When obtaining a health insurance policy, you should ideally choose between family health insurance plans and individual health insurance plans. The primary distinction between the two is that all family members are insured under one arrangement in a family floater health insurance plan. This implies that both the premium and the total sum insured are shared among all family members. Whereas an individual health insurance plan is devoted to one individual, particularly wherein the health insurance premium and total sum insured are shared.
- Individual health insurance is a type of health insurance plan in which just one person is covered in each arrangement. This means that the health insurance premium and complete coverage are dedicated to one individual only and cannot be shared. A family health insurance plans, on the other hand, is a type of health insurance plan in which you and your family members share a single policy. This means that everyone would share their health insurance premium and total protection in the plan.
- Individual health insurance is strongly advised for larger families or elderly guardians since a family floater may not be sufficient. A family floater health insurance policy would be ideal for a young couple or a small household.
- The only burden of Individual Health Insurance is that it will cover them during one policy year. Furthermore, even if they haven’t guaranteed during the year, they can benefit from a No Claim Bonus. One of the primary drawbacks of a family floater plan is that the amount protected may not be adequate for all family members.
- Individual health insurance only covers the only person covered by this arrangement. For example, if you take a 25 lakh INR arrangement, you will have 25 lakh INR to benefit from for the duration of the insurance. A family floater health insurance plan, on the other hand, covers everyone in the family who is covered by the plan. For example, if your arrangement is 50 lakhs INR, the entire family should split this money for the duration of the policy.
- The most important advantage of an individual health insurance plan is that the coverage is substantially more extensive because each individual has their aggregate safeguarded, as opposed to a family floater where the total safeguarded is split among everyone insured in the policy. This is especially beneficial for elderly guardians. The most significant advantage of a family floater plan is that the health insurance premium is reasonable since it is a one-time cost for all family members.
In addition to the above five key differences between individual health insurance and floater health insurance, there are a few more points worth considering:
- Buy different policies for every member of your family. You must keep up with each one separately, read and grasp the agreements for each one, remember various due dates for their premiums, and then work out the combined premium total for all of the policies to keep track of your expenditures. However, if you acquire a floater health insurance coverage, your entire family might be protected under a single policy. It relieves you of the burden of keeping track of an excessive number of policies.
- When a child covered by a floater health insurance policy reaches a set age – which varies from policy to policy – they are considered as adults. They must be removed from the floater health insurance plan for the arrangement to continue. Overall, in addition to the floater health insurance policy, you will need to acquire a separate health insurance policy for your child.
- The premium amount for floater health insurance is not fixed and is determined by the age of the most aged member covered by the policy. So whether you should acquire floater insurance or an individual health plan should not be determined by the age gap between the most seasoned individual covered by the policy and the other individuals in it. As a result, if you are single and your family already has health insurance, it is a brilliant idea to acquire individual health insurance coverage.
- Family health insurance plans are the biggest boon for families that don’t have too many members and are often comprised of young adults. This is a crucial difference compared to individual health insurance plans; families don’t need to pay heavy premiums for every individual. Instead, they can simply opt for a floater policy and get healthcare assistance only when otherwise fit, and healthy individuals are required.
Both floater health insurance plans and individual health insurance plans are acceptable choices; however, which one to pick relies upon your conditions. The right plan targets covering all family individuals and getting the most significant advantages of both the policies. Do your exploration on both and zero down which one is best for yourself and your family.