Family Floater Health Insurance

Insurance

A family floater health insurance policy covers the entire family under one sum assured. If the policy is Rs 10L family floater, any family member can use up to Rs 10L in a year, but the total for all members combined cannot exceed Rs 10L in a policy year.

In detail

Family floater vs individual policies:nFloater: one sum insured shared by family, lower premium, risk of one member exhausting covernIndividual: each member has own sum insured, higher premium, better in families with chronic conditionsnnIdeal family floater sum insured:nYoung family (couple + 2 kids, tier 1 city): minimum Rs 15-20LnFamily with parents above 60: parents should have separate policy (floater premium shoots up with age)nnNCB (No Claim Bonus): floater also gets NCB for claim-free years -- typically 10-50% increase in sum insured.

Formula

Floater premium < Sum of individual premiumsnExample: Rs 10L floater for couple + 2 kids = Rs 18,000nFour individual Rs 5L policies = Rs 22,000 total

Real-life example

🇮🇳 India example

Riya (32) + husband (35) + 2 kids (6 and 8) buy Rs 20L family floater at Rs 22,000/year. In one year: younger child hospitalized for Rs 1.2L appendix. Pool reduced to Rs 18.8L for rest of year. No other claims -- pool resets to Rs 20L + 10% NCB = Rs 22L for next year.

Frequently asked questions

When should I not use a family floater and get individual policies instead? ▼
When any member has a chronic condition (diabetes, heart issues) that may exhaust the floater. When parents above 60 are in the family -- they can exhaust the pool leaving younger members under-covered. Separate individual/senior citizen policy for parents above 60 is usually better.