Individual Health Insurance vs Family Floater Health Insurance
- Author :
- TATA AIG Team
- ●
- Last Updated On :
- 15/03/2022
Everything that is important in life is worth investing time and effort into, and there is perhaps nothing as important as your health and that of your family. Owing to the ever-rising risks to health and the increasing incidence of diseases and infections, it is necessary to have an adequate health insurance policy.
Health insurance in India is relatively more affordable as compared to several other countries. There are two main types of medical insurance that you can choose from, namely individual health insurance and family health insurance. At Tata AIG, we offer excellent individual health insurance plans as well as family floater health insurance plans.
You can compare our health insurance plans on our official website and compute the estimated premium of the plan using our health insurance premium calculator. It is important to opt for the correct category of medical insurance plan, and this choice must be shaped by your health insurance requirements and budget.
What is Individual Health Insurance?
As is apparent from its name, an individual health insurance policy is a plan that offers coverage to one person. The entire sum insured under such a plan is available for the medical expenses of the insured. This plan is ideal for you if you are looking for medical insurance for your parents or yourself
Having separate individual health insurance plans for different family members, particularly the elderly members of the family, can ensure that there is sufficient medical insurance available for all family members. In addition to this, such a choice can help you keep different health insurance policies segregated and unaffected by each other.
What Is Floater Cover In Health Insurance?
If you are looking for a plan that offers medical insurance for your family, then you can opt for a Family Floater Health Insurance Policy. Such a plan provides you with the flexibility to include multiple family members under its coverage. You can opt for a family floater cover in health insurance for yourself, your parents, your spouse, and your dependent children.
The sum insured under a family health insurance plan is shared by all the individuals covered under the plan. If, for instance, you have a family floater health insurance policy with a sum insured of ₹50 lakhs and covering yourself, your spouse, and your parents, then the said plan can be used to cover the cost of the permissible medical expenses for all of the aforementioned individuals.
Differences Between Individual Health Insurance and Family Floater Health Insurance
Here are the major differences between an Individual Health Insurance Plan and a Family Floater Health Insurance Plan:
| Criteria | Individual Health Insurance Plan | Family Floater Health Insurance Plan |
|---|---|---|
| Meaning | An Individual Health Insurance Plan is a medical insurance plan that provides financial protection against several health-related risks to one person. | A Family Floater Health Insurance Plan is a medical insurance plan that offers financial protection against various health-related risks to multiple people in the same family. |
| Scope of the Coverage | The scope of coverage of an individual health insurance policy is restricted to one person. Therefore, if you wish to have individual medical insurance for different members of your family, you will have to purchase several individual health insurance policies. | The scope of coverage of a family health insurance plan is wider than that of an individual health insurance policy. You can include your spouse, your parents, and your dependent children under the umbrella of the same plan. Therefore, there is no need to purchase multiple health insurance plans for different family members. |
| The Sharing of The Sum Insured | The sum insured under an individual health insurance plan can be used only by the individual who is the insured. Hence the sum insured does not need to be shared amongst multiple people. | The sum insured under a Family Floater Health Insurance Plan is shared by all the family members who are beneficiaries of the plan. Therefore, any of the above people can avail of the coverage under the plan upto the ceiling of the sum insured. |
| Ideal For | Individual health insurance plans are ideal for families that have senior citizens. Since the elderly have a higher susceptibility to various diseases and infections, it is advisable to have a separate Senior Citizen Health Insurance Plan for them, one with a high sum insured and the required medical insurance benefits. | Family Floater Health Insurance Plans are ideal for small families that have members under the age of 60 years. Since individuals below the age of 60 years usually have a lower risk of health-related issues, the sum insured under a family floater health insurance policy can be sufficient to provide them with adequate health insurance coverage. |
| No-claim Bonus | The No-claim Bonus available under an individual health insurance plan has a higher likelihood of remaining intact since the plan covers only one individual who may end up not filing a health insurance claim during a particular policy year if they do not face any health-related challenges during that period. | The No-claim Bonus available under a family health insurance plan is less likely to stay intact since the plan covers multiple individuals, thereby increasing the likelihood of a health insurance claim in a particular policy year. |
Family Floater or Individual Health Insurance - Which is Better?
If you are wondering which is the better health insurance policy - an individual health insurance plan or a family health insurance plan, then the answer is that both plans have their own pros and cons. It is your own distinct health insurance requirements and expectations that are instrumental to which plan you must opt for.
If you want medical insurance for your entire family under one plan, then it is prudent to go for a family floater health insurance policy. On the contrary, if you are looking for a health insurance policy for yourself, then you must consider an individual health insurance policy.
At Tata AIG, we offer excellent discounts on our Family Floater Health Insurance Plan. You can get a 20 per discount on your health insurance premium if you include two family members under the coverage of this plan. What is more, is that the discount keeps increasing as you increase the number of family members covered by the plan. There will be a 28 per cent discount on the premium if you include 3 family members under the coverage of the plan and a 32 per cent discount if you include more than 3 members.
If you are weighing family floater vs individual health insurance for your parents, then it is advisable to opt for the latter. The rationale behind this selection is that there are several health insurance requirements unique to the elderly, which necessitate a separate health insurance policy for your parents.
To Sum It Up
Irrespective of the type of health insurance policy you opt for, it is important to keep your health insurance needs at the forefront of the selection. You must ensure that you compare health insurance plans not only on the basis of their premium but also on parameters such as coverage, renewability, No-claim Bonus, etc.
You can check out our health insurance policies on our official website. Stay healthy and choose well!
Disclaimer / TnC
Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.
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