A family floater gives one shared sum insured to all covered members. An individual plan gives each person their own separate cover. The right choice depends on the age mix of your family and the probability of multiple claims in the same year. Here's the complete breakdown.
How Family Floaters Work
Under a ₹10L family floater, any member can claim up to ₹10L — but the total across all members combined cannot exceed ₹10L in a policy year. Premium is calculated on the oldest member's age. A family of four (35/32/8/5 years) might pay ₹18,000–₹22,000/year for ₹10L floater cover. The same four people with individual ₹5L plans might cost ₹28,000–₹35,000/year.
When Family Floater Wins
Family floater makes sense when: (1) All members are under 45 with no chronic conditions. (2) The family size is 2–3 people. (3) You want the convenience of a single policy and single renewal. The premium saving is real — 25–40% compared to equivalent individual covers for young families.
When Individual Plans Win
Individual plans are better when: (1) Any family member is above 50 — their premium loading on a floater is severe. (2) A family member has a chronic condition (diabetes, hypertension) that makes claims likely. (3) You have more than 4 family members — the probability of multiple claims exhausting the floater rises sharply. (4) You want to include parents — always give parents separate individual policies.
The Premium vs Risk Calculation
For a young couple (30/28) with two children under 10, a ₹15L floater at ~₹14,000/year likely makes more financial sense than four individual plans at ₹22,000+/year. The risk of all four simultaneously needing hospitalisation beyond ₹15L is low. But add a 58-year-old parent and the floater premium jumps to ₹32,000+/year — at which point separate individual plans for the parents become cheaper and safer.