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Important Things to Keep In Mind While Buying a Family Floater Plan

Important Things to Keep In Mind While Buying a Family Floater Plan
August 03, 2021


The outbreak of the coronavirus pandemic made us realise just how quickly life can change. Everything that happened helped us understand the importance of protecting ourselves and our family members with a good health insurance policy. Some people opt to purchase individual plans for each family member. Others prefer to opt for a family floater health plan. With a family floater, multiple relatives receive cover under a single policy. They all share the sum assured amount.

When you’re looking for health insurance plans in India for family, you must consider whether an individual or family floater makes more sense for you. Both policies have advantages. Before you make your decision, gather as much information as possible about family floater plans.

Who Gets Covered in a Family Floater Health Plan?

Most family floaters cover a couple and their dependent children. Many insurance providers allow you to add other family members as well. So, you can get coverage for your parents, yourself and your spouse, and your young children under the same policy. The eligibility criteria for these plans changes from one insurance provider to the next. For example, some policies allow you to cover children who are 25-years-old. Others only allow children as dependents up to the age of 23.

How Much Health Cover Does My Family Need?

Various factors will influence this decision. Start by asking yourself how many people you’d like to cover under the policy. We can look at an example to understand the amount of cover required. Ramesh, who is 35, wants to purchase a family floater for himself, his 32-year-old wife, and his two kids aged 7 and 5. Since all four individuals are quite healthy, they would only need to use their health policy in an emergency. So, insurance cover of roughly INR 10 lakhs per year should suffice. The amount may seem like a lot. But, once you factor in medical inflation, it’s safer to opt for a higher sum insured amount.

Covering older parents and in-laws under the policy might get tricky. Senior citizens often succumb to health issues and could end up making a few claims during a single policy year. They might use up a large chunk of the sum insured, leaving the rest of the family with hardly any protection. So, when you’re adding your elderly parents to your family floater health plan, you may need to opt for an even higher sum insured.

Features of Health Insurance Plans in India for Family

In today’s competitive insurance market, each insurance provider will offer different features and benefits. When you’re looking for a family floater health plan, you must check for these features:

1. The Age Criteria

Family floater plans might have different minimum and maximum age limits than individual policies. Ideally, find an insurer that allows you to cover your children right from the time they’re born until they reach the age of 25 and can stand on their own two feet. For older parents, make sure they can enjoy coverage even after the age of 60 and 70. Typically, you want a health plan that allows lifetime renewals.

2. The Waiting Periods

Check the waiting periods for pre-existing illnesses and other health procedures before you choose a plan. Most policies will ask you to wait at least two years before you are eligible to make claims for pre-existing issues. You should always check these details before purchasing a plan.

3. The Hospital Network

Every health insurance provider has a list of network hospitals where you can enjoy cashless claims. Before you purchase a family floater health plan, you should check whether your preferred medical facility is on the cashless network. If they are, it will make your claims process much better.

4. The No Claim Bonus

For every policy year that you do not file a claim, your insurance provider rewards you with a No Claim Bonus (NCB). The bonus increases your sum insured amount. So, you can enjoy higher cover for the same price.

Benefits of Family Floater Policies

Should you opt to purchase a family floater health plan, you can enjoy the following benefits:

1. Higher Sum Insured

Since you’re covering many family members under a single policy, you can enjoy a higher sum insured amount for an affordable premium.

2. Quick Additions

With a family floater, adding a new family member to the policy is quick and easy.

3. Continuous Cover

Most family floater policies offer cover for multiple years together. So, instead of paying an annual premium, you pay once every two or three years.

Everybody always wants to do the best they can to look after their family members. With a family floater health plan, you can get your family members the insurance cover they need to enjoy complete peace of mind.

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Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

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Vishal Subharwal Vishal Subharwal

Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.

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