In India, approximately 514 million people are covered under a health insurance policy. However, when it comes to choosing the right policy, people often face a dilemma: which one should they pick?
Family floater and individual policies are the common picks, and knowing the difference between them will help you buy the best health insurance policy for your family.
Understanding Family Floater Plans
Imagine paying 1 single premium to cover health emergencies for your entire family? This is what a family floater health insurance policy offers. This cost-effective option lets you club all the features of a family health insurance plan and use it according to your family’s health needs.
Understanding Individual Health Insurance Plans
Having an individual health insurance plan means you get personalised health coverage for yourself. If you have a family, this means every family member needs to have their own personalised individual cover to reap the benefits. Basically, it covers a single person.
Difference Between Family Floater and Individual Medical Insurance
Understanding the difference between the two best health insurance policy will help you choose the right one.
| Feature | Family Floater Insurance Plan | Individual Health Insurance Plan |
| Premium Calculation | Based on the eldest family member | Based on the individual’s age and health status |
| Affordability | Highly affordable for families | Expensive for families |
| Sum Insured Distribution | Any insured family member can use it | Only an insured individual can use it |
| Claim Process | Any family member can claim it | Only the insured person can make a claim |
| Average Premium (Approximate) | Best plans start at ₹19,300 per year for a ₹10 lakh coverage for 4 members | Best plans start at ₹9,500 per year for a ₹10 lakh coverage |
Now that you know the difference, let us move on to the benefits to help you decide which one suits your needs the best.
Benefits of Family Floater Medical Insurance
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Single Premium for Entire Family
One of the core features of a family floater plan is its cost-effectiveness. By paying a single premium for your entire family, you stay within your budget. For example, you can easily get a ₹10 lakh coverage for a monthly premium of ₹1,600 (approximately)! Plus, you can avail of additional discounts if you buy online.
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Flexible Plans for Family
Family floater plans are flexible, meaning anyone under the plan can use it for their health requirements. You don’t need to stay within a fixed personal limit. For example, in a ₹10 lakh plan, a member can utilise as much as they want up to the limit. Moreover, many plans come with reinstatement benefits, so you never run out of sum insured after its depletion.
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Easy to Manage
Lastly, the best health insurance policy are those which dos not cause stress. And a family floater medical insurance plan fits the bill perfectly. With a single document, you eliminate hours of sorting and record-keeping. Plus, with insurer-enabled apps, you can store all your documents digitally, making it even smoother and hassle-free.
Benefits of Individual Health Insurance
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Personal Coverage for Everyone
One of the biggest advantages of individual health insurance plans is personalised coverage. Since everyone gets their own health insurance policy, they can customise it according to their unique health needs.
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No Insufficient Coverage
Individual health insurance plans provide a large amount of sum insured, so that no one’s health is compromised. For example, if you buy a ₹10 lakh health insurance for your wife, she doesn’t have to share it with anyone else. Therefore, the chance of running out of the sum insured is lower.
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Exclusive Coverage Amount
Lastly, as one of the best health insurance policies in the market, individual health insurance provides exclusive coverage to all your family members. For example, if you have diabetes, you can get an individual plan customised according to your needs. Similarly, if your wife needs maternity cover, she can customise it and use the amount for that need.
Which One Should You Choose for Your Family?
So, the question arises: which should you choose? Individual health insurance plan or family floater plan?
Well, the answer depends on your individual needs. For example, if you are a young couple with minimal health needs, a family floater policy would be the best option for you.
However, if you have a family member who needs frequent medical help and hospitalisation, getting separate plans would be the wisest choice.
This is because, when they share a plan, they can quickly drain the sum insured amount, leaving other members at risk of being uninsured.
The Bottom Line
Buying the best health insurance policy needs a thorough understanding of your needs, comparing different plans and setting your budget. With this knowledge, you can select the plan that best suits you and your family’s needs.
