What's the premium difference between family floater and individual policies for a young family?
Scenario
Family: husband 35, wife 33, two children (8 and 5). Comparing ₹15L family floater vs four individual policies (₹10L for each adult, ₹5L for each child)
Inputs
- Wife age
- 33
- Child1 age
- 8
- Child2 age
- 5
- Husband age
- 35
- Floater sum INR
- 15,00,000
- Individual adult sum INR
- 10,00,000
- Individual child sum INR
- 5,00,000
Calculation
- 1.
Family floater ₹15L premium (age-banded by 35)
market rate → ₹25,000
- 2.
Individual policy: husband 35, ₹10L cover
market rate → ₹16,000
- 3.
Individual policy: wife 33, ₹10L cover
market rate → ₹14,000
- 4.
Individual policy: child 8, ₹5L cover
market rate → ₹6,000
- 5.
Individual policy: child 5, ₹5L cover
market rate → ₹6,000
- 6.
Total individual policies premium
sum → ₹42,000
- 7.
Annual savings from floater structure
₹42K − ₹25K → ₹17,000
Conclusion
Family floater saves ₹17,000/year for similar (but shared) coverage. Over 25 years of continuous coverage, this compounds to ~₹4.25 lakh of premium savings — meaningful but small relative to a single ₹15L+ medical event.
Tradeoffs
Floater structure has shared-cover risk: a single ₹14L claim depletes the cover for the rest of the family for the year. The ₹17K annual savings is the cost of accepting that risk. For families with healthy adults under 45, the math favours floater. For older adults, the risk profile flips and individual policies become structurally more robust.