What is Family Floater Health Insurance? - Features, benefits & coverage

3 min read Apr 23, 2024

A Family Floater Health Insurance Plan has become one of the necessities, today, when health related emergencies can occur. Given the rising costs of medicines, medical procedures and hospitalised-treatments, there is a crucial need to ensure adequate health coverage for your family at all times.

A Family Floater Health Insurance plan offers an all-in-one solution to shield the health of your entire family under a single policy.

Family Floater Health Insurance plans

Family Floater Health Insurance is a type of policy that provides coverage to the entire family of the insurer under a single sum insured. In individual Health Insurance plans, each member has a separate insurance policy, while a family floater plan covers all family members in one group, including the primary policyholder, children, spouse and parents.

Features of Family Floater Health Insurance

• Shared sum insured: Family floater plans operate on the principle of shared risk. Instead of allocating separate sums insured for each family member, the total sum insured is shared among all members covered under the policy.
• Single policy, multiple members: Family floater Health Insurance covers all family members under a single policy.
• Cost-effective premiums: Compared to individual Health Insurance policies for each family member, family floater plans often come with more affordable premiums.
• Flexibility in coverage: Family floater plans offer flexibility in coverage, allowing policyholders to include or a exclude family member's life events such as childbirth or when children reach adulthood and need to be covered separately.

Benefits of Family Floater Health Insurance

• Coverage for family members: Family floater plans generally cover the primary insured, their spouse, parents, and dependent children. Some plans may also extend coverage to custody holders.
• Cashless in-patient hospitalisation: Family floater plans offer the convenience of cashless hospitalisation, where the insured can get treatment at relevant hospitals without having to pay any upfront medical expenses.
• Hospital room rent: Family floater policies cover expenses related to room rent during hospitalisation, ensuring that the insured receives quality medical care without worrying about accommodation costs.
• Daycare treatments: Many modern medical procedures do not require overnight hospital stays. Family floater plans provide coverage for daycare treatments, including surgeries and therapies that require less than 24 hours of hospitalisation.
• Coverage for ambulance costs: In case of medical emergencies requiring the need for ambulance services, family floater plans cover the cost of ambulance transportation to the hospital which is under the policy

How does a family floater plan work?

Family Floater Health Insurance operates on the principle of shared risk. The sum insured is shared among all family members covered under this policy. In case of a claim, if one family member takes treatment from a portion of the sum insured, the remaining amount can still be utilised by other family members if needed.

Coverage of family floater plan

• Hospitalisation expenses such as room rent, ICU charges, doctor's fees and medicines
• Pre-and post-hospitalisation expenses, including diagnostic tests and follow-up consultations
• Daycare treatments for procedures that do not require overnight hospital stays
• Emergency ambulance services
• Coverage for specific illnesses (depending on the policy terms)

What do family floater plans not cover?

• Pre-existing diseases which have not been subject to insurance earlier
• Expenses related to non-allopathic treatments
• Cosmetic treatments
• Injuries or illnesses resulting from hazardous or illegal activities
• Treatment expenses incurred outside the policy's network of hospitals

Who should get a family floater plan?

This type of policy is beneficial for:

• Families with multiple members, including parents and children.
• Young families with children, as they provide cost-effective coverage for the entire family.
• Individuals looking for convenience in managing their Health Insurance needs under a single policy.

Tips to buy a family floater health plan

Before purchasing a Family Floater Health Insurance plan, consider the following factors:

• Sum insured: Select a sum insured that specifically covers the medical needs of your family members without being too high or too low.
• Network hospitals: Ensure that the policy provides access to a wide network of hospitals and healthcare providers to avail of cashless facilities conveniently.
• Claim settlement ratio: Check the insurer's claim settlement ratio to assess their track record of acquiring claims promptly and efficiently.
• Waiting period: Understand the waiting period for pre-existing diseases and other specific conditions to avoid any disruptions during claims.

Applying for family floater plans

Applying for a Family Floater Health Insurance plan online includes the following steps:

• Research and compare: Research the best insurance providers and compare their family floater plans based on coverage, premium and features.
• Select the right plan: Choose a plan that best suits your family's healthcare needs and budget.
• Fill out the application: Visit the insurer's website and fill out the application form with accurate details.
• Submit documents: Upload the necessary documents, like identity proof, address proof and medical records, if required.
• Make payment: Pay the premium of the policy online using secure payment gateways.
• Receive policy documents: Once the application is processed and approved, you will receive the policy documents via email or courier services.

Also Read: How to claim Health Insurance? - Steps & documentation

Conclusion

Family Floater Health Insurance plans offer a convenient and effective solution to safeguard all of your family's health and financial well-being under one roof. By understanding the features, benefits and considerations associated with these plans, you can make a wise and informed decision to get the best possible healthcare coverage for your near and dear ones.

Axis Bank offers a variety of Family Floater Health Insurance plans in partnership with Aditya Birla Health Insurance and Niva Bupa Health Insurance. You can check the website for more details and opt for the best plan that suits all your needs.

Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.

Disclaimer: Purchase of insurance product by Bank’s customer is purely voluntary and not linked to any other facility from the bank.