India Family Floater Travel insurance

This is most prevalent in Health Policies, although a few insurers offer this benefit under Travel Insurance. A floater policy is one that is issued with a single sum insured covering number of individuals of a family. The cover can be used by any member of the family any number of times during the policy period. If a person wants a health/travel insurance for himself, his spouse & their children, the Family Floater plan is ideal and offers insurance coverage to the entire family under one premium payment.

Let’s take an example wherein the person insures himself, his spouse & the two dependent children with the individual insurance plans with a sum insured of ₹ 1 lac each, he ends up paying an average premium of ₹X for each family member, which amounts of ₹4X. If the person opted for the family floater plan with the sum insured of ₹ 3 lacs, the total premium would ideally be less than the separate premium payments in individual health insurance plans, ie less than ₹4X. Moreover the individual plan has coverage of only ₹ 1 lac for each member as against ₹ 3 lacs in case of the Floater plan( in case the medical treatment exceed ₹1 lac). This ₹ 3 lacs is available for each of the family members individually as well as collectively.

It is recommended that as a general rule, at younger ages of all family members, opting for a floater cover is ideal. As the members grow older, they should go for an individual cover. But ultimately buying an individual cover or a floater cover is an individual’s preference.