Importance of Family Floater Health Insurance Plan

In India, health insurance policies are of two types, individual health insurance and family health insurance. Individual health insurance plans, as the name suggests, offers protection only to a single person. You can buy one for yourself or for your spouse. On other hand, a family policy covers the full family under a single-family floater plan, which means you need not purchase multiple insurance policies for your family members.

What is a family floater health insurance policy?

A family floater health insurance plan is a type of health insurance under which all the family members can be covered by paying only one premium. If there are multiple claims at the same time, the sum assured will be split amongst all family members. This policy is beneficial if you have more than two members of your family. The family floater health insurance policy is cost-effective as you get cover for all family members with a single premium.

How does a family floater health insurance plan work?

Let take the example of Raj & Udhay. Both of them have a family floater health insurance plan that covers their respective families. On one side, Raj has a family floater policy with a sum insured of Rs. 10 lakhs that covers his wife and children. On the other hand, Udhay has a family floater policy with a sum insured of Rs. 20 lakhs that covers his parents, his wife and his kids. Let’s look at how their plans help them during a medical emergency.

Scenario 1: Raj falls sick and requires hospitalization. His medical bill amounts to Rs. 3 lakh. After a few months, his wife gets dengue and also requires hospitalization. Her hospital expenses add-up to Rs. 1 lakh. In this case, Raj’s family floater health insurance policy will cover both hospital bills and still have Rs. 6 lakhs of sum insured remaining for the rest of the coverage tenure.

Scenario 2: Udhay’s family all go out for an outing where they eat some street food and suffer from food poisoning. Due to this, four of his family members land-up in the hospital. The total hospital bill amounts to Rs. 4 lakhs. Fortunately, his family floater health insurance policy will cover all his family’s medical expenses with ease and 16 lakhs of cover will still be available to Udhay & his family until the coverage period comes to an end.

What are the advantages of family health insurance?

Should you get a family floater plan or an individual plan for each family member – caught in two minds? Well, the choice ultimately boils down to your personal needs & preferences. However, family floater plans have several advantages over an individual health insurance policy. Some of these benefits include:

Easier to manage -

One of the best parts about a family health insurance policy is that it saves the hassle of maintaining multiple policies. It covers your entire family under one policy including the extended family and your in-laws.

More affordable -

A family floater health insurance policy is a lot more cost-effective than an individual policy. These plans usually offer a large sum insured at a much lower premium as compared to individual health insurance plans.

Higher sum insured -

Sum insured in a family floater plan is set higher to cover for the entire family. This will ensure that if two people fall ill at the same time, there won't be a shortage of funds. This is one of the best benefits of family health insurance plans. 

Reinstatement value -

In case the sum assured gets exhausted while treating someone, a few insurers offer 100% restoration of the sum insured. This ensures that you still have coverage despite the fact that the sum insured has already been fully utilized.

Better tax benefits -

The family floater plan also gives you tax benefits under Section 80D of the Income Tax Act. You can avail deductions up to Rs. 75,000 on your annual income if you include your senior citizen parent or in-laws in your family health insurance plan.

What do family floater plans cover?

The coverage of a family health insurance policy will differ from one insurance provider to the next. That being said, these plans usually offer wholesome coverage against medical expenses. This ensures that, in case of a medical emergency, you can focus fully on the wellbeing of your loved ones instead of worrying about the medical bills. The best family floater plans will offer coverage for the following:

Daycare procedures –

Medical procedures that require less than 24 hours of hospitalization are known as daycare procedures. The most common examples of daycare procedures include chemotherapy, cataract, tonsillectomy, etc. The best family floater plans will cover 160+ such daycare procedures.

Surgeries –

Operations, both major and minor are usually covered by a family floater health insurance policy. However, you should check the list of surgeries covered by every insurance provider as it usually differs from one plan to the next.

Room Rent –

This is the per day room/bed charge that one has to pay in case of hospitalization. It is usually one of the biggest heads of expense in case of hospitalization. Fortunately, most family floater plans will cover this cost for you! The best plans will also cover hospital registration, service charges, etc.

Health check-ups & vaccination expenses –

Keeping tabs on our health is important, but it can also turn into a costly affair, especially if the entire family has to get a check-up. Thankfully, a good family floater health insurance policy will offer complimentary medical check-ups at regular intervals. Also, a good plan will also cover vaccination expenses, something that can be extremely helpful, especially in this time of COVID-19.

