Many people have begun to realize the immense benefits of having a health cover. The fact that a health policy covers various medical expenses in addition to hospitalization costs is widely known. However, there are many people who are still confused when it comes to selecting the right policy.
Whether to choose individual health insurance or a family floater policy is a question many are looking for answers to.
Although individual health insurance offers a lot of flexibility; yet one cannot ignore the benefits offered by health insurance plans for a family.
In this article, we highlight the difference between these two types of health policies so that you can make the right decision.
Basic Difference between Individual Policy and Family Health Insurance
Individual health insurance is a health cover wherein the sum insured, and various policy benefits will be entirely available for the insured person. He or she has the option to customize the policy and to add new members to the policy.
On the other hand, family health insurance covers more than one member of a family under a single health policy. The sum insured available in this policy can be utilized by all the insured members, unlike an individual health policy.
The premium is another factor that makes these two policies differ from each other. The premium under an individual health policy will be determined based on the age and medical history of the insured person. In family health cover, on the contrary, the premium cost will depend on the age of the eldest insured member and the medical history of all family members.
When should you opt for Individual Health Policy?
In individual health policy, the entire sum insured is available for the policyholder. This is an advantage that is not available in a family floater policy where the sum insured is shared by all the insured members. Another point is that the cost of family health policy becomes higher if the age gap between self and spouse or the eldest member’s age is high.
Moreover, if a family member is suffering from a medical condition, then buying an individual health policy with customized benefits is a sensible approach. In this case, buying a family floater may not be advantageous as it can lead to high premiums.
Considering these facts, going for individual health policy is strongly recommended when it comes to getting coverage for specific illnesses.
When should you opt for Family Health Policy?
By opting for a family health insurance policy with a high sum insured effectively safeguards you from rising medical expenses. The sum insured can be utilized by any member without any restriction. There is also the option to add more members.
Furthermore, going for a family floater policy is an affordable option as maximum coverage is available for a single premium paid under the policy. This is true especially when we look at the premium costs in case each family member opts for a separate individual policy. So, when we consider affordability as our prime focus, family floater policies score over individual health policies.
Health insurance plans for family and individual health policies both offer comprehensive cover for medical expenses involving in-patient care, daycare treatment, ambulance cover, pre and post hospitalization medical costs, etc. However, you should keep in mind the differences, as given above. This will help you understand your priority better – be it affordability or the need for specific individual cover – and ultimately make a wise decision.