discussed are some factors to opt for a floater Health Insurance cover.
If you opt for this type of cover, the primary benefit is better Risk
coverage. In case of a family floater policy, the primary determinant of
the cost or Premium of the Policy is the age of the senior most member
and his medical history.
If you are looking to get a medical insurance for all members of your family, there are two ways to go about this -
1. Buy a separate health policy for each member of your family
2. Buy a floater health insurance cover, which is nothing but a single health policy that covers all members of a family
How is floater health insurance cover different?
you opt for this type of cover, the primary benefit is better risk
coverage. To explain this point, let’s take an example of a family of
three members. As discussed earlier, you may either choose to buy three
distinct insurance policies that individually cover all three members
for a sum of Rs 1 lakh each or you buy one floater policy that covers
the entire family for a cover of 3 lakhs. In case of a family floater
policy if either of the family members is hospitalized, he or she would
be individually eligible for a cover of Rs 3 lakhs. So, if the
hospitalization costs are 2.5 lakhs, entire amount will be reimbursed by
the insurance company. While in case of an individual policy, the
insurance cover would be restricted to just 1 lakh and you would have to
shell out the rest out of pocket. So, it is wise to opt for a floater
cover rather than buying individual policies for each member.
the risk with this policy is that in case all three members of a
family are hospitalized in the same year or together, the risk Coverage
will still be restricted to a sum of Rs 3 lakhs.
Cost of a floater cover as compared to individual health insurance policy
case of a family floater policy, the primary determinant of the cost or
premium of the policy is the age of the senior most member and his
medical history. The premium cost for a floater plan will be lower than
purchasing individual policies for each family member, if the family is
young and healthy, but substantially high otherwise. Hence, it would
make sense to go for a floater cover if the senior most person in family
is young and healthy enough.
Continuity of floater policy if the Proposer dies
who buy a family floater policy are often concerned that what if there
is an unexpected demise of the proposer. However, there is nothing to be
worried about, as coverage under the floater policy will still
continue. The other members covered under the policy should make sure
that they inform the insurance company and agree to become the new
What if the child Insured under the floater policy crosses the upper age limit?
floater policy extends insurance coverage to a child only upto a
certain age. If the child crosses the age, he becomes ineligible for
coverage under the policy. In such a situation, the policy premiums are