Health insurance is a must-have, while building a financial plan. Often, you will be required to choose between individual health insurance and family floater plan. Before making a choice, you need to know the difference between both the plans. Read further to know more.
For a person who is new to health insurance schemes, should know that the type of plan you choose depends on budget and liability. Under health covers, you can buy an individual, family floater, critical illness or simply senior citizen plan. Each of these health insurance plans serve a different purpose. While buying, most buyers are confronted with prudent questions like whether they want to buy an individual or family floater plan. Today let’s compare the two variants and get to know which one you should actually buy:
Individual Health Insurance Versus Family Health Insurance:
- About the Plans: An individual health cover offers financial protection only to a single person. It doesn’t cover any of your family member, but insurers allow you to buy an individual cover for each member of your family. On the other hand, a family floater plan protects you and your family against any health emergency.
- Sum Assured: Under individual plan, the sum assured benefit is extended only for you till the policy term ends. However, the sum assured and annual premium in case of family health insurance is shared amongst all members.
- Advantage: One of the advantages of an Individual Health Insurance is that it offers extensive coverage for the sum assured that belongs only to a single person. Under family floater plan, affordable premium rate is the biggest benefit.
- Disadvantage: Under Family Floater Insurance policy, the combined sum assured can fall short if an unexpected accident strikes on all family members. However, if you buy an individual cover for each family member, then the cost of insurance can go high. In such a case it would be better to opt for family floater plan to avail of maximum benefits.
Which One Should You Buy?
When it comes to selecting a plan amongst the two, it depends on health conditions of you and your family and your financial situation. You should not choose a plan only because the premium is low.
Many prefer a floater plan over individual cover as it is cost-effective and protects all members both financially and health wise. Such a plan is recommended for nuclear families, but it can become a financial liability, if one member of the family has constant health issues. This will ultimately reduce the sum assured. Moreover, a floater insurance cover will not be sufficient if all family members meet with an unfortunate incident.
Buying an individual insurance for each family member will cost you more and it will be difficult to keep track on all the individual plans regarding add-ons, renewals or policy lapse. The bottom line is you should do your research first and then buy a suitable health insurance plan.