Individual Health Insurance vs Family Floater Insurance

Individual health insurance is a medical policy that provides financial and medical coverage only for a person. The policy can be purchased independently to get coverage for medical expenses like hospitalisation, surgeries, doctor consultations, prescription medicines and other costs for up to a specified sum insured, as mentioned in the policy.

Family health insurance, also known as family floater insurance, is a medical policy that provides health coverage to the entire family under one plan. Instead of providing individual insured sums to each family member, a total insured sum is shared among them on a floater basis. The family floater plan allows the insured family members to claim coverage during emergencies up to the total sum insured limit.

Here are the major differences between individual and family floater insurance.

Also Read: Individual Health Insurance Vs Group Health Insurance

Individual Coverage

As its name suggests, individual health insurance provides coverage for the specific medical needs of an individual. For example, if you have a history of critical illness, then you can get critical illness coverage in your policy.

Coverage Amount

One advantage of choosing a family floater or individual insurance is that the individual plan provides an exclusive coverage amount. This means that the entire insured amount will be used only for your medical needs.

No Monetary Insufficiency

In individual health insurance, there are no worries about inadequate financial coverage since the entire sum insured is available for the insider individual.

Tax Deductions

Investing in individual health insurance provides you with not only medical benefits but tax benefits, too. It allows you to make claims of up to ₹25,000 under Section 80D of the Income Tax Act.

Also Read: Tax Benefits of Health Insurance Plans

Coverage for All

Family floater insurance is ideal for providing comprehensive health policy coverage to all family members under a single plan. It reduces the workload of worrying about paperwork and payments for different health plans for each member.

Provides Coverage Flexibility

Family health insurance provides more coverage flexibility to choose coverage as per the health requirements of all the insured members under the plan. Moreover, the family floater plan takes into account the health needs of every insured member. It means a family floater plan provides coverage for the various health needs of your spouse, children, and elderly parents.

Economic Efficiency

This insurance plan is quite cost-effective for families seeking coverage. The family floater has an affordable premium and coverage for every insured family member.

Tax Benefits

Similar to an individual plan, investing in a family floater insurance also provides you with tax benefits. You can claim deductions under Section 80D. Moreover, if you buy health insurance for your parents who are above the age of 60 years, then you can get additional benefits of up to ₹50,000.

Also Read: 80D Tax Deduction Calculator

Before you choose between individual and family floater insurance, consider these points.

Note Family’s Healthcare Needs

It is important to assess each family member's healthcare needs. Take note of their age, medical history, pre-existing conditions, etc. If these things differ, then buying an individual plan might be more convenient than a floater plan.

Check Coverage Limit

Compare the coverage limits of both health policies with your requirements. The individual plan provides a dedicated coverage amount to each insured person, while the coverage amount is shared in the family floater plan.

Affordable Premium

Compare the premium prices of individual and family floater plans. Individual plans are usually more expensive than family floater plans. Thus, make the choice based on your affordability and coverage requirements.

Think Ahead For Future

As you and your loved ones age, their healthcare requirements will also change. Consider this and rising inflation when choosing a health insurance plan. Choose a health insurance plan that provides flexibility and adequate coverage.

Also Read: Benefits of Health Insurance Plans in India

Understanding the difference between individual and family floater insurance must have cleared your doubts when making a choice. Individual health insurance is beneficial if you are looking for individual coverage and your family has different healthcare needs. Family health insurance is a great choice if you want coverage for your whole family under one plan, considering your family is generally healthy.

With a reliable TATA AIG health insurance plan, you can rest assured to get support and services for yourself and your family too. Our individual as well as family health policy includes cashless hospitalisation across any Indian state, ambulance cover, consumable cover, and coverage for pre- and post-hospitalisation expenses.

Moreover, with us, you get consumables cover, AYUSH benefits, vaccination cover and no claim bonus for a claim-free policy year. To get all these benefits, you can visit our official website and choose to get insurance either for you or a family insurance for the entire family.

Which is better for a family: a family floater plan or an individual plan?

A family floater plan is considered more effective for a family as it covers every family member under one plan and provides a single sum insured value for all. However, individual plans can be quite expensive for the whole family but have better coverage. Thus, the decision to get better insurance solely lies in your family's needs.

What is the entry age in the family floater plan?

The entry age in the family floater plan is 18 years for adults and 90 days for dependent children. However, these age numbers might vary depending on the plan you choose.

Can I change my individual health insurance plan to a family floater plan?

Yes, policyholders can convert their individual health insurance into a family floater plan. However, they must confirm with their insurer how doing so will affect their plan’s premium, coverage and other benefits.

Can both husband and wife make claims under a family floater plan?

Yes, both husband and wife can make claims under the family floater plan for amounts up to the sum insured value, provided both are covered under the policy.