Differences between a Family Health Insurance Plan and a Family Floater Policy

Imagine your family is having dinner at a popular restaurant, and everyone seems to have a good time. Then suddenly, your father feels a sharp pain in his chest and is rushed to the hospital, where it turns out to be a heart attack. That’s how quickly your family’s emotional, mental, and financial well-being can change. Well, that’s why having your loved ones protected by health insurance is important. But if you’re wondering which one to buy, let’s discuss the different features of two family-specific plans — the Family Health Insurance Plan and the Family Floater Policy.

What is a Family Health Insurance Plan?

A family health insurance plan covers all household members under one policy with a single premium. The sum insured is fixed and shared among all the members. You can include your spouse, children, parents, and parents-in-law in the plan. Family health insurance is cost-effective because you don’t have to pay premiums separately for each insured member. All the covered members can access quality healthcare services and are protected during unforeseen medical situations. Family health insurance covers medical expenses, including hospitalisation, pre- and post-hospitalisation, daycare procedures, domiciliary treatments, organ donor expenses, etc. Choosing the sum insured wisely is important, considering the number of members included in the plan.

Under Section 80D of the ITA, you can claim a tax deduction on the premiums of family health insurance plans.

What is a Family Floater Plan?

This plan, on the other hand, provides coverage only to immediate family members like spouses and children. The sum insured can be utilised only by the immediate family members.

You can also avail of tax benefits under Section 80D of the Income Tax Act for premiums paid for such plans.

Differences between Family Health Insurance & Family Floater

Both plans are meant to cover the entire family under a single plan, but there are some differences also, such as:

Parameters	Family Health Insurance	Family Floater Insurance
Meaning	The plan covers all family members, including spouses, children, parents, and parents-in-law	Covers only immediate family members like spouses and children
Coverage	All family members	Immediate family members
Ideal for	Bigger families	Couples or nuclear families
Coverage amount	You can increase the coverage amount with the addition of new members	The coverage amount cannot be increased even if you add new members
Premium	Increases with an increase in coverage amount	Remains fixed as the coverage amount cannot be enhanced

Conclusion

Family health insurance and family floater plans are the best ways to cover the family’s medical expenses during emergencies or planned treatments. Healthcare plans are meant to provide financial security, so make sure the sum insured is adequate for all family members. Before buying the best health insurance plan, compare the plans available and choose the one that meets your preferences and provides maximum coverage at an affordable cost.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.