What is the difference between Family floater and Individual health insurance?
“It is health that is the real wealth and not pieces of gold and silver,” said Mahatma Gandhi. Many leaders have stressed the importance of having good health, and the Covid-19 pandemic has shown people that even those who are blessed with good health are not spare. But still, the need to possess a health insurance policy is required more than ever for ourselves and our family with suitable plans such as Family floater or Individual health insurance, Mediclaim covers, etc., considering the rising healthcare costs.
Having health insurance helps to pay for medical emergencies that have to be encountered unexpectedly. Although different types of medical insurance policies are available in the market, family floater health insurance plans are preferred by many, for it offers comprehensive benefits for the entire family.
To understand the difference between a family floater and an individual health insurance plan, let us first understand the meaning of each in detail.
Individual health insurance
The meaning of individual health insurance can be derived from the name itself. It is a type of insurance that reimburses the policyholder’s medical expenses in case of any hospitalisation. The coverage is provided only for the individual and not for his/ her family.
This type of health insurance policy holds good when you want to have a separate cover to utilise the entire coverage amount. Such plans also offer income tax benefits for the individual, which can be utilised at the time of income tax filing. For single unmarried people, living alone without any dependents, individual health insurance is the right choice.
Family Floater Health Insurance
In India, with a concept of living in joint family culture, it’s necessary to secure the family from health expenses that arise at any point in time. A family floater health insurance helps achieve this goal, as it is a type of insurance plan that protects and covers health-related expenses for the entire family in a single plan by paying a single premium. The coverage amount is shared among all the family members and can be claimed by everyone.
Let’s says a family of 4 can avail a family floater health insurance with sum assured of 5 lakhs. If any medical emergency, any member of the family is eligible to make use of the coverage amount on the hospitalisation expenses anytime, provided the cost is within five lakhs for that particular.
An important thing to keep in mind is that, if one family member exhausts the entire sum assured in a year, all the other family members will not be eligible to utilise the coverage until the year is passed. This can be called as one of the most significant disadvantages in the family floater health insurance. A family floater plan can be called an extended version of the individual health insurance customised to accommodate the family requirements.
Now let’s look into the comparative analysis between the individual health insurance and family floater health insurance.
Coverage: The benefits and offerings of a family floater health insurance are generally provided to the primary nominee. That is yourself, your spouse and your two children are insured under the family floater. However, if you have an extended family, you can’t use a family floater. One may opt for a different plan in such circumstances, called the individual family floater that offers coverage for senior citizen parents, in-law parents, siblings, and three or four children. The individual floater is designed in such a way that it compensates and covers other members in the family too.
Sum assured: Under one sum assured, all your family members are insured in a family floater health insurance. The sum assured keeps changing as in when the members claim it for paying for medical costs. Suppose one person completely uses the coverage for his medical expenses. In that case, the others will not be able to claim any benefits in case they are subjected to medical emergencies. In an individual health floater, the policyholder gets one stand-alone health insurance policy with a sum assured that he/she could use completely without sharing.
Premium: The premium of the family floater health insurance depends on the oldest member’s age in the family. But in an individual health insurance floater, there is no such rule, since the health policies are brought individually. The age of that particular individual only matters while calculating the premiums. The family floater, health insurance policy, is more affordable for young families as the members’ health is on a better side. In case elder members have any pre-existing health conditions, then individual health insurance is the best option.
Age factor: As earlier mentioned, age plays a vital role in selecting any insurance policy. The parents’ age doesn’t matter in a family floater but, consequently, the age of the children matters. For instance, the age of the children varies between 18 to 25 years for various insurance plans. Beyond a particular age, they are treated as adults and will have to separate individual plan coverage. If they are getting married, they will have to move out from their parent’s family floater and buy another new family floater or an individual health insurance policy plan.
However, choosing a family floater health insurance plan or an individual health insurance plan depends on the type of family set up, considering the various factors like the sum assured, age of the family members, the premium you want to pay, and mainly the coverage that your choosing based on the health condition of everyone in the family. This ensures complete and safe protection in case of unplanned medical emergencies.
Both the plans serve the same purpose of protecting the insured against sudden illnesses and hospitalisation charges. But choosing between the two entirely depends on an individual’s requirement, budget, and family health status. Whichever plan you may choose, visit BimaKaro.in to research correctly and choose the right plan.