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Understanding Family Floater Policy in Health Insurance

In a family floater plan, each covered member is free to use the sum insured up to the full amount.

  • 23 Jan 2023
  • 3 min read


As the name implies, a family floater health insurance covers the entire family under a single policy. The policy benefits apply to your spouse, dependent children, and dependent parents. Sometimes siblings are also covered by this plan, but you must check this with your insurer.

Here Is How Family Floater Plan Works

Assume you have a Rs 1,000,000 worth family floater insurance policy. Along with you, the plan covers your spouse and children. Your spouse and child became severely ill within a year of purchasing the policy. The treatment bill for your spouse is approximately Rs 800,000, and that for your child is around Rs 200,000. In this case, the sum insured of Rs 1,000,000 will cover both sets of bills.

In a family floater plan, each covered member is free to use the sum insured up to the full amount. However, if one member uses the entire amount, the other member will be denied benefits. To overcome this, you can supplement your policy with a reinstatement add-on. It will restore the sum insured, allowing other covered members to benefit from the coverage.

Family Floater Policy Coverage

  • The policy reimburses for pre and post-hospitalisation expenses.
  • This family health insurance covers daycare procedures such as minor surgeries and anaesthesia.
  • There is also a provision for medical expenses related to organ donors for a specific time.
  • You can also raise medical bills related to in-patient and domiciliary expenses.
  • In case you or a loved one has contracted coronavirus, the associated medical bills will be reimbursed.

A family floater plan is essential today. However, before choosing an insurer, you should consider the coverage scope, renewability options, ease of adding new members and claim settlement process.

Also read:

  • family floater plan
  • family health insurance
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