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Difference between Corporate Medical Insurance and Family-floater Insurance

Team AckoNov 19, 2025

Quick summary: Corporate Medical Insurance is provided by your employer and covers you and your dependents as long as you’re with the company. On the other hand, a Family Floater Health Insurance plan is one you buy yourself to cover your entire family under a single policy. The main difference is control, your employer manages the corporate cover, while a family floater plan gives you the freedom to choose the coverage and continue it for years, no matter where you work.

Corporate Medical Insurance provides coverage to the employees (and their dependent members). On the other hand, a Family floater plan provides coverage to a family. In both cases, the sum insured is equally divided among insured group members and so are the benefits. However, there are a few differences between Corporate medical insurance and Family-floater plans. This article sheds light on the key differences between these two widely popular health plans.

Contents

What are Family Floater Plans in Health Insurance?
What are Corporate (Group) Health Insurance?
Corporate medical insurance vs. Family-floater health insurance: Which Is Better for You?
What are the Benefits of Combining Employer Coverage with a Family Floater Plan?
- Takeaway
Frequently Asked Questions (FAQs)
Secure Your Future with Term Life Insurance

What are Family Floater Plans in Health Insurance?

A Family-floater health insurance policy is essentially a policy that extends coverage for the entire family. This can include your spouse, children, and your parents. In most cases, it contains all the benefits of a standard insurance policy. You can also customise a family floater plan as per the needs of your family member through add-ons. Family health insurance plans are more affordable when compared to buying health insurance separately for each family member.

Example: Say a family of four members, living in a metro city bought a family floater health plan with a sum insured of ₹10 lakhs. This sum insured can be used by all insured members. If the spouse uses ₹4 lakh for a surgery, the remaining ₹6 lakh will be available for other family members.

What are Corporate (Group) Health Insurance?

If you are employed, your employer may offer you a group health insurance policy. This policy will cover you, your spouse, and your children. Some may even include parents. Some employers may offer top-ups and add-ons, which can enhance coverage at an additional premium. It will be deducted from your salary. Employer coverage will last till you are employed with the company. It cannot be converted into a family floater plan or an individual health insurance plan when you are leaving your job.

Example: If your employer offers a Corporate plan of ₹5 lakhs then this sum insured can be used by all covered family members. If one member uses ₹2 lakhs for medical treatment then others still have access to ₹3 lakhs during the policy years.

Corporate medical insurance vs. Family-floater health insurance: Which Is Better for You?

Take a look at the following table to understand the differences between Corporate and Family-floater health insurance plans.

Parameter	Corporate medical plan	Family-floater plan
Meaning	A corporate health insurance plan covers the employees (and even their dependents) of a certain organisation.	A family-floater plan covers members of the same family.
Sum insured	Limited sum insured (mostly up to ₹5lakhs )with blanket coverage for family members.	You can choose a high sum insured (₹25 lakhs to ₹1cr) as per your family’s healthcare needs.
Who is covered?	Employees of a company (each policy covers the employee and their dependents).	Immediate family members are covered. Some Family-floater plans can also include in-laws.
Premium	The cost of this policy is borne by the employer for the basic plan. The employee may have to pitch in for additional coverages.	The full cost of the policy is paid by one family member.
Tax implications	The employee can only claim tax if he/she has paid for corporate health insurance from their pocket.	The insured person who paid the premium can avail of a tax benefit under Section 80D of the IT Act.
Eligibility	An employee will be eligible until associated with the organisation.	Any person above the age of 18 years can buy a Family-floater health insurance plan.
Exit criteria	Retirement, termination, or leaving the job are the exit criteria for opting out of a Corporate health insurance policy.	Reaching the exit age (as per the terms of the policy), failing to renew the policy, or death are the exit criteria for opting out of a Family-floater health insurance plan.
Claim settlement	Through a Third-party Administrator (TPA) appointed by the insurer.	Either via the TPA or by directly contacting the insurance company.
Pros	1. The employers pay for the base policy 2. Your claims are processed on a priority	1. One health insurance plan is easier to manage than multiple policies. 2. Separate health insurance cover for parents is not required, as they are a member of a Family-floater plan.
Cons	1. You don’t have a say in the type of coverage you get. 2. The plan will not be active when you leave the job or get retired. Some companies allow coverage up to 60 days after the last day of work.	1. The sum insured is used by multiple members and can easily get exhausted if more members get sick. 2. Siblings of the person who is a main member of the plan may not be covered if he/she is married.

