Is a Family Floater Plan Advisable for Senior Citizens?


One of the biggest dilemmas faced by health insurance buyers is whether to opt for an individual health plan or a family floater plan. While many people opt for an individual health insurance scheme, a family floater plan entitles the family members to a wider coverage.

However, what if you want to cover your elder parents or in-laws under the family floater? Would it still be beneficial?

About Family Floater Plans

Family floater insurance plan is the most popular health insurance coverage that covers the entire family at the cost of a single premium amount. It reduces the financial onus and keeps your whole family safe.

It works under the premise that all the members of a family will not fall sick at the same time and if anyone falls sick at a given time, then they can avail coverage up to the sum insured amount.

When you choose a family floater plan that involves a much older family member aged above 60 years, there are higher chances that are a large chunk of the sum insured would be used up by this member. In such cases, the family floater plan might not be beneficial.

Also, a family floater plan with older family members will fetch a higher premium rate, owing to the greater risk of hospitalization and so, will not yield significant savings for you.

Family Floater Plans and Senior Citizens

Family floater plans work the best with nuclear families and younger families since the premium is linked to the age of the eldest member of the household. It is recommended that the oldest member of the family should be not more than 45 years old to unleash the full benefits of a family floater plan.

For example, a Rs.3 Lakhs family floater plan for a family of 4 where the eldest member is 45 years old, would cost close to Rs. 10,000. But, if you add 65 and 60-year-old senior citizen parents, then the premium surges up to Rs. 50,000.

More so, there are high chances that when elder members are hospitalized, they consume more of the sum insured amount. In the end, your family is left with lower coverage, and you are exposed to greater financial liabilities of paying out of your pocket.

Go for Individual Health Plans for Senior Citizens

Take a standalone health policy for your aged parents or in-laws and cover your family members under a family floater plan. This option will work the best and yield significant savings in the long-run.

  • Guaranteed Coverage Amount for Parents and Family
  • Focused individual protection for aged Senior Citizens
  • Increased Tax Benefits of opting two policies
  • Steer clear of over-costly premiums
  • Minimize your total cost
  • Save more in the long-run

Since senior citizens are subject to higher premiums due to the risk factor, it is wise to opt for a dedicated health plan for them. You no longer need to worry about increased premium costs. Opting for a combination of a family floater for the immediate family members and an individual health plan for the elder parents will minimize your total cost.