Family health insurance provides unique floater benefit. This means that each member in the family is covered upto the entire sum insured of the policy. For e.g., Mr. X, his wife and daughter are covered for Rs. 1 lac each, under a regular individual health policies paying three different premium (for each policy). During medical emergency, say, the surgery and hospitalization bill of his wife amounts to Rs. 1.5 lac, their regular health policy would cover only Rs 1 lacs while Mr. X would have to pay Rs. 50,000 from his pocket. However, in a family health insurance, the cover of Rs. 3 lacs would be shared among the entire family. Thus providing each member a cover of Rs. 3 lacs. Mr. X would thus have the entire Rs. 1.5 lacs medical expenses covered for his wife.

If you go for regular health insurance for your family, you have to look after 3-4 policies. Whereas with family health care insurance, you maintain just one policy that takes care of the entire family.