Comparing Individual and Family Floater Health Insurance Plans
Individual or Family floater health insurance? This is a question that bugs most of the first-time health insurance buyers. You can choose to buy individual health insurance policies for all the family members or you can cover all members under a single family floater plan. While both the policies offer the same benefit of health insurance coverage, they are different in terms of features. The right choice is totally dependent on a person’s individual needs. So to help you make the right decision, we have compared Individual and Family Floater health insurance policies based on important factors such as: -
While the price does matter at the time of buying health insurance, it should not be the only criteria for choosing a policy. If your family members are young and there isn’t much age gap between you and your spouse, buying a family floater plan will be cheaper than individual health insurance plans. So when it comes to the price, family floaters have an edge over individual health insurance plans.
If you want to cover all your family member, a family floater plan will give you a larger coverage for a lesser premium. In other words, a family floater plan offers a larger coverage at an affordable price, unlike individual health insurance. For instance, if you want a health insurance coverage of Rs 10 Lakhs, you will have to pay only a one-time premium and the coverage will be applicable to all the members. However, in case of individual plans, you will have to buy multiple plans which offer the coverage of Rs 10 Lakhs which will clearly cost you more. Hence in terms of coverage, family floater plans are better than individual policies.
In a family floater plan, the cover is shared by all members of the policy. Hence, if one family member makes a claim, the cover reduces by that much for all the members. In case, due to unfortunate reasons all family members need treatment in the same year, the cover might not be sufficient. This scenario will not arise with individual plans as the coverage is not shared. So as far as sum insured is concerned, individual policies have an edge over family floater plans.
While it’s true that family floater plans can be cheaper than buying individual policies for all family members, the price advantage can diminish if the age gap is wide. This could happen if age gap between the spouses is huge, or if your elderly parents are covered under the policy. The costs could increase further if any of your family member suffers from a pre-existing disease. So, if the age gap between your family member is wide, buying individual health insurance plans will be better than family floater plans.