Family floater is a relatively common concept in health insurance. As the name suggests, it’s a plan where the entire family of an individual — 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.

Any time, you can add an immediate family member (spouse or new-born).

Note that the insurance premium on a floater policy is calculated based on the age of the eldest family member. Therefore, the younger the family, the 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 comes down pro rata for the entire family for the remaining policy year.

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