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Discover the Differences: Family Health Insurance vs Family Floater Plan

TeamAckoJan 18, 2024

Health insurance is an essential part of most individual’s lives since it acts as a saviour during medical emergencies, ensuring the financial protection of your family. Health insurance plans like family health plans and floater plans are often considered the same, however, they are not so.

Therefore, here we will be discussing family health insurance vs family floater plan, understanding their points of difference and other essential details related to it.

Family Health Insurance vs Family Floater Plan

Contents

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What Does a Family Health Insurance Plan Mean?

A family health plan is a type of insurance that covers medical expenses of all the family members under one insurance policy. This plan includes pre and post-hospitalisation along with maternity benefits, and cashless hospitalisation facilities.

With affordable premiums, family health insurance is a great way to cover the expenses of all the family members in the same fixed sum. You can also get tax benefits in health insurance if you pay the insurance amount for your family.

However, you must choose the insurance plan according to your budget, which would ensure your convenience in paying the premiums on time.

What is a Family Floater Insurance Plan?

A family floater health insurance is another kind of medical insurance for your family. In this case, it covers the medical expenses of your immediate family members, including spouse and children.

In a family floater health plan, the fixed sum you get would be applicable only to your immediate family members. Hence, the premium you pay for this plan may not be as affordable as the former one.

However, under section 80D, you can get tax benefit in health insurance in a floater health plan as well.

Family Health Insurance v/s Family Floater Plan?

While both family health insurance plans and family floater health insurance come with their distinctive benefits and policies, they differ in certain matters. 

Below is a table regarding family health insurance v/s family floater plan, helping you to understand their differences accurately.

Points of Difference

Family Health Insurance

Family Floater Insurance

Meaning

It covers the medical expenses of all the insured members of a family.

It covers the medical expenses of immediate family members like spouses and children.

Benefits

It is an affordable option since it covers the medical expenses of all family members under one plan.

Easier to add new family members in a floater. For example, spouses and newborns.

Coverage

All members of your family.

Your immediate family members.

Ideal Choice

It is ideal for bigger families, where you can cover all their medical expenses under one sum insured.

It is ideal for nuclear families or couples, since the sum insured may not be sufficient to cover the medical expenses of more family members.

Drawbacks

Premiums can be costly in the cases of higher coverages.

The coverages cannot be increased with the addition of new family members to the floater.

We would recommend you go for a high sum insured in the case of a family insurance plan. It helps to ensure that the coverage is sufficient for all family members. Nonetheless, creating a budget and sticking to it while selecting a health insurance plan would help you make the right choices and decisions.

Final Takeaway

Overall, when opting for a family insurance plan, the cost of premium cannot be the only crucial point for you to consider. Be it a family insurance plan or the floater one, you must aim to get the maximum benefit of the policies. Do your research well to get the best insurance policy that matches your preferences.

Therefore, we hope to have cleared your doubts regarding family health insurance v/s family floater plan. So, you must buy a health insurance plan for your family to ensure a stress-free life for you, providing you with financial support for your medical emergencies.

Hence, sort out your preferences and budget, and wisely select the kind of medical insurance that would earn you maximum benefits.

Frequently Asked Questions (FAQs)

Given below are some of the common queries on family health insurance v/s family floater plan.

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What would happen if the sum of insurance gets exhausted?

In the case of most family health insurance plans, if the insurance sum gets exhausted before the stipulated time period, you will not get any further funds within the policy period.

What are the factors that can affect the premiums of a floater family health insurance?

Some of the factors that can affect the premiums of a floater family health insurance include:

  • The type of health insurance plan you are opting for.

  • Number of family members included in the insurance plan.

  • Age of each of your family members included in the health plan.

  • Medical histories of each family member who is included in your health insurance plan.

  • Any other add-ons in your insurance plan.

Do family health plans cover pre-existing diseases of the insured family members?

Yes, family health plans cover pre-existing diseases of the insured family members. However, they are often covered after 2-4 years of waiting period.

Is it possible to buy more than one family floater health plan?

Yes, you can go ahead and opt for more than one family floater health plan. Nonetheless, an insurance company would settle your claims in rateable proportions. 

What are the documents required to reimburse the family health insurance claim?

Given below are the documents that are required to reimburse your family health insurance claim:

  • Policy document

  • Medical/ hospital bills

  • Payment receipts of medical bills

  • Discharge summary from the hospital

  • Duly filled health insurance claim form

  • Consultation and diagnostic reports

Please note, that there can be more/ fewer documents required based on the type of insurance plan or company.

Is a family floater health insurance plan better than individual health plans for each member?

A family floater health insurance plan is an affordable option since it covers the medical expenses of your family members under a single premium.

Whereas, opting for individual health plans for each member of your family can be costly since you will pay multiple premiums.

For how long will my children be in the family floater health insurance plan?

Though it varies among companies, most insurance providers allow children in the family floater health insurance plan up to 25 years of age. If they start earning or get married before 25 years, they would no longer be eligible for the plan.

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