While buying a health insurance plan. One will have to choose between a Family Floater health insurance and an individual health insurance. The main difference between the two is easily visible in their definition. Advantages, Disadvantages and Family Floater vs Individual Health Insurance is will be explained here.
Individual coverage
In the case of individual coverage, only on a persons name the policy can be issue. Therefore, for all family members who intend to take insurance. One will need to purchase separate policies based on the number of family members. In such a case, each family member will have a dedicated amount insured according to the policy.
Family Floater Health Insurance
In the case of a Family Floater Health Insurance, all family members are included in a single policy. Unlike individual policies in which there is a dedicated insured amount. Here there is a single insured “floater” amount that is shared among all family members.
Importance of Health insurance
Health insurance is important because
- Lifestyle disorders are common these days
- Healthcare is becoming more and more expensive
- It is difficult for a family to quickly arrange the huge sums of money needed for treatment
- Most of a family’s savings come in the form of fixed assets, which cannot be liquidated quickly
Advantages of Family Health Insurance
Coverage for the whole family
Family health insurance plans cover all family members in one plan. You can cover yourself, your husband, dependent children, dependent parents and even dependent parents. In fact, there are some plans that allow you to cover your extended family. So, family health insurance plans are a unique health insurance solution for all members of your family. They also provide health insurance for parents who need affordable medical coverage.
The first are affordable
The premium for a family health insurance plan is much cheaper. when we compare the premium paid for individual plans for each family member. Thus as advantages of Family Health Insurance the plan allows affordable coverage and is easier on pockets.
Each covered member has a high coverage
The amount insure under the floater family policy will be in use in full by any member who falls ill. As such, each family member has full access to the insured amount and can benefit from high coverage if you choose an optimal insured level.
Easy Addition of New Member
Family float plans allow you the convenience of adding new family members. If there is a new member in your family (childbirth), you can easily use the mid-term policy coverage, depending on the terms and conditions of this policy. All you have to do is apply to the insurance company, pay an additional premium, and the child would be covered under the policy without any problems.
Get tax benefits
The last and also the most important benefit in health plans for family floats is the fact that they allow you tax benefits. You can enjoy a tax deduction of up to INR 25,000 when you purchase a floater family policy. This deduction increases to INR 50,000 if you are a citizen. Moreover, if you buy a separate Family Floater Health Insurance for parents, you can benefit from an additional deduction of INR 25,000, which increases to INR 50,000 if your parents are elderly.
Therefore, family health insurance plans are an ideal solution for the health insurance needs of your family members. The plan is readily available, covers all members and is accessible. So, invest in a health plan for your family and ensure their health. It is one of the Advantages of Family Health Insurance
Disadvantages of Family Health Insurance
No policy. No coverage
You are only insured under health insurance when you have an active insurance policy. Thus, no policy means that you cannot benefit from any of the coverage mentioned in this policy. This, in turn, means that you need to take money out of your pocket in an emergency related to the health of your candidates and you as a policyholder. Not having health insurance benefits can lead to financial loss, but also to delayed treatment.
Loss of bonus without claim
Each health insurance company has the right to offer a bonus or a discount to the health insurance premium if you do not file a claim against your policy. This is a no claim bonus. It is largely cumulative in nature and is granted even when you renew your policy during the grace period after the policy expires. However, you may lose the benefits of the reduction and health insurance in full if you fail to renew the policy after the grace period has expired. Thus, you will incur a Disadvantages of Family Health Insurance financial loss only for not timely renewal of the health insurance policy.
Renewing an expired policy is costly
As mentioned above, when you do not renew your health insurance policy in time, you must buy a completely new policy. This means that you lose the NCBs, which in turn increases the health insurance premium. You may need to pay more premium than you would if you renewed your policy over time.
Medical check-up
A health insurance company may require you to undergo a detailed medical examination before insuring you. When you continue to renew your policy, a medical check may not be required each time. However, with a low policy, the insurer may want to check your health before issuing a new policy. This process can delay your purchase and you may be exposed to financial losses in the event of a medical emergency.
Increased waiting period
Health insurance policies may require a waiting period to apply against certain medical conditions. These conditions could include some pre-existing illnesses, maternity benefits or other specific medical conditions, depending on the terms of the policy. When you do not renew your policy and do not let it run, the waiting period you have served will not be of any use, because this time you will buy a new health insurance policy. This is because a low policy cannot be renewed and you have to buy a new policy. It is one of the major Disadvantages of Family Health Insurance
Family Floater vs Individual Insurance
With the rising costs of health care, health insurance has become a necessity for everyone to eliminate the uncertainty of paying exorbitant bills – especially private hospitals, if they are admitted. Family vs Individual Health Insurance is a common topic now.
As the names suggest Family Floater vs Individual Insurance, individual options are for single people, and options for the family float are for people with families. However, in Family vs Individual Health Insurance, individual plans can be shared for several people and insurance companies also offer discounts on membership policies.
Eligible members
Within the individual option, a person can include the spouse, children, as well as parents and other family members, while in the family float, a person can add his dependent and dependent family members, including dependent children. A person can add any of his parents to the family float as the second adult, but the first will become older.
Insurance coverage
In the case of an individual policy, each member has a separate insured amount (SI), which may not be equal for each member, but the SI of the other members may not exceed the bidder’s SI. For example, there are four members in a common individual policy. If the bidder’s SI is 2 lakh, the SI of other members may be less than or equal to Rs 2 lakh. So any member in part or more than one joint member can use SI in a policy year.
If a person wants to take a certain amount of coverage for their spouse and children. Taking a family float would be cheaper. Taking the same amount of coverage separately under an individual health insurance policy. However, if a person wants to add their parent as a second member. The common individual policy may come cheaper. Than a family floating plan, as the first is calculated on the age of the oldest member.
Renewal of Health Insurance
Check things to do before renewing health insurance here.
You know about active coverage
You should be aware of the coverage you currently have. This will be useful to complete the next step in knowing your requirements. Knowing your current coverage also reduces your chances of rejecting your application and you are better prepared in an emergency.
Know your current requirements
Your requirements may change over time. For example, you may not have thought about buying maternity benefits when you were not married. But in this renewal, you can consider maternity coverage. Thus, update your policy according to your needs.
Compare policies
Buying an online policy helps you compare available coverage and choose the one that best suits your requirements and budget. This would be a time consuming process if you decide to buy the policy from an agent. Thus, take full advantage of this benefit and compare various policies in the same category before finalizing with the best one.
FAQs Regarding Family vs. Individual Health Insurance: Which One is Better?
In the case of individual coverage, only on a persons name the policy can be issue. Therefore, for all family members who intend to take insurance. One will need to purchase separate policies based on the number of family members.
Family Floater is a single policy that takes care of the hospitalization expenses of the whole family. The policy has a single insured amount, which can be used by any / all insured persons in any proportion or amount subject to the maximum total limit of the insured policy amount.
What do you mean by pre-existing condition in health insurance policy?
It is a medical condition that existed before you obtained the health insurance policy and is significant because the insurance companies do not cover such pre-existing conditions within 48 months from the date of the first policy.
Editor’s Note| Family vs. Individual Health Insurance
In order to dispel any general misconceptions about the adequacy of healthcare coverage in COVID-19 cases, IRDAI has taught safety net providers to recognize COVID-19 cases in dynamic healthcare strategies. Because the danger of COVID-19 is not currently estimated in dynamic articles, these cases can cause additional weight on the reserve plan books whenever they are rewarded outside government medical clinics.
