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Individual Health Insurance Vs Family Floater Health Insurance
While many people understand the importance of investing in a health insurance plan, many do not know whether to invest in an individual or a family floater policy. Individual health insurance plans provide separate cover for each family member, whereas a family floater plan offers a shared sum insured for all members. So, let’s look at the differences between the two to help you decide which plan suits your needs.
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- Individual Health Insurance Vs Family Floater Plan
What is Individual Health Insurance?
Individual health insurance is a mediclaim policy that provides health coverage specifically for a single individual. This policy is purchased independently and offers financial protection against various medical expenses, including hospitalization, doctor consultations, surgeries, and other healthcare costs, up to the specified sum insured.
Unlike family health plans, where coverage is shared, each family member must purchase a separate individual mediclaim policy to receive coverage.
What is Family Floater Health Insurance?
A family floater health insurance policy provides medical coverage for an entire family under a single plan. Instead of purchasing separate policies for each family member, this plan allows the family to share a single sum insured on a "floater" basis, assuming that not everyone will fall sick at the same time.
Under these plans, any insured family member can utilise the coverage amount as and when needed, up to the total sum insured limit. Moreover, the premiums of family floater health plans are generally lower than purchasing individual health insurance policies for each family member.
Difference Between Individual and Family Floater Health Insurance
The key differences between individual and family floater health insurance plans are tabulated below:
| Basis of Difference | Individual Health Insurance | Family Floater Health Insurance |
| Coverage | Individual health insurance provides coverage for a single person. | Family floater health insurance provides coverage for the entire family under one policy. |
| Sum Insured | The sum insured is dedicated to one person and cannot be shared. | The sum insured is shared among all family members covered under the policy. |
| Premium | The premium is calculated based on the age and health condition of one individual. | The premium is determined by the age of the eldest family member and covers all members. |
| Cost-effectiveness | It can be more expensive for families since each member requires a separate policy. | It is more economical for families because a single policy covers multiple family members. |
| Claim Process | Only the insured individual can claim the benefits. | Any family member covered under the policy can claim benefits as long as the sum insured is available. |
| Suitable for | It is suitable for individuals who want personalised medical coverage. | It is ideal for families seeking affordable and shared health coverage. |
Advantages of Individual Health Insurance Plan
Check out the benefits of buying an individual mediclaim insurance plan:
- Personalised Coverage for Every Member: Health insurance plans for individual are specifically created to address the unique health requirements of one person. For example, if you have Pre-existing Diseases (PED) and need higher coverage, you can choose a plan that provides extra benefits to meet your needs.
- Exclusive Coverage Amount: In individual plans, the entire sum insured is dedicated to just one person only, unlike a family floater plan, in which all the family members share a single sum insured on a floater basis. This means the full coverage amount in individual health plan is reserved for your medical expenses and not shared with anyone else.
- No Worries About Insufficient Coverage: Unlike family floater plans, where one member using a large portion of the sum insured can leave less amount for others, individual plans guarantee full coverage for each insured person. This ensures you have access to healthcare as and when you need it without any compromise.
- Tax Benefits: If you have invested in an individual health insurance policy, then the premium paid on that policy is eligible for tax deduction of up to ₹25,000 under Section 80D of the Income Tax Act, 1961.
Advantages of Family Floater Health Insurance Plan
Here are the advantages of investing in a family floater mediclaim plan:
- Cost Efficiency: Family floater health insurance covers multiple family members under a single plan, often at a lower cost than buying individual plans for each member. Instead of paying premiums for each individual, a single premium covers everyone, making it more affordable.
- Single Policy for the Entire Family: With a family floater plan, you just have to manage only one policy rather than several different individual policies for each family member. This simplifies paperwork and renewal processes, reducing the hassle of tracking multiple policies.
- Flexibility in Coverage: While individual health plans are designed for one person, a family floater plan covers all family members, including children, spouses, and parents. This flexibility is beneficial when you want to insure all the family members under a single mediclaim insurance policy.
- Tax Benefits: You can easily avail tax benefits for your family floater health insurance policy as it is eligible for tax deduction under Section 80D of the Income Tax Act. In fact, if you have purchased the policy for your parents who are older than 60 years, then you can double the tax benefit by claiming a tax deduction of up to ₹50,000.
Which is Better – Individual Vs Family Floater Health Insurance?
When deciding between individual and family floater medical insurance, it is important to consider your and your family’s needs. As an individual health insurance plan covers one person, it is a good choice if you want a dedicated sum insured just for yourself or if your family members have different healthcare needs.
On the other hand, buying a family floater plan can be cost-effective and works well if family members are generally healthy and unlikely to need medical care simultaneously.
Make sure you assess factors like the age and health conditions of your family members, the coverage you need, and your budget before opting for a mediclaim plan.
FAQs
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Q1. Which is better, family floater or individual plan?
Ans: A family floater plan is usually more cost-effective for families as it covers all members under one policy but provides a single sum insured for the entire family. On the other hand, individual policies offer separate coverage for each family member but can be more expensive. So, make sure you analyse your and your family's needs before choosing a plan. -
Q2. What is the entry age for family floater health insurance?
Ans: The entry age for family floater policies is 18 years for adults and 90 days for dependent children. However, the exact eligibility can vary depending on the mediclaim insurance plan. -
Q3. How is the family floater premium calculated?
Ans: The premium for a family floater policy is generally based on the age and health profile of the eldest member of the family.
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**All savings and online discounts are provided by insurers as per IRDAI approved insurance plans. #Tax Benefits are subject to changes in tax laws. GST Exemptions depend on fulfilment of qualification criteria and submission of relevant documents.
*₹1748/month is the starting price for a 1 crore health insurance for an 18-year-old male, with no pre-existing diseases. Discount on renewal premium is subject to the number of wellness points earned in the health insurance policy. For more details about the plans, please read the sale brochure carefully to get upto 100% discount on renewal premium.
*₹400/month is the starting price for ₹ 5 lakh Health insurance for a 30 year old male & 29 years old female, living in Delhi with no pre-existing diseases
*₹541/month is the starting price for ₹ 10 lakh Health insurance for a 30 year old male & 29 years old female, living in Delhi with no pre-existing diseases
*₹762/month is the starting price for ₹ 1 Crore Health insurance for a 30 year old male & 29 years old female, living in Delhi with no pre-existing diseases
*₹243/month(₹ 8/day) is the starting price for a 5 lakh health insurance for a 20-year-old male, non-smoker, living in Bengaluru with no pre-existing diseases
*₹2020/month is the starting price for ₹ 1 Cr Health insurance for a 50 year old male & 50 years old female, living in Bangalore with no pre-existing diseases rounded off to nearest 10.
*₹390/month (₹13 per day) is starting price for 1 cr. Health insurance for 25 years old male, with pre-existing diseases, residing from tier 1 city rounded off to the nearest 10.
*No medical tests are required unless requested by the insurer’s underwriter. In-case of pre-existing diseases relevant medical proof would be required as per the terms and condition of the policy opted.
*The values taken for effective cost calculation are indicative values and may change as per the selected plan.
*Coverage upto double the amount of Sum Insured is available on certain covers for a minimum plan of Rs. 5 Lakh on the first claim only to an individual of upto 45 years of age with no pre-existing diseases. The benefit is available with or without extra cost depending on the plan chosen.
*Coverage of pre-existing diseases is provided by insurer as per their underwriting policy.
*The scope of coverage may vary from plan to plan.
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