Individual Health Insurance Vs Family Floater

Posted by Hannah Punitha on Fri, Feb 5, 2010  
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Wondering about the best possible way to secure your family health?

Do you need a health insurance policy?

Individual Health Insurance and Family Floater Plans are the options kept in front of you when it comes to securing your family’s health in India.

What is a family floater?

Family floater is a health policy which covers more than one family member for a fixed cover. The fixed cover is shared by all the family members. i.e. if Ravi and Family of four take a cover of 5 lakhs, the entire family can claim up to Rs. 5 lakhs together. Generally two adults and two children are covered in a floater policy.

The positives- It is less expensive than and Individual health policy- It is great for young adults with members having low health risk.

  • -Your immediate family members like your spouse and kids are added first.
  • - The family member gets a greater claim amount compared to what he might get in an individual cover in case of only one claim in a year which is another huge benefit.

Ex: Mr. Mahi and Mr. Robert are good friends. Both of them have realized the importance of health insurance and have bought individual health insurance policies. Mr. Mahi has gone one step ahead of these two and bought a cover of Rs. 3 lakh for his family too.

In a freak car accident, Mr. Mahi and  Mr. Robert were injured badly. The medical bill came up to Rs.2.5 lakh for both of them. Mr.Mahi and Mr. Robert both had a cover of Rs.1 lakh through their individual policies; Mr. Mahi  had an additional cover of Rs. 3 lakh in his family floater so he did not have to pay a single penny while Mr. Robert had to shell out Rs 1.50 lakh from his pocket.

Thus, Mr. Mahi had doubly secured himself and also saved Rs1.5lakhs.

The Negatives- If there is more than one claim in a family in a year; the other family members are left with little cover which is the greatest disadvantage of a floater.

- The policy is valid

  • Until the proposer turns 60 or 65 or
  • The maximum age of renewability depending on the policy.
  • - Generally, you can only cover your immediate family members, and your parents get cover in a family floater only with specific companies.
  • In and Individual Health Policy each of the insured member is entitled to the entire amount separately.




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