Which One is Better Individual Health Insurance and Family Floater Plan?
Updated On Jan 30, 2024
Have you been thinking of investing in a health insurance plan that suits your precise insurance needs to a tee? Is your family’s well-being the foremost concern for you at present?
Is it the choice between individual health insurance and a family floater health insurance plan that’s making you confused? Don’t know which one would prove to be more beneficial in the future?
If unable to make the perfect choice that secures your family’s health in an unmatched way, read along so that you can cover the knowledge gap right away!
Table of Contents
The Difference Between Individual Health Insurance & Family Floater Plan
On investing in individual health care policies, you will get separate insurance for each family member with a defined medical cover. In other words, in individual health insurance, the policy will be issued in the name of one person. Moreover, to get all family members insured, you will have to buy separate policies.
In the case of a family floater plan, all family members will be covered in a single policy. What’s important to note is that the family floater plan will include a single “floater” sum assured, which will be shared between all family members when the need arises. What’s best is that the family floater plan comes across as flexible in terms of utilization of the entire insurance coverage.
Needless to say, both individual health insurance plans and family floater plans are beneficial in their own way, however, when it comes to comparing the two, the advantages offered are quite distinct and the ultimate basis for an ideal choice for those looking for a suitable health insurance plan.
Now that the basic difference between individual health insurance and family floater plans is clear to you, let’s take a look at their benefits that prove to be the deciding factor.
Advantages of Individual Insurance
- Cashless claim service is one of the biggest benefits that one gets with an individual insurance plan. In case of an emergency that requires hospitalization, one can avail of the cashless benefits included in their policy. Take into account that many health insurance providers offer cashless hospitalization that allows one to avail medical facilities or treatment without having to pay for the same to the hospital.
- Many insurance companies provide policyholders with a daily hospitalization allowance for each day spent in the hospital. However, this benefit is applicable only when the insured has spent a minimum number of days (specifically mentioned in the policy) in the hospital.
- You can expect tax benefits in the case of an individual health insurance plan. So, if you have invested in a health insurance policy, the premium paid on that policy will be eligible for tax deduction under Section 80D.
Advantages of Family Floater Plan
- Family floater plan comes with the benefit of the high sum insured and great coverage. Typically, family floater plans provide coverage for individuals, spouses, and kids, but there are also insurance service providers that offer cover for dependent parents, parents-in-law as well as siblings.
- The family floater plan is great in terms of tax benefits. Family floater health insurance policy is eligible for tax benefits under Section 80D. Also, one can double their tax benefits if they are paying for the policy of their parents.
- Under the family floater plan, one can enjoy great medical coverage. Whether it is doctor consultations, hospitalization fees, hospital staff care, expenses related to medical procedures undertaken, ambulance cover, or others, all are included.
- Adding family members is quite easy in a family floater plan.
- Many health insurance providers are now offering the option of two-year policy cover, which in turn, offers one the benefit of continuous coverage without any change in the cost of premium for the tenure selected.
That said, the choice is yours!
Make sure you keep not only the premium but also numerous other points in mind before making the final decision so that your investment in a health insurance plan is worthwhile in every respect.
Also Read:
Individual Vs Family Floater Health Insurance Plan-Which one should you buy?
Why Choose a Family Health Policy Over an Individual Insurance Plan?
