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Family Floater Health Insurance Plans

The need for financial protection against medical emergencies is paramount as medical treatment costs are continuously on the rise. Separate health insurance coverage for every family member can burn a hole in your pocket. ...Read More

Explore the range Health Plans by HDFC Life to cover your medical expenses
With Health plans from HDFC Life you can opt for medical insurance at affordable rates

  • A Wide Network of More Than 10000 Hospitals

    10,000+ network hospital in India

  • Covers 18 Types of Heart Diseases

    Covers 18 types of heart diseases

  • Cover of Rs 10 Lakhs

    Cover of Rs.10 lakh for ₹ 5/Day1

  • No Medicals Required

    No Medicals Required

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Family Floater Health Insurance Plans

What is Family Floater Health Insurance?

Family Floater Health Insurance Plans
April 17, 2025

Table of Content

 

A family floater health insurance plan is a health insurance plan that covers close family members in a single plan. The fixed sum insured is shared among the family members. It is less cumbersome and cost-effective as you have to pay a single premium. The family members that can be included in the family health plan are parents, spouses, and children. 

For extended families, you can include in-laws and siblings who are financially dependent on you. The best family floater health insurance plan covers hospitalisation, pre and post-hospitalisation expenses, prescription medicine, day-care procedures, and ambulance services. You can also customise the plan according to the needs of the family members with add-ons like critical illness insurance, terminal illness insurance, etc.

How Does a Family Floater Policy Work?

If you have a family floater policy, you need not have an individual policy for yourself, separate health insurance for parents and other family members. All of them are covered under a single plan. Before purchasing floater health insurance, you should know how it works. 

For Instance, if you purchase medical insurance for families with a sum insured for Rs. 20 lakhs, the plan covers you, your parents, spouse, and children. If a family member is hospitalised and the treatment cost is Rs. 15 lakhs, the insurance company will settle the claim for Rs. 15 lakhs. The remaining Rs. 5 lakhs is available for the other family members. Wherever the treatment cost exceeds the sum insured, the service provider will reimburse up to the coverage available, and the policyholder has to bear the rest.

Benefits of a Family Floater Health Insurance Plan

The benefits of a family floater health insurance plan are:

  • Cashless Treatment Options

    • This extensive health insurance plan provides easy and immediate access to treatment. Upfront payment is not necessary to initiate the treatment. You have cashless treatment options at network hospitals. The insurance company coordinates with the hospital and manages all the treatment costs directly.

  • Cost-Effective Premiums

    • The family floater health insurance plan premium does not burden your budget as you pay a single premium to cover all the family members under a single policy. If you had to buy a separate plan for each member, the premium could take a toll on your pocket.

  • Add Family Members Anytime

    • The best family floater health insurance allows you to add new members to the family at any time. If you have family medical protection covering you and your parents and you intend to add your spouse to the same plan after marriage, you can do it easily.. It is better than buying an individual health plan for the new member.

  • Tax Benefits

    • If you have a family floater policy, the premium paid towards the plan is eligible for tax deduction under Section 80D of the Income Tax Act, 1961. The deils of the eligible deductions are given below:

Any mode other than cash shall be allowed as a deduction to pay premium on the family Floater Health Insurance Plans. Family means the spouse and dependent children of the assessee.

Family Floater Health Insurance Plans Coverage Type

Maximum Deduction for Self & Family Premium

Maximum Deduction for Parents’ Premium

Maximum Deduction Limit

Self and family below 60 years

Rs. 25000

Not Applicable

Rs. 25000

Self and family plus parents below 60 years

Rs. 25000

Rs. 25000

Rs. 50000

Self and family below 60 years and parents above 60 years

Rs. 25000

Rs. 50000

Rs. 75000

Self and family above 60 years and parents above 60 years

Rs. 50000

Rs. 50000

Rs. 1 lakh

Who should buy the Family Floater Policy?

A family floater policy may not work the same way for all families. It may be cost-effective for some families whereas the coverage may be inadequate for families with members with health conditions that need constant medical attention. Family health benefits with a comprehensive plan work well if all members are young and fit. It works out economically when compared to individual health insurance plans. 

In contrast, if the family is a combination of youngsters and senior citizens, the coverage will not suffice for all the members. The senior citizens may need frequent medical attention and exhaust the sum insured. In such cases, separate plans for senior citizens is suggested to make the best use of the benefits of health insurance.

Eligibility Requirements for Family Floater Health Insurance Plan

The eligibility criteria vary with the insurance provider. However, the general requirements to qualify for the family floater health insurance plans are:

  • The minimum age for the purchase date for adults is 18 years, and for babies, it is 90 days.
  • Adults above 65 years do not qualify for the plan.
  • Every member should have a PAN and address proof.
  • The policy terms contain the details of whom you can include in the family floater health insurance. Typically, you can add parents, parents-in-law, spouses, and dependent children.

How to Select the Best Family Floater Health Insurance Policy?

