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Family Floater Vs. Individual Health Insurance: Which Is Better For You?

Health insurance is just as important as life insurance, if not more so. A proper health insurance plan ensures financial help at any time when you need medical assistance and not just financial aid after your death. Such an insurance policy can determine whether you would survive a chronic medical condition or not.

Now, health insurance is divided into two major sections, namely, family floater plans and individual health insurance plans. You need to be aware of what these plans entail and which one suits you better before choosing one over the other.

Difference Between The Family Floater and Individual Health Insurance Plans

 

What is the difference between family floater health insurance and individual medical insurance?

Before you choose the option that would meet all your requirements, you need to know what the differences are between the two. The first and most important distinguishing feature is that the family floater scheme is a single policy designed to offer coverage to the entire family.

In case of individual health insurance policy, only one person is covered per plan. This means that your spouse would need to purchase a different policy in order to get the same health coverage as you.

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Reasons why family floater plans are better than individual health insurance plans:

  • Family floater allows you to maintain a single policy for your entire family. However, in case of an individual health insurance policy, only the policy owner is covered, while other members of the family need to sign up for plans of their own and these plans are also ones with the relatively higher cost of the premium.
  • A family floater plan gives you a better worth for your money, as having to ensure each member separately would cost you more. If you live with your parents and spouse, you would need to purchase four policies individually in case of normal health insurances and that could be difficult to manage financially for most Indian families.
  • Lastly, the family floater plan is compulsory if you want to provide health insurance to minors. Individual health insurance is only offered to people with a source of income. Since children and minors do not qualify for the same, they are usually left without any health coverage.

 

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Instances when the individual plans can be more beneficial than the Family Floaters plans:

  • A family floater plan allows you to renew it up to a certain age only. For instance, if the limit is 65 years and you reach that age, you will not be able to renew the plan any longer. All the members linked to the health insurance will also suddenly lose coverage, even if they are below the age of 65. However, individual health policies only take into account the age of the policyholder.
  • If one member linked to the plan claims the insurance in a particular year, all other members on the same policy will lose their No-Claim Bonus options. This can be a substantial loss under some conditions. Since an individual health coverage only protects one person, there is a greater chance to take advantage of No-Claim Bonus.
  • A family floater insurance policy only covers the immediate relatives that you may have. For instance, these plans offer coverage for your spouse, kids, and your elderly parents, if they live with you. However, if you have other family members living with you, they would have to opt for their own individual health covers.

 

Which one should you pick?

Both family floater health insurance plans and individual health insurance policies have their own advantages and disadvantages. Each plan is tailored for certain specific situations and circumstances. For instance, if you live with your spouse and kids, you will likely want to opt for a family floater plan. However, if you stay only with your spouse and kids are not in the picture, a family floater plan makes no sense for you.

Thus, you should consider your requirements carefully, before deciding on one or the other. This will ensure you pick the correct policy, which will aid you in the future.

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Harshit Jain

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