Securing the health of family members is best done with an insurance policy. Potential buyers may choose between an individual plan and a family floater. Making the decision between these options is not easy and understanding the differences may be beneficial.
Family floater plans
These family health insurance plans cover all the family members under a single plan. The fixed coverage is shared by all the members. Moreover, the premiums on family plans are lower than individual policies making the former more economical.
These health policies provide the benefits included in the insurance plan only for the policyholder. If more than one person requires health coverage, multiple policies need to be purchased. This makes it more expensive to cover more family members for a higher sum assured.
Following are the differences between family floater and individual plans
· Family floater is a more economical option
The family floater policy is an economical way of acquiring insurance coverage for nuclear families. A family is able to purchase higher coverage for each member at a lower premium in comparison to individual plans. However, if one of the family members has a pre-existing condition, the claims for him or her may be higher during the policy term. This significantly reduces the amount available for the other family members.
In such instances, combining family floater and individual plans becomes an economical option. In case elderly parents need to be included under the health insurance policy, choosing two family floater plans is recommended. This is a cheaper way to acquire health coverage when compared to senior citizen health insurance plans.
· Family floater offers more benefits on maturity
The premium paid on health insurance is tax deductible under section 80D of the Income Tax Act. A good knowledge of income tax slabs would help in understanding the benefits of the same. Including another member during the policy term or at the time of renewal is easy. This means including a new-born baby under the existing family floater plan is quick and simple. However, this flexibility is not available for policyholders who choose individual health plans.
Healthcare costs are constantly increasing and even a single hospitalization may result in havoc to the financial health of a family. Procuring individual coverage for higher sum assured for every member is very expensive. As a result, the family floater provides significant benefits.
· Family floater is ideal for younger families with low health risk
Choosing family floater plan when the individuals to be covered are young is prudent. This is because the possibility of health issues for younger individuals is low. Therefore, insurance providers perceive the family as low-risk with lesser claim possibility and offer higher coverage for a lower premium.
However, if one of the family members to be covered under the family floater plan has a pre-existing condition, opting for individual cover for him or her is beneficial. This is because the individual’s claims during the policy tenure will be more leaving lesser coverage for the other members. In the event where one of the other family members requires hospitalization and medical treatment, the coverage under the family floater plan may be inadequate. The costs may then have to be incurred through personal resources leading to financial difficulties.
Health insurance is important for every person irrespective of age, current health conditions, and gender. The rising healthcare costs and increasing illnesses due to the stress-filled modern lifestyle further reinstate the importance of mediclaim policies. Nuclear families are becoming more common in India resulting in each person being responsible for his or her own family and its well-being. In such situations, choosing between family floater coverage and individual coverage becomes difficult. Doing some research and understanding the features of both these policies are beneficial in making an appropriate decision. Several online resources offer beneficial information and individuals are advised to take advantage of this. In case, a person finds the procedure complicated, they may seek expert advice from insurance professionals to make the right decision.