Individual Health Insurance vs Family Floater Plan
Are you looking for health insurance but can not decide between individual and family floater plans? While both plans offer excellent benefits and health coverage, it is important to know which plan suits your coverage needs.
Let us dive deeper to understand these plans. We will discuss the difference between individual plans and family floaters and their benefits.
What is Individual Health Insurance?
Individual health insurance is a policy that provides health coverage specifically to a single individual. The policy offers financial support to cover healthcare expenses, such as hospitalisation, doctor consultations, prescription medicines and surgeries.
What is the Family Floater Plan?
A family floater plan is a health insurance that provides coverage for the entire family under a single plan. Instead of getting different policies for each family member, the family health insurance policy allows all family members to share the sum insured amount on a floater basis. Here, floater basis means assuming not all family members will fall ill at the same time.
In a family floater plan, any insured family member can use the coverage as or when required up to the total sum insured limit. Moreover, family floaters are considered cheaper than paying separate premiums for each family member, as is the case with an individual plan.
[Read About: Do You Need to Buy Travel Insurance to Visit Switzerland ]
Family Floater Vs Individual Health Insurance
| Basis | Family Floater Plan | Individual Health Insurance |
| Policy Coverage | Provides coverage to the entire family under one plan. | It only provides coverage to an individual policyholder. |
| Sum Insured | The sum insured amount is shared among all the insured family members. | The sum insured amount is solely dedicated to the insured person. |
| Premium Calculation | The calculation is done based on the eldest member’s age and provides coverage for all. | The calculation is done based on the individual’s age and health condition. |
| Claim Procedure | Any family member can make a claim as long as the insured sum is available. | Only insured individuals are allowed to make a claim. |
| Cost | Family floaters are economical for families as they cover every member under a single plan. | It is more expensive to buy different plans for each family member. |
| Best for | Families looking for affordable health coverage | Individuals looking for personalised health insurance. |
Individual Health Insurance Benefits
- Personalised Coverage: Individual health insurance is beneficial for individuals looking for personalised coverage for their different health needs.
- Exclusive Coverage Amount: The best advantage of individual health insurance is that you get the entire sum insured value to yourself. It provides you with full coverage for your health expenses when required. In a family floater plan, if one family member uses a large portion of the sum insured amount, then other members are left with insufficient coverage.
- Tax Benefits: Individual health insurance allows you to deduct up to ₹25,000 from your income under Section 80D of the Income Tax Act.
Family Floater Plan Benefits
- Full Family Coverage: A family floater plan provides coverage for the entire family under one insurance plan. It reduces the hassle of managing different plans for each member and reduces paperwork.
- Cost Effective: The plan is quite cost-effective compared to the individual plans. Unlike the floater plan, you pay a premium for only one plan rather than multiple premiums for every member’s coverage.
- Coverage Flexibility: The family floater plan provides flexibility in coverage. It includes insurance for spouses, parents and children, and it is designed to meet the different coverage requirements of every family member under one plan.
- Tax Benefits: Buying a family floater also makes you eligible for deduction under Section 80D of the Income Tax Act. Moreover, if this plan is bought for your parents above 60 years of age, then you can claim deductions of up to ₹50,000
Family Floater or Individual Health Insurance: Which Is Better?
Now, you know about individual and family floater plans, the differences between them, and their best benefits. After getting all the information, the only thing left is to make the right choice.
If you are looking for dedicated health insurance for different health needs, then go with individual health insurance. However, if you are looking for more economical insurance options, then a family floater plan is best for you.
In the end, the decision to purchase the best health insurance plan depends on your coverage requirements and insurance budget.
