximum Age for Renewal
Indian insurance providers had set the maximum cap on entry age from 65 to 75. However, the Insurance Regulatory and Development Authority of India (IRDAI) has directed all the insurers to offer lifelong renewability.
- Sub-Limits
Check the sub-limits for sub-categories before choosing a health insurance plan. For example, in a particular health plan, the sum insured may be ₹5 lakh. However, there can be a sublimit of ₹50,000 on hospitalisation expenses and ₹40,000 on medicines.
- Value Added Features
Check whether your family floater insurance plan offers add-ons like 24×7 medical advice, health check-ups, discounts on medicines, and so on.
Final Thought
Family floater health plans can be the right choice for you if you want your entire family covered under a single premium. Before purchasing this policy, you must check the policy terms, maximum age for renewal, and other value-added features.
Moreover, to meet your family’s exact needs, compare the policy quotes and coverage limits of different health insurance plans.
