Non Floater Policy Meaning | Understand Individual Health Insurance
What is a Non Floater Policy?
A non floater policy is a type of health insurance plan where each insured member is given a separate sum insured. Unlike a floater policy, the coverage is not shared among multiple people. Instead, each individual has their own dedicated coverage limit, which ensures full protection without the risk of another family member exhausting the benefits.
Understanding the Basics
Definition of a Non Floater Policy
A non floater policy refers to an individual health insurance policy where the sum insured is fixed for one person. If there are multiple members in a family, each one gets their own policy with a separate sum insured.
How it Works
Let’s say a family of three buys non floater policies. Each member—father, mother, and child—gets a separate cover of ₹5 lakhs. If the father uses his entire ₹5 lakh cover, the mother and child still retain their full ₹5 lakh coverage.
Who Should Consider It
This type of policy is ideal for:
Older individuals
People with existing health conditions
Families that want to avoid the risk of coverage exhaustion
Key Features of a Non Floater Policy
Individual Sum Insured
Each member has a dedicated sum insured which is not affected by claims made by others.
Fixed Coverage for Each Member
Even if one person claims their full insurance amount, others still have their coverage untouched.
No Sharing of Benefits
Every insured person can use their full benefit without having to worry about someone else’s medical expenses reducing their protection.
Benefits of Choosing a Non Floater Policy
Tailored Coverage
You can opt for different sum insured amounts based on the health conditions of each family member.
Better for Older Individuals
Older adults often require more medical attention. A non floater policy ensures their full coverage is reserved just for them.
No Risk of Coverage Exhaustion
Since each person’s policy is independent, there's no worry about another member using up the sum insured.
Non Floater vs Floater Policy
What is a Floater Policy?
A floater policy allows the entire family to share one sum insured. For instance, a ₹10 lakh family floater can be used by anyone in the family.
Key Differences
Pros and Cons of Both
Non Floater Pros: Dedicated coverage, ideal for high-risk individuals
Non Floater Cons: Higher total premiums
Floater Pros: Economical, good for younger and healthy families
Floater Cons: Risk of exhausting coverage if one member falls seriously ill
Real-Life Example of a Non Floater Policy
Suppose a family of three—father aged 65, mother aged 60, and son aged 30—opts for a non floater plan. Each gets ₹5 lakh coverage. If the father is hospitalized and uses the full amount, the mother and son still retain their ₹5 lakh cover each, providing peace of mind.
When Should You Choose a Non Floater Policy?
Age-Based Decisions
Older adults are more likely to require hospitalization and can benefit from having their own dedicated policy.
Health Conditions to Consider
If a family member has chronic diseases or a history of health complications, having separate insurance helps.
Family Size and Structure
Small families or families with elderly members are often better off with non floater policies.
Limitations of Non Floater Policies
Higher premiums per person
Multiple policy documents to manage
Renewal reminders needed for each individual plan
How to Buy a Non Floater Policy
Choosing the Right Insurer
Look for:
High claim settlement ratio
Wide hospital network
Transparent terms and conditions
What Documents Are Needed?
Typically, you’ll need:
ID proof
Address proof
Age proof
Medical history (if applicable)
Passport-size photo
Online vs Offline Purchase
Online purchase is faster and often more economical. Offline purchase gives you the benefit of talking to an agent and getting personalized service.
Tax Benefits Under Section 80D
Under Section 80D of the Income Tax Act:
You can claim up to ₹25,000 for premiums paid (for individuals below 60)
Up to ₹50,000 for senior citizens
This applies individually for each non floater policy purchased.
Common Myths About Non Floater Policies
Myth: “It’s a waste if you don’t use it.”
Reality: It’s peace of mind, not a gamble.Myth: “Floater is always cheaper and better.”
Reality: Not if one member frequently needs treatment.Myth: “You can’t get individual cover for kids.”
Reality: Children above a certain age are eligible.
Final Thoughts
Choosing a non floater policy can be the right move when you want personalized and full protection for each family member. It's particularly beneficial for older people or those with specific health concerns. While it may cost a bit more, it eliminates the worry of coverage running out due to another member’s medical issues. It’s all about smart planning and peace of mind.
FAQs
1. Is a non floater policy more expensive?
Yes, because each member has a separate cover, the overall premium tends to be higher.
2. Can I convert a floater policy to a non floater one?
Yes, many insurers allow conversion during the renewal period.
3. Is it suitable for a single person?
Definitely. It offers full, individual protection, which is perfect for solo coverage.
4. What happens if I don’t use the coverage in a year?
Many insurers offer a no-claim bonus, which increases your sum insured in the following year.
5. Can children be covered under non floater policies?
Yes, depending on the insurer, children above a certain age can be individually covered.
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