INDIVIDUAL HEALTH POLICY OR FAMILY FLOATER PLAN WHICH ONE TO BUY

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;

Individual health insurance plan

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.

 

Family floater health insurance plan

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.

 

Difference between Individual health insurance plan and Family floater health insurance plan

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.”

 

FAQs – Frequently asked questions.

Q1. Do the family floater insurance plans cover medical expenses?

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.

 

Q2. In case the primary insured person covered under a family floater policy expires, is the reimbursement done?

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.

 

Q3. Does the family floater health insurance plan cover any family members?

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.

 

Q4. Is there any waiting period under the family floater health insurance plan for claims?

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.

Q5. Can I buy more than one family floater health insurance plan?

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.