A health insurance plan is the most popular and important insurance plan as it helps us to fight against health risks by keeping us financially healthy at the time of any medical emergency. It has remained no longer a choice but an essential part of living a healthy and peaceful life. No matter what age you are, you should opt for a suitable health insurance plan immediately. But before buying a health plan, it is necessary to know about the main two types of health insurance plans that the insurers usually offer, namely family floater and individual health insurance. These two types are distinct and it may affect you if you have chosen the wrong type. So, to help you out in this case, today we are going to talk about everything that you need to know about the family floater and individual health insurance plans.
Know About Family Floater Health Plan & Its Key Highlights
When you have a family to look after, or if you are planning to have a family, you should ideally go for the family floater plan as it offers coverage and benefits to the entire family members who are insured under the plan. this means that both the premiums and the total sum insured can be shared amongst all family members. In India, families often remain under financial stress, and for that, they often neglect the necessity of a health insurance plan. But in this case, a family floater plan can be suitable as it is budget-friendly.
For most insurers, this family means the self, spouse, dependent children, and dependent parent or in-laws. However, a few companies also offer coverage for extended families. Moreover, you can also include more members under the same plan by paying a little extra premium or opting for an add-on cover, if this facility is available with the insurer. A family floater plan is much more flexible when it comes to using the insurance coverage and benefits for a number of people in the family. It is most suitable for couples, and nuclear families.
The key highlights of the family floater health insurance plan are as follows:
- The benefits, facilities, and coverage of the plan can be shared amongst the insured family members.
- Up to a certain limit, the family members can be added to the policy for which you have to pay a single premium.
- The sum insured can also be shared in the face of any medical emergency.
- This type of plan is very cost-effective.
- Once you have bought a family floater policy, you do not have to think about the health of your family members as they are protected and secured by the policy.
- The plan is flexible and a smarter choice, both economically and health-wise.
What Are Individual Health Plans?
Contrary to a family floater plan, an individual health insurance plan, as the name suggests, offers coverage for a single individual. This type of plan does not provide coverage for the entire family, rather, it gives each of you a separate plan along with the benefits. This plan is best suitable for the people who have senior citizens in their family as they need special care, or if each member of the family needs varied health protection. An individual health insurance plan comes up with the tax exemption benefit that not only makes you financially sound but also takes care of your medical needs. In comparison to the family floater policy, this policy is a bit expensive, but it caters to the varied needs of the different individuals separately. It is a more personalized and customized plan as per the requirements of the insured person than a family floater plan.
Here are the key features of this plan:
- The coverage of this plan is a lot more extensive as every individual is getting a separate sum insured.
- This plan is designed to address the different needs of the individuals.
- This plan is most suitable for the bigger families which have family members from different age groups.
- A wide range of add-on covers or additional benefits is available with this policy.
Difference Between Family Floater & Individual Medical Insurance Plans
To buy a health insurance policy, it is important to have a comprehensive idea about these two types of plans. So, for better understanding, look at the difference between the two mentioned in the following table.
|Parameters||Family floater plan||Individual plan|
|Coverage||The coverage can be shared by all the insured family members.||The benefits and facilities that come with this plan, can only be used by a single individual, the insured person.|
|Sum insured||As the sum insured is shared by the family members, you need to look for a higher sum insured value to have enough protection at the time of a medical emergency.||You can opt for the required sum insured option as it will be used only by you.|
|Price||This plan is cost-effective||This type of health plan is a bit expensive.|
|Suitable for||It is suitable for the bigger families which have many family members belonging to different age groups.||It is ideal for couples, blooming families, and nuclear families.|
|Premiums||The premium value for this plan is lower and that can be shared by the family members.||It is non-sharable and the premium value is a bit higher.|
|Insured people||Generally, here the insured people refer to the self, spouse, dependent children, and dependent parents or in-laws.||Here, the insured person is only the self. No other person can be included under the same sum insured.|
|Example||Suppose, Mr. Sharma has opted for a family floater plan for the sum insured of Rs. 15 lakhs, and he has included his spouse and two dependent children. Now, they can only use up to Rs. 15 lakhs for all their health claims during the year.||Suppose, Mrs. Bose has bought an individual health insurance plan for the sum insured Rs. 10 lakhs for herself and her husband. This means, she and her husband both will have Rs. 10 lakhs each to cover their health needs throughout the year.|
Which One Is Better, Family Floater or Individual Health Plans?
It would be improper to decide in just one single line which type is better because both individual and family floater policies have come up with certain advantages, which have made them popular among the policy-seekers. If you have a medical history in your family or if you have a bigger family including a senior citizen, it would be advisable to go for the individual policy as you can use the entire sum insured for yourself. But, if you are looking for something budget-friendly, yet beneficial, the family floater policy would be more suitable for you as you can include your family members under the same sum insured. In this case, you need to choose the sum insured wisely, bit on the higher side so that at the time of medical emergency, the coverage amount does not fall short.
Remember, both the policies have some pros and cons. So, the choice is totally up to you and your requirements. In this case, you can keep in mind a few factors before choosing a type between these two, and they are – a) Your budget and financial condition, b) The medical history of your family, c) The number of family members, d) Your future needs, e) The medical attention that your family members need, f) Coverage, g) Premium amount, etc.
After going through the above discussion, it can be said to conclude that to make the policy budget-friendly, do not compromise the health and well-being of yourself and your beloved persons. The right approach should be to cover all the family members and to reap maximum coverage, for both plans. So, do understand your needs very well, and study the plans thoroughly, only then go for the desirable and convenient one.