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Family Floater Plan: How is it Different from an Individual Policy?

Is a family floater health insurance plan really cheaper than individual medical insurance? When you take into consideration the relative covers required for every family member; floater policies work out to be cheaper. Apart from that, the family members also enjoy a higher sum assured.

So, how much do they cost? A plan in which the oldest family member is between 25 and 40 years of age usually costs around Rs 15,000 for a year. Of course, this is generally for families with only three members –husband, wife and a young child. It is a good idea to keep in mind the rates of healthcare inflation at the time of taking the policy. This will ensure that you opt for sufficient sum assured to take care of any health needs of your family members.

A More Economical Option

Family floaters are best suited when the eldest family member is not more than 45 years old. And, it is probably a more economical option for nuclear families. However, an important consideration is the related health of each member.

For instance, if a single family member suffers from a serious medical condition; then the claims would also be high. This means that in a particular year, the rest of the family would have very little or no coverage during the remainder period. So, how do we make floaters economical in such cases?

For extended families, meaning families with senior citizens, it is best to follow a combination approach. So, while a floater plan can cover the husband, wife and children; an individual plan can cover the grandparent(s). In cases where the elderly parents need cover, two floater plans can be taken, where one is for the nuclear family and one for the grandparents. This will be more economical than senior citizen health insurance covers.

More Lucrative at the Time of Maturity

Family floater plans enjoy:

  • Deductions under section 80D of the Income Tax Act
  • Easy addition of a family member at the time of renewal or even in-between the term period. For instance, adding your new born baby to the plan.
  • A higher sum assured is available compared to individual medical insurance policies. For instance, a younger family might not make many claims during the policy period. So, at the time of renewal, they will be able to enjoy a higher sum assured at relatively low premium rates.

One of the most attractive benefits of a  family floater plan is that you can take care of the entire family with just one policy. This is a better and simpler solution, rather than choosing to manage four or five individual plans.

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