Which One Should You Choose: Individual or Family Floater Health Insurance Plan

The reasons for buying a health insurance plan are indeed many in number hence ignoring a health insurance policy is never an act of a wise person. When we shop around to pick the right insurance for ourselves and our family, we are often confused in opting the right product. We can buy an individual insurance plan for each of the family member or we can opt for an insurance plan which covers all the members of the family. The health insurance policies come in two different forms: Individual and Family Floater Health Insurance Plan.

 

 Difference Between Individual or Family Floater Health Insurance Plan

Before we proceed further, let us understand the difference between individual and family floater plans. An individual health insurance policy is issued in the name of one person only. Hence the policy premium depends on the age and health condition of the concerned person. If you want health coverage for all the members of your family, you are to buy separate policies for each member. Hence according to their age and health condition, different amounts of policy premiums are to be paid. Each of the members of the family will have a dedicated sum assured under the different policies.

 

In case of a family floater policy, all the family members of the family will be covered by a single policy. A single sum assured will be shared by all members of the family.  For example, let’s assume the sum assured is Rs.5 lakhs which have to be shared by 4 members of the family. If any of the members of the family incur a hospital bill amount is Rs 25,000, the insurer will pay the amount. After the payment, the sum assured will come down to Rs.4.25 lakhs which can be used for any of the members of the family during the coverage period. Most of the time a floater health insurance covers the prime insured, spouse and the children, while some other insurers may provide coverage to the extended family too.

How to Find the Best Health Insurance Plans

Both the health insurance plans mentioned here comes with some advantages and some disadvantages. Here we are focusing on some of the parameters depending on which one can find the best insurance plan for them.

 

The Cost of the Policy

A family floater health works best for you if your family is a young and the age gap is not so high between the members. If the age gap is less between the spouses and the children (if more than one) then a family floater health will be a cheaper option.

The Better Coverage

Though a family floater health insurance is a less expensive policy than individual health insurance, the coverage is always better here. If the sum assured is Rs. 5 lakhs for a floater health insurance and any of the members gets any serious health issue which needs more money for treatment, the chances of exhausting sum assured is very less.

 

The Risk Factor

As it is mentioned that the same sum assured amount can be partially or entirely used by any of the members, it may happen that no coverage left for other members. When a family claims for insurance amount, the cover reduces. If it happens that in the same year two or more members of the same family needs medical assistance, the floater health insurance coverage may not be sufficient.

Renewability

Most of the insurance policies of present-day comes with lifelong renewability. However, if you opt for a floater health insurance, you may not enjoy this advantage. A family health insurance terminates after the senior most member of the family reaches a certain age like 60 or 65. After the age of 65, buying an individual health insurance policy will be quite expensive. So, in this regard, an individual health insurance plan stands better than a family floater health insurance.

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Conclusion

Both the health insurance plans have some pros and some cons. It is the circumstances of the policy buyer which makes any one of both worthy of opting. A family floater health insurance is cheaper but the coverage is limited.  On the other hand, individual health insurance may be a costlier one but give you 360-degree protection. A family floater health insurance is beneficial only if your family is a young one and the age gap is not so high. In such scenarios, you can make the optimum use of the policy. If the scenarios are opposite then an Individual Policy would prove a better choice as it provides customized coverage.

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