Definition
Family Floater Health Policy
A family floater is a single health policy that covers the whole family under one shared sum insured.
A family floater health policy covers multiple family members — usually self, spouse and children, and sometimes parents — under a single shared sum insured for one premium. Any member can use the cover, up to the total sum insured, in a policy year.
It is generally cheaper than separate individual policies for younger families because the shared pool assumes not everyone will fall seriously ill in the same year. However, a single large claim can deplete the cover for everyone, which is where restoration and super top-up add-ons help.
The premium is influenced by the oldest member's age, so including elderly parents can raise the cost sharply — often it is better to insure ageing parents under a separate senior-citizen plan.
Related terms
- Top-up and Super Top-up Health InsuranceTop-up and super top-up plans provide extra health cover above a deductible at a low premium, supplementing a base policy.
- Restoration BenefitRestoration (or recharge) benefit automatically reinstates the health policy's sum insured once it is exhausted during a policy year, providing fresh cover for further claims.
- Health InsuranceHealth insurance covers medical and hospitalisation expenses in exchange for an annual premium.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.