InvestorQ : What is a family floater insurance policy?
Rohan Bhadani made post

What is a family floater insurance policy?

Rishita Das answered.
3 years ago

A family floater health plan is an insurance plan that offers insurance coverage to entire families. Unlike individual health insurance plans, a family floater medical insurance policy does not focus on only the individual policyholder, and hence, these plans are ideal for families. This plan acts as an umbrella plan for the entire family as it covers the full family from unforeseen medical expenses.

Buying a family floater plan works immensely for families. This is because not only does it help save the entire family a lot of time and efforts as you don’t have to buy and manage multiple individual health plans, but it also comes to be relatively cheaper than taking individual policies for all family members.

All family floater insurance plans cover not only the policyholder, but his/her spouse, and dependent children. Do note, that there are a few insurers who allow policyholders to include their dependent siblings, parents, and parents-in-laws.

Though family floater plans are quiet famous in India, one should do sound research before buying any medical insurance plan. Most family floater insurance plans cover up to 15 relationships.

As your entire family gets covered under one family floater policy, you don’t have to go through the hassle of purchasing and maintaining different policies for each member.

While selecting a policy, you must choose one that offers lifetime renewability and covers your family members’ pre-existing conditions. Some riders, such as critical illness rider, can be added to the insurance policy to offer coverage against specified critical illnesses.