Photo: iStock
Photo: iStock

What are family floater policies and who should buy them

The biggest benefit of a floater policy is that it is cost effective because it insures the entire family under one sum insured limit

Many people looking for a health insurance policy for their families wonder if they should take a family floater or individual policies for different family members. 

A family floater policy, as the name suggests, offers to provide health insurance to the entire family unit in a single policy. In some cases, this policy can also include family members beyond the nuclear family of parents and young children, like grandparents. A floater policy is like any health plan that comes with a list of benefits and exclusions, the only difference being that it considers the entire family as one unit. So if one member of the family makes a claim in a policy year, the cover reduces by that much on the entire unit or family for the remaining policy year.

The biggest benefit of a floater policy is that it is cost effective because it insures the entire family under one sum insured limit. The insurance premium on a family floater policy is determined by the age of the oldest member, so younger families with less age gaps benefit the most from family floater plans.

Keep in mind that you need to take adequate amount of cover under the floater plan because if one member of the family makes a claim, the sum insured could drop drastically. 

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