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Family Health Insurance VS Family Floater Plan - Advantages and Benefits

Aman Khanna

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When it comes to picking up a family health insurance plan, things can get confusing as there are many types of products available in the market.

When it comes to picking the family health insurance schemes, family health insurance, and family floater plan may sound similar, but they are quite different.

The family floater plan is similar to a family trying to use a single bed for the entire family, whereas the family health insurance plan denotes using three bed sheets for a family of 3 people.

Let’s go ahead and provide you with some quick differences between the two family health insurance plans in this short post.

1. Family Floater Plan

The differences between these two policies start in their definition in the very beginning. In simpler terms, a family floater plan is a single plan that covers the entire family in a single insurance plan.

For example – you have a family floater plan of Rs.5 lakh, you can get the reimbursement for a maximum Rs.5 lakh and it does not mean who falls sick – you, your spouse, or your child.

2. Family Health Insurance Policy

In comparison to the family floater plan, the family health insurance policy has the provision for one insurance policy each for each member of the family. Nonetheless, they are purchased together and may include the same assured sum.

For example – the assured sum that you have opted for is Rs.3 lakh, for each policy. In this case, the total assured sum will be Rs.8 lakh. Overall, it is similar to buying four policies schemes together.

a) The assured sum

The key difference lies in the assured sum in the insurance policy. If you purchase a family health insurance policy that offers an assured sum of Rs.5 lakh, then each family member will be entitled to get a reimbursement of up to Rs.2 lakh only.

b) The risk factors

The premium amount may be higher or lower as they may depend on many conditions. When you avail a family floater plan, the service providers take entire family’s risk together. On the other hand, the family health insurance family, the risk factor for each member is accounted for separately.

c)Senior citizens

A family floater plan may be costlier if you have a family member whose age is over 60 years. It is because insurance is always expensive for senior citizens as they are considered high-risk individuals which rises up to the total premium amount. In such a scenario, considering an individual plan for senior citizens and a family floater plan for other members of the family is a good move.

d)The coverage potential

When you opt for the family health insurance scheme, you are entitled to avail enough coverage for each member of the family as each is entitled to his/her amount of coverage. It is handy in instances where there are many members of the family that are vulnerable to critical illness as the cost of such treatments are on the higher side.

For instance, in case of an unfortunate accident involving any two or more members of the family, it’s worthwhile to note that a family floater plan may not be enough.

The Bottom Line

Now that you are aware of the major differences between the family floater plan and family health insurance plan , it may be easier for you to pick a deal as per your needs.

You can compare most of the plans from leading service providers online and opt for a scheme that best suits your needs and affordability.


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