Pre-hospitalization & post-hospitalization medical expenses –

In case of an illness or medical condition, healthcare expenses can begin well before hospitalization and can continue well after discharge. Keeping this in mind, a family floater health insurance policy will usually cover pre and post-hospitalization expenses. Some plans will also allow you to extend this coverage by paying higher premiums.

AYUSH –

AYUSH stands for Ayurveda, Yoga, Unani, Sidha, and Homeopathy. These are alternative Ayush treatment options and can be explored as a substitute to allopathic treatment. The best part is that most family floater health insurance policies offer coverage for AYUSH hospitalization expenses.

How to buy a family floater health insurance plan?

That’s simple! Just walk into one of our branches and let our team of insurance experts guide you through the entire purchase process. You will leave with a family floater health insurance plan that ticks all your boxes and meets all your needs. You can receive the exact same level of service, help and guidance by visiting one of our authorized agents. Put together, we have over 20,000 agents & branches spread all across the country – making it super easy for you to find one of our touch points and buy a plan!

Unable to visit the branch or find an authorized agent? No problem! You can also visit our virtual office or our website and buy a family floater health insurance plan online. The process is extremely easy, almost like taking a walk in the park! All you have to do is breeze through these 3 simple steps.

  1. Fill in your details: Just click here and fill out all the details required. Based on the information you provide, we will offer you an instant quotation for your family floater health insurance plan.
  2. Customize the plan: You can change the sum insured, include the add-ons you want, and customize the plan as per your exact needs and requirement. The quotation will be updated based on the changes you make to the coverage of the plan.
  3. Buy the plan: Once you are satisfied with the specification of your family floater health insurance plan, you can proceed to the next step. Here you will have to fill out your nominee, KYC & emergency details. After you’ve filled out all this information, just make the payment and the plan is yours!

Benefits of buying a family floater plan online:

If you wish to buy family floater plan from one of our branches, know that our doors are always open! You can drop by anytime during office hours and our customer support team will see to it that your insurance needs are taken care off. However, you can also choose to buy a family floater health insurance plan online - in doing so, you will enjoy the following benefits:

  • A much easier process: The online process is almost effortless – you don’t have to brave the sun or the rain, nor do you have to endure traffic snarls. You can buy a family floater plan online with a few clicks and taps on your computer, laptop or mobile phone.
  • Buy as per your convenience: You do not need to adhere to our branch timings when you buy a family floater health insurance policy online. You can make the purchase whenever you like, from wherever you like – it’s totally up to you!
  • Saves your time: When you buy family floater health insurance online, you save on the travel time required to visit the branch. Not only that, the online process is much easier and can be completed in mere minutes!
  • Paperless: Hate filling forms and submitting documents? Well, then an online family floater plan is for you! You can type out all your information and upload any documents required with ease. Not to mention, since the process is completely online, you will receive a soft copy of your policy document which will stay safe in your email inbox

Exclusions of a family floater health insurance policy:

  • By default, pre-existing diseases are not covered under the family floater plan. They are covered after the completion of the waiting period.
  • Treatment due to suicide attempts and nuclear attacks are not covered.
  • Treatment due to consumption of drugs, congenital diseases, etc. are not covered.

What are the features of a family insurance plan?

The selling point of a family floater plan is the fact that the sum assured can be increased or decreased according to the needs of the family. The primary applicant can take into consideration factors like risk, location, the average age of the policyholders, etc.

Like any other health insurance policy, a family floater allows a cashless facility. You can avail of the cashless facility by getting treatment in any of the hospitals that are part of the insurer's network. In case of an emergency, if treatment is taken in non-network hospital you can pay the initial cost of treatment and later apply for reimbursement. 

A family floater health insurance policy also covers everyday room rent under a specific limit in case of hospitalization.

Some floater policies are bought on a co-pay basis, here, the insurer pays a certain amount, and the rest must be paid out of your own pocket. The percentage of the payment by each party is determined at the time of buying the policy.

If the sum assured is higher, the insurance companies may ask you to undergo a medical examination before issuing the policy. 

Who should buy a family floater policy?

A family floater health insurance policy is ideal for people who are married with children. The policy also covers senior citizens and extended family members, allowing people to include their parents and in-laws in the policy.

If you are married with children and are looking for an inclusive policy, a family floater policy is the best health insurance plan for you. It is also great for families with no history of health issues. However, if one or two members of your family suffer from any adverse medical conditions, then an individual health insurance policy might turn out to be a better option in the long run.

Learn more about the health insurance coverage in detail