Benefits of ACKO group health insurance policy

ACKO's Corporate plan offers extensive health insurance coverages, no-stress claims, and wellness benefits. We are a digital-first insurance company that offers comprehensive group medical coverage and ensures a hassle-free experience for both employees and the employer.

Here are a few benefits of ACKO's Corporate plan. Raise a claim without any physical documentation.
Visit any medical facility from ACKO's wide network (11500+ hospitals) across the country to avail of cashless claims.
Use services like teleconsultations, emotional assistance, Outpatient Department (OPD) treatment, and more through the ACKO app.
If allowed by your employer, you and your family will get health insurance coverage from ACKO and access to the above benefits plus more. You don’t have to pay a premium for the base plan. Simply pay for additional coverage that might seem necessary to you.

What are the Benefits of Combining Employer Coverage with a Family Floater Plan?

Having both employer coverage and a family floater health plan can offer an incredible level of protection for the entire family. They can also be combined as needed. Here are some of the benefits of having these two policies.

Enhanced coverage: The coverage offered by group insurance can be basic. Combining it with a family floater health plan can provide enhanced coverage for many health conditions. For those with pre-existing conditions and on a new family floater plan that has a waiting period, employer coverage can come in handy.
Financial security: Typically, group insurance may come with a smaller sum insured. So it may not cover all your hospitalisation expenses. Hence, having a family floater plan to cover the remaining expenses as needed will offer financial security.
Pro tip: In case of hospitalisation, use your group health insurance policy first. If the bill goes beyond the coverage, you can then use your family health insurance plan.
Continuous coverage: When you leave your job, or retire, the insurance coverage given by your employer ceases to exist. And remaining without health insurance between jobs is a big no-no in this day and age. A health insurance plan for family will cover your insured members so that you can look out for the next opportunity or retire without worrying about the finances.

Takeaway

A medical emergency is highly unpredictable, and you must create a financial backup to fight it better. This will help you focus on recovery rather than worrying about finances and the quality of treatment.

One must create a strong health insurance portfolio with different types of mediclaim plans. Thus, consider opting in for both Corporate as well as Family-floater coverage as this will increase your financial safety net against medical contingencies as Corporate plans cannot offer coverage when you quit the company. Additionally, buying a Family-floater plan is logical from a financial standpoint as your employer will bear the cost of a basic Corporate policy.

Frequently Asked Questions (FAQs)

Here are a few common questions related to Corporate and Family health plan. Feel free to contact us through email if there are more queries. Send your question to [email protected] and we will get back as soon as possible.

What is meant by the word ‘floater’ in Family-floater health insurance?

The word floater refers to the flexible benefit that is shared by the insured members of the plan. The sum insured and coverages are not fixed for a particular family member, and thus it is a floater health plan.

I have an Individual Health insurance policy. Can I convert it to a Corporate plan?

Usually, this is not possible as there might be different health insurance companies involved, and a Corporate plan is paid for by the employer. Also, it is not advised to be solely covered under one health insurance plan if you are looking for comprehensive coverage.

Can my claim against the Corporate policy get rejected?

Yes, there are multiple reasons why your Corporate claim can get rejected. Here are a few reasons.

You did not disclose the correct information.
You made a claim against an event not covered under your health plan.
The claim process was not correctly followed.

Thus, be sure to disclose all the correct information about your health history. Reading the terms and conditions of the policy will help you understand the plan better. With this, following the claim process correctly will enable you to get the claim amount faster.

Yes, ACKO provides GMC for employees of different companies. Kindly contact ACKO for more details.

Yes, ACKO provides Family health insurance plan with coverage for all members including self, spouse, up to four dependent children, parents, and also parents in-law. ACKO has one of the highest claim settlement ratios among top insurance companies and a wide (11,500+ hospitals) network of hospitals.

Contact the group insurance provider first. If your bill amount exceeds the coverage provided, you can then get in touch with your family insurance provider to claim the rest of the amount.

It’s recommended that you do so, but it is not mandatory. This can be helpful in a scenario where you need to use both to settle a bill.

Secure Your Future with Term Life Insurance

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Whether securing your family's future or gaining tax benefits, life insurance provides a robust means of managing both. Remember, a reliable life insurance calculator can help you find the right coverage and premiums that are well-aligned with your financial goals and budget.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet; and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content and before making any insurance-related decisions.