Point of Comparison
Individual Health Insurance
Family Floater Health Insurance
An individual health insurance is a type of health insurance plan wherein only one person can be covered in each plan. This means, both the health insurance premium and sum insured is dedicated for one person only and cannot be shared.
A family floater health insurance is a type of health insurance plan wherein you and your family members share one plan. This means both your health insurance premium and sum insured would be shared amongst all members in the plan.
This plan only offers coverage to the single individual insured in this plan. For example; If you’ve taken a plan of SI Rs 10 Lakhs, you alone will have up to 10 Lakhs to benefit from, for the entire policy period.
This plan offers coverage to all family members insured in the plan. For example; if your plan SI is Rs 10 lakhs, then the entire family will have to share this amount for the policy period.
The biggest benefit of an individual health insurance plan is that the coverage is a lot more extensive since every individual has their own sum insured, unlike a family floater where the sum insured is shared amongst all insured in the plan. This especially works out well for senior parents.
The biggest benefit of a family floater plan is that the health insurance premium is cost effective, as the premium is a one-time premium for all family members.
The single disadvantage of an Individual Health Insurance is that one will have enough to cover for them in one policy year. Additionally, even if they haven’t claimed during the year, they can benefit from a No Claim Bonus 😊
One of the main disadvantages of a family floater plan is that, the sum insured may not be enough for all family members.
A 30 something working woman chooses to take an Individual Health Insurance plan for herself, and her senior father. She takes an individual plan each of up to SI 5 lakhs. This means, she and her father both will have 5 lakhs each to cover for their health needs throughout the year.
A couple with two kids chooses to go for a family floater health insurance plan; under these all four members will have to share the total sum insured amongst themselves. For instance; if they’ve taken a plan of SI 5 lakhs, then they can only use up to 5 lakhs for all their health claims during the year.
An individual health insurance is highly recommended for bigger families, or those with senior parents as a family floater may not be sufficient.
A family floater health insurance would work well for a young couple or a small and nuclear families.
Tips & Recommendations
If you’re going for an Individual Health Insurance plan, make sure you opt for relevant add-ons for every member too. For example; if you’re taking an individual plan for your parents then the AYUSH add-on would be a recommended add-on to include in your plan.
If you’re going to opt for a family floater plan, then opt for a higher sum insured since you’ll need to make sure that the total sum insured is sufficient for all family members.