Health insurance plans provide financial aid during medical emergencies in exchange for regular premium payments. In addition, they offer tax benefits under Section 80D of the Income Tax Act. Insurance buyers also get access to a network of hospitals and cashless treatment.
There are various health insurance policies in the market. Two main types are- family floater health insurance and individual insurance plan. Customers find it difficult to choose between the two. They end up making the wrong choice due to this confusion. This article aims to provide clarity on the difference between these plans and enable you to make the right decision.
What is Family Floater Health Insurance?
Family floater health insurance plans cover the whole family. All the family members share the sum insured, and single premium payments are made. Therefore, these plans are more affordable and convenient. They are most suitable for nuclear families. Best family floater health insurance offers an adequate sum insured, wide coverage of expenses, lifetime renewability and reasonable premium.
What is an Individual Health Insurance Plan?
An individual health insurance policy is taken in the name of a single person. Different policies must be taken if all family members are to be covered. Each such policy will have a separate sum insured and premium schedule. It will depend on the age and health condition of every single member. If some family members are more vulnerable than others, an individual policy will also give you the option to customise the plans as per every member’s needs.
Family Floater vs Individual Health Insurance
The difference between individual and family floater health insurance plans can be summarised in the following table.
| Basis | Family Health Insurance | Individual Health Insurance |
| Meaning | Covers all family members under a single plan, i.e., one sum insured and one premium. | Covers a single person. Multiple policies are taken to cover the entire family. |
| Cost | Cheaper as one premium is to be paid. | More expensive as multiple premiums are to be paid. |
| Coverage | Limited as a heavy health expense of one member can impact the amount available for other members. | Wider as medical expenditure of one member doesn’t change the coverage available to others. |
| Convenience | More as a single payment schedule is to be adhered to. | Less as different policies will have different payment dates and clauses. |
Which is the Right Pick?
As seen above, both policies have merits and demerits. Family floater health insurance offers affordability, but limited coverage, especially if multiple members are admitted to the hospital simultaneously. On the other hand, individual plans are better if coverage is considered, but they are costly. The right selection will thus depend on your requirements. Do you need high coverage, or is cost the main priority?
If your family members are young and their age gap is low, there are fewer chances that a claim will be made. In such a case, go for family plans. On the other hand, buy individual plans if your family members have a poor medical history, as treatment costs can be high.
Conclusion
The incidence of diseases has been rising in India. This can be attributed to causes like poor lifestyle habits, high stress levels, pollution, etc. The situation has gotten worse due to high medical bills. A single medical emergency can deplete a lifetime’s worth of money. Thus, health insurance is now more important than ever.
Your work is not done even after choosing between individual or family health insurance plans. You should then select the insurance company you want to buy from. For the best family floater health policy in India, for instance, thoroughly investigate the various insurers, contrast their offerings, and read customer testimonials.
Also read: Inflation and Its Impact on the Healthcare Sector
