Should I Buy Family Floater or Separate Individual Health Plan for My Family
With the rising cost of healthcare treatment, buying a health insurance plan has become one of the most important investment-cum-security tools. A health insurance plan is one of the best ways to protect oneself from paying exorbitant medical bills. Additionally, a health insurance plan is not only required for an individual but even for the entire family. With the increasing cost of medical facilities, having the entire family secured with insurance coverage is a need of the hour.
Health insurance coverage comes in two forms – An individual health insurance plan that covers an individual and family floater health insurance cover that provides coverage to the entire family. However, while purchasing a health insurance cover many are confused about whether to choose an individual plan or a family floater health plan.
How do the Individual Health Insurance Plan and Family Floater Health Plan work?
An individual health insurance cover is designed to offer health insurance coverage to an individual. The premium amount is based on the age of the individual. While, on the other hand, health insurance coverage to more than one member of the family under the same plan.
The aim of both these types of health plan is to provide health insurance coverage and mitigate the financial risk arising due to medical emergencies. However, there are a host of factors that you need to keep in mind before choosing any one of these plans.
- Premium Cost:
Premium amount is one of the biggest parameters to be considered while choosing the best plan. Under an individual health insurance plan, the premium amount charged for a single person. However, if the number of members increases, buying a family floater health plan for the family is much cheaper as compared to buying a separate health insurance coverage for every member.
The premium amount for the individual policyholder is higher as compared to the premium breakup for the entire family under a family floater health insurance policy.However, if an individual includes elderly parents in a family floater plan then the premium amount can get expensive because under a family floater plan the premium of the health insurance cover is dependent on the age of the senior-most member of the family.
- Insurance Cover:
Insurance Cover is another important parameter to consider while choosing between these two. Individual health insurance offers health cover considering the individual needs, however, under a family floater plan, the wider coverage can be purchased as a relatively cheaper premium amount. The ailments and diseases covered are also offered by taking into consideration the family mix.
Additionally, under an individual health plan, the sum insured is dedicated to only one person. However, under a family floater plan, all members share the entire sum insured. So, any member of the family can utilize the sum insured of the health insurance plan in a policy year.
- Claim Flexibility:
Under an individual health insurance cover, the claim flexibility is maximum as it is offered to a single person. So, at the time for claim registration, the individual is paid the claim amount subject to the terms and conditions of the policy. While under a family floater Mediclaim policy if the claim flexibility is also maximum as there is no restriction on the sum insured for a certain person. Anyone can utilize the claim amounting to the sum insured and subject to conditions of the insurance plan.
If you are a family of 4 with 2 adults and 2 kids then a family floater plan for the family is a better option as a higher coverage can be availed of at lower premium amount. However, if you have elderly parents and with a pre-existing medical condition then buying an individual cover( such as senior citizen health plans) for them will be advantageous in the long run.