Medical emergencies can strike at any time, making it crucial to have a reliable mediclaim insurance plan to ensure financial security and access to quality healthcare. When it comes to securing medical coverage for your family, you can choose between an individual health policy and a family floater plan. Understanding the differences between these two options can help you make an informed decision.
Here, explore what is floater policy in health insurance and the difference between individual health policies so you can make an informed choice.
What is Family Floater Health Insurance?
Family floater health insurance covers the entire family under a single policy. Instead of buying individual policies for each family member, a single sum insured is shared among all members.
This means any member of the family can avail of the insurance coverage up to the policy’s limit. The premium for a family floater policy is based on the age and health profile of the oldest member of the family, as well as the chosen coverage.
This type of policy provides comprehensive coverage for all family members at a relatively lower cost than individual policies.
What is Individual Health Insurance?
Individual health insurance provides coverage for one person. Each family member needs to have their own separate insurance policy. The premium for individual health insurance is calculated based on the age, health condition, and risk profile of each insured person.
This option is suitable if you are looking to get health coverage for specific family members or if any member needs special coverage, such as for critical illness, cancer, or cardiovascular conditions.
Differences Between Family Floater and Individual Health Insurance
Here are the differences between the two health insurance plans:
1. Coverage and Flexibility
In a family floater policy, the sum insured is shared among all family members. If one family member exhausts a significant portion of the sum insured, the coverage for other family members may be affected until the policy is renewed.
On the other hand, individual health insurance provides separate coverage for each insured person, allowing more flexibility in utilising the sum insured.
2. Premium Calculation
The premium for a family floater policy is determined based on the age and health profile of the oldest member of the family. In contrast, individual health insurance calculates the premium based on the age, health condition, and risk profile of each insured person.
This means the premium for individual health insurance may vary for each family member, while the premium for a family floater policy remains the same for all members.
3. Coverage for Dependents
Family floater health insurance provides coverage for the entire family, including the primary policyholder, spouse, and dependent children. In some cases, it may also cover dependent parents. Individual health insurance, on the other hand, provides coverage only for the insured individual. Each family member needs to have their own separate policy to be covered.
4. Price
If you have more than a couple of family members and seek coverage for each member, you may find the price of including multiple members in a family floater plan may be slightly lower than buying individual plans for each member of the family. Using a premium calculator for respective policies can help you get a better idea of the same.
To summarise,
Conclusion
Choosing between individual health insurance and a family floater plan depends on your family’s specific needs. A family floater plan offers the convenience of covering all members under one policy and may be more cost-effective. However, individual health insurance provides dedicated coverage for each member, which can be beneficial if there are varying health requirements within the family.
Evaluate your family’s health needs, compare different health insurance plans, and use a premium calculator to determine the most suitable option. By understanding the differences and assessing your requirements, you can make an informed decision and ensure the well-being of your loved ones with the right mediclaim insurance.
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The information presented is not meant to be a substitute for medical advice. Any suggestions mentioned should be considered for general use only. For expert guidance on any health ailment or medical issue or any treatment/procedure, please consult a certified medical professional.
The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.