When we talk of your family members, health insurance is perhaps one of the biggest decisions that you can make. But here is the dilemma most families find themselves in: Do you get individual health insurance for every family member or take a family floater health insurance policy? Let’s make it simple and place both side by side, so you know what to choose for your family.
What is Individual Health Insurance?
Individual health insurance covers one individual. Each and every member of the family has his/her own independent plan and sum assured. For example, if you buy a ₹5 lakh policy for yourself and another ₹5 lakh policy for your spouse, both of you are insured individually.
Benefits of Individual Plans:
- Each has his/her full coverage amount.
- Fits when one family member may need more medical attention.
- No division of the total insured amount.
Disadvantages of Individual Plans:
- More expensive, as you are paying for individuals individually.
- It may be difficult to manage numerous policies.
What is Family Floater Health Insurance?
Family floater health insurance is a single, big umbrella for all the family members. All of them get an equal amount of sum insured. For example, if you buy a ₹10 lakh family floater policy, the whole family can utilise this amount as a family.
Advantages of Family Floater Plans:
- One policy for the entire family is easier to control.
- Less expensive than many independently taken policies.
- Perfect for young and fit families where all members are in good health and thus, medical care is not likely to be needed at any given moment.
Disadvantages of Family Floater Plans:
- The total sum insured is combined and, therefore, if one member uses most of it, a lesser amount will be left for others.
- The rates may also become more expensive if the elderly parents are covered, as the cost is age-related.
Which One Offers Better Value?
It depends on your family’s needs.
- For young couples with children and no chronic illness, family floater health insurance is generally the most suitable solution. It is affordable and provides sufficient coverage to every member.
- On the contrary, if the family is aged or a certain individual has excessive medical requirements, individual policies might turn out to be a better alternative. Thus, each individual gets his or her personal, decided cover, which is not accessible to others.
A Smart Approach
In some cases, a combination of both is the right one. You could have a family floater for you, your wife, and your kids and get a separate individual cover for your parents or the elderly. This type of blend is great value for money and excellent cover.
Conclusion
It is not what is mostly best, though, but what is best for your family’s health, age, and budget. Comparing, contemplating the future, and then choosing. In the end, health insurance is not just dollars; it is tranquillity and love for those who matter most.
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