Health insurance plans are essential for safeguarding against rising medical expenses, yet only about 37% of Indians are covered. The high cost of individual policies often discourages families from getting insured.

This is where floater health insurance plans come in, with a single premium for the whole family. Let us dive into what it is and how it works below. 

What Do Floater Health Insurance Plans Mean?

A floater health insurance plans covers multiple people under a single sum insured. The term ‘floater’ means that the sum insured amount floats for every member insured under the plan. 

These plans are ideal for families who do not want to purchase separate plans for each member. Not only does it save the hassle of maintaining multiple insurance policies, but it also saves your money. 

You can add your immediate family members to the family floater health insurance, including your spouse, parents and dependent children. Some comprehensive plans also allow you to add in-laws and other members. It is a perfect policy for young families without any severe health issues. 

Difference Between Floater Plans and Individual Health Insurance Plans

Now that you know what a floater health insurance is, let us understand how it differs from an individual health insurance policy:

Criteria	Floater Insurance Plans	Individual Insurance Plans
Sum Insured Amount	Shared among family members	Everyone gets a separate sum insured
Coverage	All family members	Individual people
Premiums	Single premium for every member	Multiple premiums for every member
Affordability	Cheaper than an individual policy	Expensive
Claim Process	Any family member under the policy can claim	Only the insured individual can claim
Risk	A single large can drain the sum insured	Each person has their own limit
Average Cost	₹900 to ₹1,800/ month for ₹10 lakh (approximately)	₹400 to ₹500 per month per person for ₹10 lakh (approximately)

How Do Floater Health Insurance Plans Work? 

Let us understand how a family floater health insurance plan works with an example: 

Mr Dey has 2 children aged 10 and 5 years. He wants to buy a floater health insurance plan for his family. He buys a health insurance policy for 15 lakh, covering 2 children (up to 25 years of age) and 2 adults for 3 years. 

To get this coverage, he pays an annual premium of ₹25,000. However, during the policy period, his wife suffers a major accident and is rushed to the hospital. The treatment required ₹4 lakh, which his insurer pays directly to the hospital. 

Therefore, his remaining sum-insured will be ₹11 lakh, which he and his family can use later. 

What are the Advantages of Floater Insurance Plans? 

Just as understanding how a floater health insurance plan works, knowing its advantages is also essential. Let us see how these plans help your family:

• Coverage Flexibility 

The biggest advantage of a family floater health insurance plan is its flexible coverage. There is no fixed amount that a family member has to use. Anyone can use the sum insured amount according to their needs. Therefore, if a family member has extensive health needs, they can opt for this insurance without worrying about any limits. 

• Easier to Manage 

Buying a family floater policy lets you group all your needs under one plan. This means you don’t need to maintain separate health insurance documents for every member of your family. Moreover, you don’t have to remember the separate renewal dates, leaving less chance of missing the renewal period. 

• Cost-Effective 

The normal middle-class cannot afford to pay thousands for individual plans. Therefore, family floater plans encourage people to invest in health insurance at an affordable cost. It aids families in need while also ensuring that no one is left out of coverage when needed. 

What Factors Affect the Floater Health Insurance Plans’ Premiums? 

Your health insurance premiums are decided based on various factors. These are: 

• Family Size 

If you have a large family with children and parents, you need to pay higher premiums to ensure adequate coverage for everyone. Moreover, insurance companies charge greater premiums for senior citizens as they represent a high-risk profile. 

• Insured Members Age 

Health insurance is best bought when young. This means the sooner you purchase health insurance for your family, the lower your premiums will be. As people age, their chances of developing chronic diseases increase, which leads to higher premiums. 

• Location 

Location plays a massive role in deciding your floater health insurance premiums. If you are based in a Tier 1 city, your hospital bills will be more expensive than in a Tier 2 or Tier 3 city. Moreover, the part of the city you live in also decides your premium. 

The Bottom Line 

Family floater health insurance plans are a boon for families in India. It provides you with access to quality healthcare, making it easier for you to navigate emergencies. However, before you invest, make sure to read the brochure and policy wording to understand the policy clauses. It will help you make an informed decision.