Should I Buy An Individual Or A Family Floater Health Insurance?

Health insurance policies play a vital role in today’s world full of uncertainties. Each and every member of a family must have a health insurance policy in their name to shield themselves from any unforeseen event which might require medical treatment. It helps the individuals to get compensation in case of an emergency to avoid spending their financial savings on hospitalization costs. You can buy individual health insurance policies for each and every member of your family or you can simply cover them under a single plan or commonly know as a family floater plan.

An individual health insurance plan covers one person under a health insurance policy and provides a sum assured according to the needs and demands of that one particular individual. However, a family floater plan is an extension of an individual health insurance plan, as it covers multiple people of a family under one single plan. That is, there is a single rate of premium and policy documents for a family floater plan, but the sum assured is distributed among the applicants of the plan. It can include you, your spouse, children, and dependent parents. 

About Individual Health Insurance Plan 

As the name suggests, it covers one individual under its health insurance policy and is best suited to meet some particular demands of an individual. A person suffering from some chronic disorder should go for an individual health insurance policy as the sum assured will be higher and the benefits will not be distributed like that in the case of a family floater plan. You can buy this type of health insurance policy for your senior citizen parents. 

About Family Floater Health Insurance Plan 

This type of health insurance plan covers all the members of your family under a single insurance policy. The sum assured and the benefits are distributed among the members of this plan. It is a suitable option to go for, as it is financially feasible and covers all your loved ones under a single policy. In the case of a family floater plan, it should be kept in mind that if the complete sum assured is used by one member of the family then nothing will be left for the other members included in the health insurance plan. This plan is best suited for nuclear families but is not suited for families with a member suffering from some chronic disease. If you purchase a family floater plan covering a family member with a critical disease then the entire sum assured will be spent on the treatment of that person, leaving nothing for the rest of the members in the insurance plan. Therefore, such people with critical diseases should be included in a separate health insurance cover or a top-up health insurance plan. 

Which One Is Better - An Individual Or Family Floater Health Insurance Plan?

An individual health insurance plan is effective as it covers the requirements of an individual without compromising it with any other individual while in the case of a family floater plan the single sum assured may not be sufficient to meet the demands of all the members of the family under the health insurance policy. 

A family floater plan comes with extensive coverage and is cost-effective. Also, it has a one-time premium payment for all the members included within the health insurance policy. However, if you purchase an individual cover for all the members of the family separately then the premium costs might add up to strain your finances. 

Therefore, it can be inferred that both of the health insurance plans have their own set of advantages and disadvantages. And so, you must consider buying the one which meets your requirements at an affordable price. If there is a member in the family with a pre-existing critical disease, then for that individual a separate plan with sufficient sum assured must be purchased. 

Conclusion 

You have to make a choice between an individual and family floater health insurance plan by comparing the policies and taking into consideration your financial budget. You must carefully read the fine print of the policy to make sure that your demands have been covered.  

Also Read: Benefits of Individual Women Health Policy

Tips To Select the Best Family Floater Health Insurance

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.