How does the Floater Concept Work in Family Health Insurance?

The floater concept in family health insurance works for covering multiple members under a single policy. In this approach, a sum insured amount is shared further among all insured members of the family. Any member is eligible to use the coverage when required.

Choosing the right plan offers flexibility, cost savings, and easy management when compared to any standard plan. This is beneficial, particularly for young and healthy families.

How does a Family Floater Work in Health Insurance?

Let’s understand how a family floater works in health insurance using an example:

Suppose Mr. Brown purchases a family floater health insurance with a sum insured of ₹6 lakh for himself, his children, and his wife with an annual premium of ₹10,000. During the policy tenure, the maximum amount he can claim for his family is ₹6 lakh.

If the first claim amount is ₹3 lakh, the coverage available for the remaining policy tenure reduces to ₹3 lakh. However, if there is a single claim amount of ₹7 lakh, the insurer is responsible to pay up to the sum insured of ₹6 lakh, and the remaining ₹1 lakh will be paid by Mr. Brown out of his pocket.

Features of Family Floater Health Insurance

The distinguishing features of a family floater health insurance are:

1. Shared Sum Insured

Family floater plans work on the principle of shared risks. This plan ensures sharing the total sum insured among all members involved under the policy.

2. Cost-Effective Premiums

A family floater health plan comprises affordable premiums when compared with individual health insurance plans.

3. Single Plan with Multiple Members

Under a single plan, a floater in family health insurance ensures all members of the family are covered.

What are the Benefits of Family Floater Health Insurance?

Here are several benefits of family floater health insurance:

1. Comprehensive Coverage for Family Members

A family floater plan typically covers the primary insured individual, their parents, spouse, and dependent children. Some plans also come up with additional coverage for extended family members.

2. Cashless in-patient Hospitalisation

Family floater plans provide cashless inpatient hospitalisation. Under this, the insured individual can avail quality treatment from well-recognised hospitals without paying a lump sum amount upfront to meet the medical expenses.

3. Room Rent in Hospital

Family floater plans provide adequate coverage for the expenses of room rent during hospitalisation. For this, the insured individual can focus more on receiving quality medical care and not worry about the costs of accommodation.

4. Ambulance Costs Coverage

During medical emergencies, if you need ambulance services, the family floater plan covers you. This plan includes the costs of ambulance transportation to the hospital under the policy.

Final Words

Choosing the floater plan with basic family health insurance makes the process simple and convenient. It helps in better and improved utilisation of the sum insured amount. However, under a family floater health insurance, claims made by one member reduce the claim amount for another individual.

Therefore, reviewing the health risks of family members and choosing a proper sum insured is essential before purchasing a floater plan.