Health insurance is an integral part of one’s life. With the rise in medical facilities and advancement of techniques and sedentary lifestyle of people, it is essential to buy a medical cover. While buying a health insurance plan, one may get confused about – which will be better Family floater or individual Plan?
Health Insurance-Which is better family floater or individual
Let’s discuss in detail which one will be better and what is the difference between both.
Table of Contents
Family floater meaning
Family floater health insurance is the insurance plan which covers multiple family members in one policy in the same premium amount.The Family floater health cover is extended to the entire family.
These plans act as an umbrella to the coverage for the entire family.
For example,
Suppose Anil 32,takes a family floater of 5 lac for his family, consisting of his wife, daughter and son.
Now,in case of a floater plan every member can take 5 lac cover.
Suppose Anil gets hospitalized and consumes 2 lac in medical bill and in the same policy year his wife gets admitted then she is eligible to consume another 3 lac.
Similarly in case kids or Anil or his wife also get admitted again then they can utilize the unused sum assured.
Nowadays the floater plans are coming with restoration benefits.
The person can restore the full sum assured upon the partial use of the cover amount.
Individual Plan
These health insurance for single person only or individual centric. Thus an individual health insurance plan covers one single individual only.
Which is better: family floater or individual?
Cost Effectiveness :
Family floater plans are comparatively cheaper as compared to individual plans because a comprehensive coverage is given to each family member. In case of a claim the sum assured are reduced to that extent as explained in earlier example. Individual Plans are costlier plans as compared to Floater plans.
Better coverage :
Individual plan offer better coverage as the sum assured can be used by only one person. Whereas in floater plans the same coverage is used by all family members.
Disadvantage of Family Floater Plan
The only disadvantage is reduced cover for the second person if one person has used the plan. Otherwise all the benefits are shared well amongst the family member. Otherwise the plans are equaly good as an individual plan.
Conclusion
For a family person, floater plans are better because of cost effectiveness. But if you are worried about a lower cover then one can increase the coverage amount by adding a top up plan.
Additional Reading : How to increase your medical cover cost effective way
How to decide health insurance cover amount?
In some cases, if the eldest member is a senior citizen or a person with any critical illness, then individual plans may be a better bet. Because the premium may be hiked due to age factor or illness of a person.
