Should You Buy An Individual Health Insurance Or A Family Floater Plan?

Health Insurance For Individuals

An individual health plan only covers one person. Additionally, the yearly premium cost is determined by the person’s age and the level of coverage.

Health Insurance For Floaters

A family’s several members are covered by a floater health insurance plan. In other words, depending on whose name you wish to put in the plan, a floater health insurance plan will provide coverage for you, your spouse, your kids, and your parents.

Here are the benefits:

  1. It saves you from managing too many policies, which is a bother.

Suppose you purchase individual policies for each member of your family. In that case, you will need to maintain each policy independently, read and comprehend each policy’s terms and conditions, keep track of each policy’s various premium due dates, and then calculate the total premium cost for all of the policies to keep track of your costs.

  1. Floater plans are affordable if the insured are in the same age range.

Floater health insurance plans are significantly less expensive than individual health insurance policies when the insured are of a similar age. For instance, the annual cost for a young couple in their early 30s would be Rs. 14,000 for a floater health insurance plan (coverage of Rs 10 lakh).

The drawbacks of floater health insurance policies compared to individual health plans are listed below:

  1. Each member’s insurance coverage amount is flexible.

Each participant of an individual health plan has a unique total insured. You have a personal health insurance policy of Rs 5 lakh.  Your health insurance paid the 2 lakh rupee hospital charge associated with your hospitalisation. In addition, if you need hospitalisation a second time during the same year, you can still receive the remaining Rs. 3 lakh of the insured value.

  1. The cumulative bonus is void if one member claims during a specific year.

Your health insurance provider rewards you with more coverage or a lower yearly payment each year without a claim. Both individual and floater health insurance policies are eligible for this benefit. ## *

When Is It Preferable To Purchase A Floater Plan Over An Individual Health Plan, And Vice Versa?

A floater health insurance policy’s premium is calculated based on the age of the oldest member covered. Therefore, the age difference between the oldest person covered by the policy and the other members should be considered while deciding whether to purchase a floater policy or health insurance for individuals.

Therefore, if you are single and your parents have their own health insurance, it makes sense to purchase individual health insurance coverage. Meanwhile, purchasing a floater health insurance coverage is advantageous if you are a young couple or have a family that includes young children.

A health insurance premium calculator you may use online to determine the amount of coverage required based on your needs.

* Standard T&C Apply

## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.