How the Shared Sum Insured Works

The core concept of a family floater plan is the "floater" sum insured. Imagine it as a shared bank account for the family's health.

Example: A family of four (two adults and two children) buys a family floater policy with a sum insured of ₹10 lakh.

• Scenario 1: Single Claim – If one of the children has an accident and the hospital bill is ₹2 lakh, the family uses that amount from the shared ₹10 lakh pool. The remaining amount for the rest of the year is now ₹8 lakh, which can be used by any family member.
• Scenario 2: Multiple Claims – If the father later has a medical emergency that costs ₹6 lakh, he can use that amount from the remaining ₹8 lakh. The remaining sum insured is now ₹2 lakh for the rest of the policy year.
• Scenario 3: Depleted Coverage – If the sum insured is completely used up by one or more members, the policy will not cover any further medical expenses for anyone in the family until it is renewed. Some plans, however, offer a "refill" or "reinstatement" benefit that replenishes the sum insured after it's been used.

Who Can Be Covered?

Most family floater plans cover immediate family members, which typically includes:

• The policyholder
• Their spouse
• Their dependent children (usually up to a certain age, like 25)
• Many plans also allow you to include dependent parents and parents-in-law for an additional premium.

Things to Consider Before You Select a Family Floater Policy

• The Sum Insured Can Be Exhausted: The biggest risk is that a single large claim or multiple small claims from different family members could deplete the entire sum insured. If the sum insured is used up, the entire family is left without coverage until the policy is renewed.
• Not Ideal for Senior Citizens: Since the premium is based on the oldest member, adding an elderly parent (e.g., age 65) can make the policy significantly more expensive for the whole family. It's often recommended to purchase a separate senior citizen plan for them.
• Shared No-Claim Bonus: A no-claim bonus (a discount on your premium for a claim-free year) is also shared. If any member makes a claim, the entire family loses the no-claim bonus for that year.