The concept of family floater is common in health insurance. As the name suggests, a family floater plan is one where the entire family of an individual — with spouse and children — is covered. Many insurance companies today have provisions to cover dependent parents, siblings and parents-in-law too through a floater cover.
A family floater plan comes with a list of benefits and exclusions. It is easier to add your immediate family (spouse or new-borns) anytime. Some insurers offer discounts for purchasing floater covers. .
Note that, the insurance premium on a floater policy is calculated based on the age of the eldest member in a family. Therefore, younger the family, lower the premium outgo. On the downside, if one member of the family makes a claim against the floater cover in a policy year, the sum insured reduces by that much on the entire family for the remaining policy year. So, if any other family member makes a claim, the cover would be thinned out to that extent.