Consider the following to select the best health coverage for family members:

  • Understand Your Needs

    • Understanding what you expect from the insurance for dependents is the primary step. You should assess your needs and those of your family members accurately. Thereafter, you can research the various insurance plans available and shortlist the ones that suit your requirements. You should also decide whom you want to include in the family medical insurance package.  A separate policy for the elderly in the family is recommended as they may need recurring medical treatments. Also, you should consider pre-existing illnesses of the family members as they significantly impact the premium.

  • Choose the Right Coverage Amount

    • Healthcare coverage for family members is crucial to avoid financial stress during medical emergencies. While purchasing a family floater policy you should remember that the sum insured is shared by all the members. You should assess the health condition of each family member to evaluate the coverage required. Otherwise, soon the sum insured will be exhausted, and your out-of-pocket expenses will increase.

  • Claim Settlement Ratio

    • This is an important aspect to verify to avoid confusion during claim settlements in the future. The claim settlement ratio indicates the number of claims successfully settled out of the total claims received in a financial year. The higher the claim settlement ratio, the more credible the insurance company is. You should also check whether the claim settlement process is simple and less cumbersome.

  • Add-On Covers

    • Add-on* covers enhance the health protection for family members. Check for additional benefits offered in the plans. Some of the preferred benefits are critical illness riders wherein the insurer pays a predefined lump sum amount if any of the members are diagnosed with a critical illness like cancer, kidney failure, stroke etc., waiver of waiting period, personal accident cover, daily hospital cash, etc.

    Study your family medical history to understand which add-on works better for health insurance for dependents.

What is NOT Covered Under a Family Floater Plan?

The family floater health insurance generally does not cover the following:

  • Cosmetic procedures to change body or face contours.
  • Self-inflicted injuries.
  • Sexually transmitted diseases, except HIV-AIDS.
  • Health issues developed due to substance use, smoking, and alcohol consumption.
  • Claims filed for pre-existing illnesses during the waiting period.
  • Health issues as a result of unapproved treatments.
  • Dental Procedures.
  • Outpatient treatments.
  • Any other exclusions mentioned in the policy document.

Reasons to Buy Family Floater Plans Online

The reasons to buy family floater health insurance plans online are:

  • Convenience

    • Digital platforms have made it possible to buy insurance plans with a click of a button. Buying family floater health insurance online eliminates the need to visit an insurance company several times. You can purchase the plan at any time and anywhere in the comfort of your home. You can compare plans online and choose the one that suits your requirements.

    You can pay the premium and file claims online. Keep all the required documents ready for a seamless online purchase.

  • Instant Quotation

    • Compare the plans and shortlist the insurance companies. Visit the providers’ official websites of the providers. Fill in the application form and get an instant quotation. Review all the quotations and select the one that provides maximum coverage and benefits for an affordable premium.

  • Easy Renewals

    • Similar to online purchases, the facility for online renewal is available. Visit the insurance company’s website, provide the details of the existing policy documents and pay the premium displayed online for the policy renewal. It is that simple.

FAQs on Family Floater Health Insurance

Q. What is a family floater health insurance?

A family floater health insurance is a plan that covers all family members in a single policy. You can include parents, spouses, children, and parents-in-law under the same plan. This extensive family healthcare plan is more cost-effective when compared to individual plans.

Q. What are the disadvantages of the family floater Mediclaim policy?

The disadvantages of a family floater health insurance plan are:

  • The sum insured is shared by all family members. If the medical expenses of one family member are very high, the other members will be underinsured.
  • If one member consumes the entire insured sum, the other members will have no coverage for the entire policy year, subject to policy terms and conditions. This may again create a financial crisis during medical emergencies.
  • The premium is fixed according to the age of the eldest family member. In due course, the premium may be significantly high.
  • Coverage is available for spouses, children, parents, and parents-in-law. It does not cover extended family members such as grandparents, uncles, aunts, etc.
  • It is not suitable for family members with diverse health issues.

Q. Who can be covered in a Family Floater Plan?

The family floater health insurance plan covers spouses, parents, children, and parents-in-law.

Q. Can I add my parents to the plan?

Yes. You can add your parents to the family floater health insurance.

Q. Can I change family members during the policy period?

Yes. You can add or remove family members during the family floater policy period. You have to inform the insurer before the change and follow their procedures for the amendment such as submitting prescribed documents and premium adjustment, subject to policy terms and conditions.

Q. How can you calculate premiums for a family floater policy?

You can use the online family floater policy calculator. You have to input the sum insured, the number of family members, the age of the eldest family members, tenure, lifestyle habits, location, and health conditions.

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Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

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Author Profile Written By:
Vishal Subharwal Vishal Subharwal

Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.

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1. Tax benefits & exemptions are subject to conditions of the Income Tax Act, 1961 and its provisions. Tax Laws are subject to change from time to time. Customer is requested to seek tax advice from his Chartered Accountant or personal tax advisor with respect to his personal tax liabilities under the Income-tax law.

*Add-Ons / Riders are subject to payment of additional premium. 

 

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