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Individual Health Insurance vs. Family Floater Health Insurance

Published On Mar 16, 2022, Updated On Mar 17, 2022

The main difference between the two is that in a family floater health insurance plan, all family members are covered under one plan; this means that both the premium and the total sum insured are shared amongst all family members; whereas in an individual health insurance plan, the health insurance premium and sum insured are dedicated to one person only.

Individual Health Insurance vs. Family Floater Health Insurance

Individual Health Insurance Policy

This type of health insurance is acquired for a specific person, as the name suggests. For example, if you purchase this policy for yourself, you will be the only one who will profit from it. Individual health insurance is your best bet if you work in a high-risk job or have a history of medical issues. The idea is that with individual health insurance, you will be the sole beneficiary of the agreed-upon sum assured, rather than having to divide it with your family as with family floater policies.

Family Floater Health Insurance

In a family floater plan, everyone in the family is covered by a single health insurance policy. It is a flexible plan that allows any member of the family to use the predetermined sum assured in the event of a medical emergency. However, keep in mind that if the full sum assured is needed to care for one family member, others will be left without coverage.

Individual Health Insurance vs. Family Floater Health Insurance: What's the Difference?

It is critical to familiarize yourself with the benefits of both individual and family floater health insurance policies before deciding which one is best for you.

1. Age: When it comes to determining the premium for a health insurance policy, the age of the policyholder is a significant issue. When it comes to private health insurance, just your own age is taken into account. Premiums for family floater insurance are calculated based on the age of the plan's oldest member. As a result, a family floater plan would be more beneficial to a younger family.

2. Premium: Increased insurance premiums are not always a bad thing. However, the majority of us want to maintain rates as low as possible. With family floater plans, you can save money by paying a single premium for a group of people. When compared to individual health insurance coverage, the per person premium, if estimated, would be quite inexpensive.

3. Maturity Age: Children are usually covered in family floater policies, but only until they reach a set age. When your child, who is protected under your family floater health insurance, reaches the age of 18-25, he or she must get their own health insurance policy.

4. Renewability: A health insurance policy is issued for a set period of time, with the option to renew at the policyholder's discretion. Only up to a specific age are these renewals permitted. When a senior citizen is involved in a family floater plan, the insurance becomes ineffective for the rest of the family members when the former reaches the maximum renewal age.

5. No-Claim Bonus: For each claim-free year, this benefit is reflected in a higher sum promised or a lower premium amount charge. Individual plans have a better chance of receiving this incentive because a claim from any family member can cancel this benefit in family floater plans.

Take Away

Between floater and individual health insurance, the best coverage for you is the one that best fits your needs. A preferable method for young couples or those in a nuclear family is to get a family floater plan, which is designed to benefit and cover the most people. Individual health insurance coverage, on the other hand, makes more sense if a family is larger and has numerous senior members.

Also read- Know Why You Should Have Health Insurance Policy During Omicron Variant Outbreak

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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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