What is a "family floater" policy?

A "family floater" policy is designed to cover multiple family members under a single insurance policy, providing a convenient and often cost-effective way to protect the entire family with one plan. This type of policy allows for comprehensive coverage while eliminating the need for individual policies for each family member, which can save both time and money. It typically covers the family unit for various types of incidents or claims up to a specified limit, and everyone insured under the policy can access the benefits outlined in the plan.

This structure inherently promotes a simplified administrative process for managing insurance, as families only need to maintain and renew one policy rather than multiple. Additionally, a family floater can offer greater flexibility in terms of benefit usage among its members, meaning that if one member requires more coverage, it can be utilized from the combined limit available in the policy.