We have heard of different health plans like individual or family floater. How to decide which one to opt for? The best way to decide is first to understand the plan specifics, identify your requirement and finally match which plan suits you and your requirement the best. Let’s look at the features of these health plans in detail to get a better understanding;
An Individual health insurance plan is coverage for a single person, which means it does not cover any of your family members. It is a single-person plan with covers for all health benefits. This plan is ideal in case you are looking for a plan to protect your individual health needs or for your old-aged parents. It will be a separate plan to cover all health benefits. Such plans strengthen your financial upkeep, protects your health as well as offer tax benefits.
A family floater insurance is a health insurance plan that protects you and your family members under one plan. It means that the health insurance premium and the total sum insured will get shared amongst all the family members included in the plan. A family floater plan is a smart choice for reducing the financial burden and protecting overall family health.
The plan works simple. Say your family floater cover is five lakhs for a family of five members. In case of need or medical emergency, any one member can use the entire amount of five lakhs, or all five members can use whatever amounts they require as and when the need arises, staying within the sum insured of five lakhs. A family floater plan is ideal for couples and nuclear families.
When it comes to selecting which plan is better, the individual health insurance or family floater health insurance, it is a decision purely based on your need. Both the plans serve the fundamental object of providing health insurance coverage and financial assistance at the time of medical emergencies. However, the plans have diverse features and differ in nature; hence the decision to choose gets based on your requirement.
Let’s compare both the plans on different features to get a detailed grasp of the plans;
Feature |
Individual health insurance plan |
Family floater health insurance plan |
Includes |
Only one person can be covered in one plan. Both the health insurance premium and sum insured are for one person only |
You and your family members share one plan. Both the health insurance premium and sum insured would be shared amongst all family members in the plan |
Coverage |
Offers coverage to the single individual insured in the plan |
Offers coverage to all family members insured in the plan |
Benefit |
Best benefit is the coverage is a lot more extensive since individual has own sum insured |
Best benefit is the health insurance premium is cost effective, as it is a one-time premium for all family members insured |
Ideal for |
It is highly recommended for individual coverage need or those with senior parents |
It is best for young couples or small and nuclear families |
Added benefit |
Opt for relevant add-on under individual health insurance plan |
Opt for a higher sum insured to make sure that the total sum insured is sufficient for all family members in time of need |
Disadvantage |
One will have more than enough to cover in one policy year |
The sum insured may not be enough for all family members in the plan |
Age |
In case of individual health insurance plan, only own age is considered for setting the premium |
In case of family floater insurance plan, premiums are fixed on the basis the age of the oldest family member covered in the plan. |
Premium |
Individual health insurance plan has higher premiums in comparison to family floater insurance plan |
In family floater plan, you pay a single premium amount for a number of members. The per person premium, would be quite low as compared to individual health insurance plan |
Maturity |
Individual health insurance plans do not cover children |
Family floater insurance plan provide coverage for children as well |
Renewability |
For individual health insurance plan renewals are allowed only up to a certain age |
In case of family floater plans, if there is a elderly person involved the plan will be rendered useless for the rest of the family members, when the former crosses the maximum renewal age. |
No-claim Bonus |
The probability of getting a bonus is higher in individual health insurance plans |
The family floater insurance plans have chances of any member of the family to cancel this reward |
Thus, in summary, individual health policy or family floater plan - which one to buy is the one that suits your necessity the best. Usually, a family floater insurance plan is apt for young couples or nuclear families to benefit and cover maximum individuals. However, if a family is more prominent or has multiple senior members, investing in an individual health insurance plan would be more advisable.
“Disease, sickness, and old age touch every family. Tragedy doesn’t ask who you voted for. Health care is a basic human right.”
Yes, the family floater insurance plan covers all the medical expenses during sudden illness, surgeries, and accidents for all the family members covered in the plan.
Yes, if the primary insured dies post-hospitalization, the claimable health expenses would be reimbursed. If the primary insured is also the eldest member in the family, then for the succeeding years post the death of the primary family member insured, the premium would be calculated on the basis of the age of the next eldest member. For this to happen, the family should fill up the change of request form provided by the insurer. Please note that in case there were only two members covered under the policy and on the death of the primary person, then the family floater plan would be converted to an individual plan.
No. The family floater health insurance plan offers coverage to you, your spouse, dependent children and parents, and your other immediate or blood relatives and in-laws.
Yes, in the case of a family floater health insurance plan, there is a waiting period of 30 days before you can make any claims. However, in case of an accident, the waiting period is waived off, and you can file a claim without any waiting periods.
Yes, you can buy more than one family health insurance plan. Though, the insurance companies will settle the claims in rateable proportions at the time of claims.