Which Is Better, a Family Floater or Individual Health Insurance
Medical costs are increasing with a rise in health-related uncertainties. Thus, the need for a good health insurance plan arises, which helps to get financial support in case of medical emergencies.
But before Buying any health insurance policy, decide whether to buy a family floater or an individual health insurance plan. Both plans have their own benefits, coverage, and suitability. So, it is very important to understand all the features of these health insurance plans to make a relevant purchase.
Let’s look into these health insurance types to know better about their differences!
Family Floater Health Insurance
1. Meaning of Family Floater Health Insurance
A family floater health insurance plan provides umbrella coverage to more than one person in a family. Instead of buying health insurance policies for every family member separately, it is always better to opt for a family floater insurance. This plan provides coverage to you, your spouse, your parents, and your children, depending on whom you want to get covered.
A single sum insured amount is used by different family members as and when needed, believing that every person will not fall ill at the same time.
2. Benefits of Family Floater Health Insurance Plan
Here are some of the benefits of family floater health insurance plans:
Easy to Manage
It is very easy for the policyholder to track the due date, maturity, and term of the policy, as one plan covers all the required members’ medical expenses in the family. This makes managing health insurance plans simpler and less time-consuming.
Cost Effective
A family floater plan’s premium is less expensive than an individual health insurance plan. You can get your whole family covered under one premium payment. This plan offers complete coverage with just one premium payment.
One Plan for Whole Family
This family floater plan covers the family members whom the policyholder wants to get covered under a single health insurance plan. You get coverage for your parents, spouse, kids, and yourself.
Tax Benefit
You can save money on taxes with a family floater health insurance plan. You can get a tax benefit of up to 50,000 INR if you have parents above the age of 60 years under Section 80 D of the Income Tax Act. In general cases, the amount is limited to 25000 INR.
Individual Health Insurance Plan
1. Meaning of Individual Health Insurance
As suggested by the name, an Individual health insurance plan covers the medical expenses of a single person only. To get coverage for all the family members, it is compulsory to purchase separate individual insurance policies for all the individuals.
If you are someone who wants coverage for yourself or any member of the family, this plan is best suited for you. An individual health plan is also beneficial in case of critical illness such as heart disease and cancer.
2. Benefits of Individual Health Insurance Plan
Some of the benefits of individual health insurance plans are as follows:
Best for High-Risk Individuals
An individual health insurance plan is designed with the motive of providing the best possible financial support for critical diseases in case of medical emergencies. The person can get higher coverage for any such medical emergencies.
Customised Coverage
For any person who is looking for customized coverage for medical concerns, an individual health insurance plan is a good choice. You can get coverage as per your preference and need through add-ons.
No Sharing of Sum Insured
There is no need to share your insured amount with anyone else. You can use it as per your need, anytime. Unlike floater insurance plans, all the sum insured can be just used by you in case of any medical emergency.
Tax Benefits
In case of an individual health insurance plan, you can avail the tax benefit up to 25000 INR under Section 80 D of the Income Tax Act. This deduction of tax is granted on the amount of the premium.
Family Floater vs. Individual Health Insurance Plan
Here is the difference between a family floater and an individual health insurance plan:
| Basis | Family Floater Health Insurance | Individual Health Insurance |
|---|---|---|
| Coverage | One policy covers the entire family. | One policy covers a person only. |
| Sum Insured | Shared among all insured families. | Fixed separately for each insured. |
| Cost Involved | Cost effective for families. | The cost is relatively higher. |
| Suitability | Families with no major health issues. | Individuals with critical disease. |
| Premium | Based on the oldest member’s age. | Based on each person’s age and health, separately. |
| Claim made | By any of the people covered under the floating plan. | Only by the insured individual. |
Which is Better, a Family Floater or an Individual?
Choosing between a family floater and individual health insurance depends on your family's health needs. A family floater is ideal for young, healthy families as it offers affordable and shared coverage. However, individual plans are better if you need higher coverage or have elder family members. Evaluate the budget, age, and health of your family to make the right choice.
Conclusion
To sum up, both family floater and individual health insurance plans have their own advantages. While a family floater is cost-effective and convenient for younger families, individual plans offer customised and better coverage for each member. Choice is yours!
Always consider the financial needs of your family before buying any health insurance plan. If you feel like having some expert guidance, feel free to contact customer care at Square Insurance Pvt. Ltd.
Can I include my parents in a family floater plan?
Yes, you can include your parents in the family floater plan.
Are tax benefits available under both plans?
Yes, premiums paid for both types of plans qualify for tax deductions under Section 80D of the Income Tax Act.
What do you mean by a family floater health insurance plan?
Family floater health insurance plan means a plan that provides coverage to you, your spouse, your parents, and your children, depending on whom you want to get covered.
Which plan is more cost-effective?
A family floater plan is generally more affordable than buying individual plans for each family member.
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