Which One Should You Buy- Individual Health Policy or Family Floater?

To buy or not to buy insurance has been an old query for which answers have been found. Of course, one has to buy insurance, but for whom to buy is the next question that is posing as a dilemma for most prospective clients. Health insurance for self or for the entire family and at what time is something to ponder about. Don’t worry, it is not rocket science and we’ll help you to make an easy decision.

Here we bring you the details about both the plans so you can take a decision accordingly:

Individual Health Policy

Advantages

1. The policy works best in case the family consists of the older members as each one can be covered for individual health risks without affecting other members’ qualifying criteria or premium amounts.

2. Most of the individual health insurance policy does not have restricted renewability clause. You can renew the policy at any age provided you meet the terms and conditions of the plan.

3. Till the time the policy is in effect, the insured can avail the benefits of loading and discounts. In other words, just because you filed for a claim in a particular year, the insurance company can’t charge you a higher amount the following year at the time of renewing the plan.

4. Each member is entitled to the complete sum assured of the policy.

Disadvantages

1. Buying individual covers for every member of the family becomes expensive.

2. The premium for elder members with pre-existing diseases is higher.

3. If you have utilised the sum assured due to hospitalisation in the beginning of the year, you can’t claim it again in case of an emergency.

Family Floater Health Insurance

Advantages

1. The premiums are low for a young family and offers greater benefits.

2. If you have filed for only one claim in a year, the balance amount can be utilized by any of the rest of the members during the remaining year, which means greater coverage for everyone.

3. Health insurance plans for family cover you, your spouse, kids and parents as well under one plan so there are no complications of follow up with different insurance providers or managing too much of paperwork.

Disadvantages

1. Family floater health insurance comes with a maximum limit on the age for renewability. It is generally fixed at 60 or 65 years or as defined by the individual insurance provider.

2. In case a single member has made use of the sum assured in a given year, the remaining members are left with lower corpus to face any other medical emergency.

3. If any member suffers from a pre-existing disease or acquires a new disease, the premium goes significantly higher for the entire family.

4. The premium amount will be fixed as per the age of the eldest member, thereby stealing the youngest members of the benefits of lower premiums owing to their good health.

5. Can cover children only till the age of 25 years. After that, they have to be excluded from the family floater plans.

These are some of the pluses and minuses of both the plans. You can analyze your needs carefully and then decide as per your requirements. Whether you decide to buy health insurance plans for family or for yourself on an individual basis, it is going to help you face unforeseen medical challenges. Be sure, you’re well-prepared and ready for it.

Harjot Singh Narula

Harjot Narula is founder and CEO of ComparePolicy.com, an IRDAI approved insurance web aggregator focussed on selling online insurance for companies. Harjot has more than a decade of experience in software development and has also spent 5 years in US working for the mortgage and risk management industry.

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