How Individual Health Insurance Plans Are Better Than Family Floater Plans?
Updated On Dec 09, 2020
Health is a vital element for everyone, be it an individual or a family. Being healthy we can live a peaceful life and can lead our path to prosperity and success. However, the way to eminence is never easy, thus, gaining fitness and constantly maintaining good health should always walk parallel. It is crucial as our lives are uncertain and unpredictable, where only a health insurance plan can assist in mitigating this uncertainty up to some extent.
Health insurance can be bought in the form of individual health insurance policies and family health plans. These policies basically differ in terms of the coverage provided. Under Individual health plans, only one person gets the coverage, whereas, under the family health insurance policy, the entire family including parents and in-laws get covered under a single policy. Here are some reasons that explain as to how individual Health insurance plans can sometimes fall better than family floater plans.
Suitable Plans
One of the biggest advantages of opting for an individual health plan is that policyholders under it get to choose the one, which fits their budget and requirement. People can even search for a policy especially according to their specific requirements. This kind of flexibility is not available with group health insurance policies or family floater plans.
Coverage Amount
When someone purchases a health insurance plan on an individual basis, his or her coverage amount is availed solely by him or her. But, under a family floater policy, it gets distributed among other family members. It is a great aspect for those who fall ill frequently and their treatment is prolonged that can’t be compromised on financial grounds.
Premium
When it comes to a family floater plan, the insurance provider takes into account the highest risk by a member. So, family floaters can turn out to be costly affairs if you have high-risk individuals like senior citizens or those with existing diseases. In such cases, an individual health policy may turn out to be a better and cheaper option.
Benefits
Most of the individual health insurance plans offer rewards, discounts and other sorts of benefits. When it is applicable for an individual plan, more benefit can be earned, while with the family policy where multiple members of the family are available, it gets declined. Hence, owning an individual health insurance plan can make you earn more benefits and rewards in person.
Tax Benefits
When it comes to tax benefits, everybody tries to earn that in different manners. An individual, he or she can save tax by owning an individual health insurance plan also and get deductions under section 80D. A person doesn’t a family every time to gain tax benefits. Under this, the premium paid for an individual plan is deducted from the taxable income, thereby lessening the tax liabilities. Covering parents or senior citizens can enhance this benefit.
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Conclusion
These are some points that define how individual plans can be a better choice than a family floater plan. Thus, it shows that everyone should hold a health insurance policy either with family or without any family. People can update their schemes later when they get a family, but having an individual policy is any less beneficial than holding a family benefit should never be an option.
