With rising healthcare costs and the uncertainty in life, health insurance has become an essential investment option. Not having health insurance coverage could prove to be expensive in the long run.
When you explore various health insurance options in the market, you will come across two types of plans- family floater plans and individual health insurance plans. Both these policies have their individual perks and downsides, and it can be difficult to make a choice between the two. To help you select the right health insurance plan and make the most of your investment, let’s understand the difference between family floater and individual health insurance policies in detail.
What is Individual Health Insurance?
As the name suggests, individual health insurance is a type of health plan that satisfies the insurance needs of an individual. So, if you opt for an individual health plan, you shall be the sole policyholder of the policy and your family members won’t be covered under it. It enables you to avail a dedicated sum insured amount to cover your healthcare expenses.
Such health insurance policies are suitable for people who want to secure their individual needs and do not have dependents. In case you have elderly parents, you can opt for individual health insurance for them and personalise it to secure their medical requirements.
What is Family Floater Health Insurance?
Family floater health insurance is a coverage plan that secures you and your family members under a single policy. For such a plan, the sum insured in health insurance, and the premium amount is shared amongst the members. When compared to individual plans, a family floater policy is much more cost-effective as it enables you to cover all your dependents under one policy.
However, if a single individual utilises the entire sum insured by the plan, the remaining members will have no coverage left. Thus, you must pick a sufficient sum insured amount for the family floater health plan to protect your loved ones during medical emergencies.
Family Floater Policy vs Individual Health Insurance Policy
When it comes to choosing between the two insurance policies, you must be stuck weighing the pros and cons of a family floater plan vs an individual insurance policy. To help you gain a better understanding of the difference between an individual health insurance plan and a family floater policy, here’s a comparative view based on several factors:
Factors |
Family Floater Plan |
Individual Health Plan |
Coverage |
Provides coverage to all family members covered under the policy.
|
The individual health plan provides coverage to a single person covered under the policy. |
Example |
If you buy a family floater plan for your family of four, with a sum insured of ₹15 lakh, every member of your family included in the policy will share this sum to meet their healthcare needs. |
If you buy an individual health insurance plan with a sum insured of ₹15 lakh, you (the policyholder) have the entire amount to yourself for all your health claims during the policy tenor. |
Benefits |
The advantage of opting for family floater health insurance is that the premium is more affordable when compared to buying individual plans for each family member. |
The benefit of individual health insurance is that you get a dedicated sum insured amount for your medical needs. You can avail maximum coverage under such a plan and don't have to share the policy with your dependents. |
Drawbacks |
The sum insured might not be enough to cover the needs of every family member. |
The cost of purchasing individual health plans for each dependent in your family can turn out to be expensive. Moreover, the sum insured in individual plans isn't as flexible as in a family floater plan. |
Suitability |
Family floater policy is suitable for families that don't have too many members or a nuclear family. |
An individual health plan is best for policyholders with specific health insurance needs. |
Suggestion |
Ensure you pick the right sum insured amount that covers your family sufficiently.
Furthermore, it is advised to refrain from adding senior citizens to the plan and buy a separate policy for them to avoid an expensive premium rate. |
Check for add-on covers that enhance your health insurance coverage and provide additional protection. |
Bottom Line
So, what’s the verdict after going through the difference between a family floater plan and an individual health insurance policy? When choosing between the two, you shall realise that individual and family health insurance plans have their specific features. So, whatever you decide to purchase, the insurance premium should not be the only deciding factor.
If you have young family members, it’s best to cover them under a family floater health plan and cover the elder ones under individual health insurance policies. That way, you can cover all the members of your family and secure adequate coverage for them at a reasonable cost.
At Bajaj Markets, we offer both individual and family health insurance plans with wide coverage to help you overcome medical emergencies without affecting your finances. To know more about health insurance, visit our platform today!
Important Update (Dated May 30, 2024) – Good news for Health Insurance policyholders! According to the Master Circular on Health Insurance Business 29052024 rolled out on May 29, 2024 by IRDAI, insurers are to decide on the request for cashless claims within 1 hour of receiving the request. Also, the final claim is to be granted within 3 hours after the policyholder’s discharge from the hospital. Insurers have been directed by IRDAI to establish necessary systems and procedures for this process by July 31, 2024.
The Master Circular on Health Insurance Business 29052024 circular is available here - https://irdai.gov.in/document-detail?documentId=4942918
FAQs on Family Floater vs Individual Health Insurance
Which is better, family floater or individual health insurance?
Both these health insurance plans are beneficial to safeguard you during medical emergencies. However, the choice of which policy you should opt for solely depends on your insurance requirements.
Are family floater plans more affordable than individual health insurance?
Yes, family floater health insurance is more cost-effective when compared to individual health plans. However, the health insurance premium shouldn’t be the only deciding factor when choosing a suitable health coverage for you and your family.
Can I convert my individual health insurance policy to a family floater policy?
Yes, you can convert your individual health plan to a family floater policy with the same insurance provider. Check the details of this process with your insurer for ease in migrating your health plan.
Do Bajaj Markets offer family floater and individual health plans?
Yes, you can purchase a family floater policy and an individual health insurance policy at Bajaj Markets! So, head over to our platform now or download our insurance app to get the best insurance coverage.
How can I buy health insurance online at Bajaj Markets?
You can follow the below-mentioned steps to purchase health insurance online at Bajaj Markets:
Go to the ‘Health Insurance Premium Calculator’ section on Bajaj Markets.
Input the necessary details about the person to be insured, along with your personal information like gender, contact details, etc. in the application form.
Choose the type of health insurance plan you want to purchase.
Review the health insurance policy terms and coverage.
Select the necessary add-on covers for enhanced protection.
Pay the health insurance premium online.
You shall receive your health insurance policy document on your registered email ID.
