When should you take it. tips for kids, old parents etc.?
A Family Floater Plan is the health insurance that covers multiple members of the family for a
fixed cover. The coverage amount can be used by any or all the members covered under the plan
and for any number of times within the time and the cost limit of the policy. The floater policy
generally covers the individual, spouse and children. Parents, siblings and in-laws also can be
included under this if specified by the insurer.
How does Floater Plan work?
For example, if a family has 4 members and each has individual health plan of 1 lac, then each
member of the family is covered for 1 lac limit. In case a member exceeds one lac during a
particular coverage period and incurred a total expenditure of 2 lacs, then the additional
one lac medical expense is to be bore by the family. At the same time it is quite possible that
the other member(s) of the family need not use the insurance for the same coverage period. Now,
if all members were covered under a single floater coverage of 4 lacs, then the 2 lac expenditure
of one member could have been covered by the plan and no added cost (1 lac in this above case)
would have been imposed for the family. The floater coverage would have been sufficient and
financially easy for the family.
When should you take it? -- Tips for kids, old parents
It is a good idea many a times to go for a family floater insurance due to several benefits as
Since it is a single policy covering the entire family, it reduces the hassle of
maintaining individual policies
It gives more flexibility in cases where one or two members need more coverage
than the others in the plan
Inclusion of older parents is possible. This gives a higher available coverage
for the older members since younger members do not need the mediclaim as much,
still remain covered under the plan
Maternity and new born coverage is added benefit. These generally comes after
a waiting period
Availability of discounts and incentives on family floaters make these
Tax benefits on premium paid is an added plus. A max of 55 thousand rupees tax
benefit is possible where up to 25,000 rupees is for self and 30,000 rupees is for
But a floater plan is not always the best option for the family insurance coverage.
If there are some family members who have medical history of high risk health
factors like heart disease, smoking or diabetes, including them in the floater
plan increases the premium. It is better to take separate insurance for high risk
members. The premium for low health risk members' floater plan is much moderate.
The family floater plans are priced based on the highest age of the family member.
So if there is much age difference between the senior most member and the other
members of the family, it is advisable to get a separate insurance plan for the
senior member. It reduces premium for younger members' floater plan significantly.
The policy gets void once the senior most member reaches the maximum allowable age
limit. This causes the loss of continuous coverage that they got earlier under family
Also senior members lose their claim history and pre-existing disease coverage
benefits from the continuous renewal of the earlier policies.
Selecting the right Floater plan
With easy access to internet, it is comfortable to select a floater plan for the family from
the dozens of plans offered by companies. Good to know the claim filing and settling process,
cashless hospitalization features and the exclusions from claim as offered by the company since
there might be some variation. 'No Pay Bonus' is the added feature for some plans where
incentives provided by the insurer for a claim-free year. You need to check the waiting period
for pre-existing diseases in case some member in your plan belongs to that category. They can
only claim for those conditions after waiting a pre-specified number of years.
It is a responsibility for you to understand the requirement of your family and choosing a best
fit plan that gives the required coverage benefit without compromising on the pocket.