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What Is Floater Cover In Health Insurance

Published On Jun 24, 2022

In India, health insurance policies are of two types, individual health insurance and family health insurance. Individual health insurance plans, as the name suggests, offer protection only to a single person. You can buy one for yourself or for your spouse. On other hand, a family policy covers the full family under a single-family floater plan, which means you need not purchase multiple insurance policies for your family members.

What Is Floater Cover In Health Insurance

What Is A Family Floater Health Insurance Policy?

A family floater health insurance plan is a type of health insurance under which all the family members can be covered by paying only one premium. If there are multiple claims at the same time, the sum assured will be split amongst all family members. This policy is beneficial if you have more than two members of your family. The family floater health insurance policy is cost-effective as you get cover for all family members with a single premium.

What Are The Advantages Of Family Health Insurance?

Should you get a family floater plan or an individual plan for each family member – caught in two minds? Well, the choice ultimately boils down to your personal needs & preferences. However, family floater plans have several advantages over an individual health insurance policy. Some of these benefits include:

Easier to manage

One of the best parts about a family health insurance policy is that it saves the hassle of maintaining multiple policies. It covers your entire family under one policy including the extended family and your in-laws.

More affordable

A family floater health insurance policy is a lot more cost-effective than an individual policy. These plans usually offer a large sum insured at a much lower premium as compared to individual health insurance plans.

Higher sum insured

Sum insured in a family floater plan is set higher to cover for the entire family. This will ensure that if two people fall ill at the same time, there won't be a shortage of funds. This is one of the best benefits of family health insurance plans. 

Reinstatement value

In case the sum assured gets exhausted while treating someone, a few insurers offer 100% restoration of the sum insured. This ensures that you still have coverage despite the fact that the sum insured has already been fully utilized.

Better tax benefits

The family floater plan also gives you tax benefits under Section 80D of the Income Tax Act. You can avail deductions up to Rs. 75,000 on your annual income if you include your senior citizen parent or in-laws in your family health insurance plan.


A family floater health insurance policy is ideal for people who are married with children. The policy also covers senior citizens and extended family members, allowing people to include their parents and in-laws in the policy.

Also Read: Importance of Child Health Insurance Policies

LIC's Health Insurance Plans


This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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