What is a floater policy? How is it beneficial to take it?
In case of a floater policy, all members of the family are covered under one single policy. A single premium is payable for the entire family and the amount of cover (Limit) “floats” over the entire family. This means that it offers you the flexibility in terms of the cover available for each member of the family during hospitalisation. The limit can be used by any member of the family, and for any number of times. For eg. If you take a floater policy of 5 lakhs for your family, there is no fixed limit of how much of this amount is used for a single-family member. The claim amount during the year is restricted to Rs. 5 lakhs for all family members put together. If you take a normal group insurance policy in place of a floater, you have to define fixed amounts towards each family member and any unused amounts from one family member cannot be transferred to another member. Hence it is restrictive.
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