HomeHealth InsuranceFamily Health Insurance vs. Family Floater Plan: What to Buy

Family Health Insurance vs. Family Floater Plan: What to Buy

The primary concern for anyone is the well-being of their family. The earner of the family does everything to satisfy their family’s needs and keep them safe. You work restlessly behind the job to keep all dependents joyful. An intelligent individual prioritizes their family’s future, recognizing potential risks such as untimely death, severe disease, or unforeseen unemployment. Family health insurance vs. family floater plan allows individuals to easily maintain their lifestyle and standard of living. An insurance policy primarily covers every unpredicted medical expense and gives financial assistance to the insured as and when required.

Insurance agencies offer various policy options tailored to individual needs, allowing customers to purchase and customize their preferred policy. Insurance providers offer a premium calculator that simplifies work by providing accurate premiums based on individual choices. Some companies that give insurance plans are LIC, HDFC ERGO health Insurance, Royal Sundaram, Bharti AXA, Star Finance, etc. The market offers various insurance coverage options such as family health insurance, medical, car insurance, life insurance, and travel insurance. 

Also read: When Is The Right Time to Buy a Health Insurance Policy

What is Health Insurance?

Health insurance is a type of insurance policy that provides financial coverage for medical expenses incurred by an individual or a group. Health insurance is designed to protect individuals and families from high healthcare costs and ensure access to quality medical services.

The Health insurance plans, offered by private insurance companies or government-sponsored programs, vary in terms of coverage, cost, and benefits. The primary purpose of health insurance is to address the rising costs of medical care. By paying premiums, policyholders can access a wide range of healthcare services, including a doctor’s wide range of healthcare services. Healthcare services include doctor consultations, hospitalization, medication, surgeries, diagnostic tests, and preventive care. The coverage provided by health insurance plans can vary, from basic essential services to more comprehensive policies.

There are different types of health insurance plans, such as individual health insurance, family health insurance, and employer-sponsored group plans. Some government programs like Medicare and Medicaid are also available now. Health insurance policies come with various terms and conditions, including deductibles, co-payments, and maximums.

Family Health Insurance vs. Family Floater Plan

There are some differences between family health insurance vs. family floater plans. When choosing between family health insurance and a family floater plan, there are a few factors to consider.

Also read: What is the Cost of 10 Lakh Health Insurance Policy for a Family

1. Family Health Insurance

Family health insurance typically provides coverage for individual family members, meaning each member has their sum insured. This means that each family member can claim up to their limit, regardless of claims made by other family members.

Family health insurance is ideal when family members have different healthcare needs and may require different levels of coverage. It allows individuals to personalize their range based on their health conditions or preferences.

Family health insurance provides coverage for each insured member separately. The policy covers a specific amount for each member and can be claimed by that member. This means if one member exhausts their insurance limit; it will not impact the coverage of other members.

However, it is worth noting that family health insurance plans typically have higher premiums as each member is insured separately. Under section 80D of Income-tax, the maximum tax deduction is Rs.25000 in the finance year on health insurance premiums.

2. Family Floater Plan

On the other hand, a family floater plan offers a single sum insured that can be shared among all family members. The family floater plan is suitable for families with similar healthcare needs and no pre-existing conditions that necessitate higher coverage.

A family floater plan typically comes with a lower premium as compared to an individual health insurance plan. Family floater plan 96+*912268/, X also provides the convenience of a single policy. It makes it easier to manage and track claims for the entire family. This plan can result in a single member’s sum insured being exhausted, leaving other members uninsured for the remainder of the policy year.

When deciding which plan to choose, it’s important to consider your family’s specific requirements. Family health insurance plans may be more suitable for families with pre-existing conditions or those at risk of medical needs. It ensures that each member receives adequate coverage.

A family floater plan offers comprehensive coverage for a lower premium for families in good health seeking a cost-effective option. It’s also worth noting that there may be additional factors to consider like policy terms, network hospitals, and waiting periods. I’d recommend reviewing and comparing the policy details of different insurance providers to make an informed decision.

Ultimately, the choice between family health insurance and family floater plans depends upon the family’s specific healthcare needs, budget, and preferences. It’s important to evaluate coverage options, consider potential future health issues, and select a plan that aligns with the family’s requirements. Consulting with an insurance expert or broker can also help make an informed decision. Companies like Bharti AXA Health Insurance & HDFC ERGO Health Insurance will offer a list of services included in their policies.


Both family health insurance and family floater plan have their pros and cons. Family health insurance provides comprehensive and individualized coverage, while a family floater plan offers affordable coverage for the entire family. It ultimately depends on your family’s specific needs and preferences.

In conclusion, it is very important to assess your family’s medical history, anticipated medical expenses, budget, and lifestyle. This assessment determines which option is best for your family’s health coverage needs. Consider consulting an insurance professional who can guide you in making an informed decision.

Family Health Insurance vs. Family Floater Plan – FAQs

What’s the main difference between family health insurance and a family floater plan?

Ans. Family health insurance covers individual family members separately, with each person having their coverage limit and benefits. Family floater plan, on the other hand, provides a single sum insured that can be utilized by any family member.

Which one is more cost-effective, family health insurance, or a family floater plan?

Ans. A family floater plan is usually more cost-effective compared to individual health insurance policies for each family member. It offers wider coverage at a relatively lower cost.

Can I include family members with pre-existing conditions in a family floater plan?

Ans. Yes, you can include family members with pre-existing conditions in a family floater plan. However, keep in mind that their pre-existing conditions may have specific waiting periods and limitations on coverage.

Are there any advantages to having family health insurance over a family floater plan?

Ans. Family health insurance allows for more personalized coverage and flexibility to cater to individual medical requirements. It can be beneficial if family members have varying healthcare needs or pre-existing conditions that require specific coverage.

Is it possible to switch between family health insurance and a family floater plan?

Ans. Yes, it is generally possible to switch between family health insurance and a family floater plan. However, it’s important to carefully review the terms, conditions, and coverage options of both plans. Preferably consult with an insurance professional to ensure a smooth transition and uninterrupted coverage.

Remember, it’s essential to assess your family’s specific needs, budget, and healthcare requirements when choosing between family health insurance and a family floater plan.

Ajeet Sharma, the founder of Financegab and a well-known name in the field of financial blogging. Blogging since 2017, he has the expertise and excellent knowledge about personal finance. Financegab is all about personal finance which aims to create awareness among people about personal finance and help them to make smart, well-informed financial decisions.


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