What’s Right for You? Individual v/s Family Floater Plans
Health insurance in 2021 is no luxury but in fact, a necessity. Increasing health costs, soaring hospital bills have made it imperative to seek financial protection for medical treatment. Hence, health insurance is a part of prudent financial plans.
Health insurance plans come in different flavours. Some are specifically designed to treat critical ailments like a cancer and heart attacks whereas other are more generalist in nature. But two of the most common types of insurance plans that can be bought are an individual cover and family floater plan. This article helps you decide what should be your pick considering the various conditions in which they come handy.
What are individual health policies?
As the name suggests, an individual policy caters to one beneficiary i.e., the policyholder. The premiums are levied based on various factors like your age, any existing health conditions, any vices like smoking or drinking and more.
What are family floater plans?
Unlike an individual policy, family floater health insurance plans cover more than one beneficiary within its coverage. Your entire family can be covered in one single policy and hence there is no need to manage multiple policies and its renewal. A blanket policy takes care of the entire family’s healthcare requirements.
Points based on which a family floater cover ranks above individual policies
- Cost effective insurance policy
For a family floater plans, a common insurance coverage floats among all beneficiaries of it. Hence, a single insurance policy is available for all insured members. This way you can avail a just one policy that saves you the premium of buying multiple insurance plans. However, the premium of such policy is based on the type of coverage sought and the number of beneficiaries covered.
- Avoid hassle of managing multiple insurance policies
A family cover eliminates the hassle of managing multiple insurance plans. If you opt for an individual policy for each member, you’d have to deal with different renewal dates and different amount of premiums for each member. All of this trouble is saved when you opt for a family floater plan.
Points where an individual plan ranks above the family cover
- Fixed sum insured for each family member
Buying individual policies for every member assures a fixed sum assured for each person. This way, any one person requiring medical treatment does not end up lowering the available sum assured for that policy tenure for other family members.
- Accumulation of cumulative benefits
Policies with cumulative benefits help increase the sum assured of your policy for the years when no claims are made. The same is not possible in case of family floater plans wherein a single claim by any beneficiary loses all the accumulated benefits for other members. * Standard T&C Apply
When you should buy either type of insurance plan?
The premium for a family floater policy is determined based on the age of the eldest member. Hence it is advisable to buy a family floater plan when the beneficiaries are of the same age group. Including your parents who are senior citizens will impact the premium severely thereby bumping up the premium costs. In such cases, opting for a health insurance for senior citizens is advisable whereas other beneficiaries can be covered with a family floater plan.
Individual policies are best when you are starting out in your life with no family commitments or for the times when your parents are separately covered by a different health insurance already. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.