Family Floater Health Insurance
You can buy a single health insurance policy for your entire family, including spouse, dependent children, dependent parents, and dependent parents-in-law, with the sum insured shared among all the insureds. Usually, up to six people are covered in a policy. This is called a family floater cover and will cost you less than an individual health insurance policy for each family member.
Exclusions under family floater health insurance policy
The following expenses will NOT be covered.
- Hospitalization due to abuse of alcohol or drugs
- Sexually transmitted iseases (STD) like AIDS or Herpes
- Infertility treatment and treatment for complications in pregnancy
- Hospitalization due to a suicide attempt of the insured
- Dental and cosmetic surgery except if necessitated due to an accident
Charges and Expenses
Advantages of Family Floater Health Insurance
Coverage for multiple members
With a family floater health insurance plan, multiple family members can be covered under a single policy. This makes it easier to manage and saves you the hassle of maintaining separate policies for each family member.
Family floater health insurance plans are usually more cost-effective compared to buying individual policies for each family member. By pooling the coverage, the premium cost is shared among all the members.
Flexibility in Sum Insured
With a family floater plan, the sum insured can be utilized by any of the insured members. This provides flexibility in case any one member requires a higher sum insured.
Premiums paid towards family floater health insurance are eligible for tax benefits under section 80D of the Income Tax Act.
No age limit
Unlike individual health insurance plans, which have an age limit for enrollment, family floater plans do not have any such restrictions.
Most family floater health insurance plans are renewable for life, which provides long-term coverage for the insured family.
Who is eligible for family floater health insurance?
You can learn more from our asked questions
Once there is a claim in a family floater policy, what happens to the sum insured for other family members?
Once a claim is paid for part of the sum insured, the rest of the sum insured is still available to all members of the family for that policy year. On renewal, the full sum insured is again available to all members for a year.
What happens to the family floater coverage if one of the covered family members dies?
If one of the family members covered under a family floater policy dies, the policy continues to cover the other members until renewal. If the member who died is the policyholder, the policy is transferred to the next oldest member covered under the policy and coverage continues. It is possible to opt for a lower sum insured with a refund of premium or do it at renewal.
Is it better to buy a family floater or individual insurance policies?
Each policy has its advantages. A family floater has a larger sum insured shared by all family members and a lower premium rate. An individual policy can give the policyholder exclusive rights to the full sum insured and will cost relatively higher.