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Family floater health plan or individual policy – which is a better option?
Family floater vs individual health insurance- Which is better? Let’s first understand them briefly.
Individual Coverage
Individuals can get insurance for themselves and their family members, such as spouses, kids, parents, in-laws, and siblings. Some insurers don't limit who can be covered. You can insure each dependent under one policy with a separate coverage amount for each. Each insured person can claim up to their coverage limit during the policy period. Premiums are based on age, chosen coverage amount, and other factors.
Family Floater
In a family floater policy, the entire family - spouse, kids, and parents - is covered under one sum insured. For instance, if you choose a Rs. 5 lakh floater policy for a family of four, it covers claims for multiple family members or multiple claims by one member, as long as the total doesn't exceed Rs. 5 lakhs. Premiums are usually based on the age of the oldest family member. Both policies have the same coverage and exclusions.
Let's explain with the help of four scenarios & decide on whether family floater or individual health insurance is better:
Single: When you are single, it is recommended to take an individual policy because the premium will be based on each individual's age. There is a lower chance of medical emergencies at a younger age, hence the lower premium.
Newly Married: It is always recommended that a married couple take a Family floater plan because it provides higher coverage at a lower cost covering more than one individual.
Family with young children: They are also recommended with a Family floater plan because the chances of all members requiring medical treatment at the same time are low.
Grown-Up Family: It is recommended to take a family floater for the couple and an individual policy for children. The premium is calculated based on the oldest member, so a separate plan for children is beneficial.
Family floater policies are gaining popularity because they provide overall coverage for the entire family at a reasonable premium. What will you choose?
