You generally have an the option to pick between a Family Floater Health Insurance and an Individual Health Insurance when purchasing a health insurance plan. Here is a comparative analysis that will help you to choose from the two.
|Parameters||Individual Health Insurance||Family Floater health insurance|
|Definition||One person can only be covered under each individual health insurance plan, which is a type of health insurance. This indicates that the health insurance premium and the total amount insured are exclusive to one person and cannot be split.||A sort of health insurance plan called a family floater allows you and your family members to share one policy. This indicates that the cost of your health insurance and the amount insured would be split among all plan participants.|
|Coverage||The only person insured under this policy is the only person for whom coverage is provided. For instance, if you purchased a plan for coverage of Rs. 10 lakhs, you will be the only one to gain from up to 10 lakhs for the duration of the policy.||All family members insured under the policy are covered by this plan. For instance, if your plan's coverage is Rs. 10 lakhs, the entire family will be responsible for paying it during the course of the policy.|
|Benefits||The main advantage of an individual health insurance plan is that the coverage is far more comprehensive than a family floater because each insured person has their own sum insured, as opposed to a family floater where the sum insured is shared by all covered persons under the plan. This benefits elderly parents in particular.||The main advantage of a family floater plan is that the health insurance premium is affordable because it is paid once for the entire family.|
|Limitations||An individual health insurance policy's lone drawback is that the entire burden of premium falls on single indivisual||A family floater plan's biggest drawback is that the total amount insured could not be sufficient to cover everyone in the family.|
|Suitability||For larger families or those with elderly parents, an individual health insurance is strongly advised because a family floater may not be adequate.||A young couple or a tiny, nuclear family would benefit from family health insurance.|
|Add-ons||If you choose an individual health insurance plan, be sure to select the appropriate add-ons for each member as well. For instance, it would be advised to include the AYUSH add-on in your plan if you were purchasing an individual policy for your parents.||If you choose a family floater plan, choose a bigger sum insured since you must ensure that the total sum insured is enough to cover every member of the family.|
|Example||A working lady in her 30s decides to enrol her senior father and herself in an individual health insurance plan. She purchases separate plans for up to coverage of 5 lakhs apiece. This means that she and her father will each get 5 lakhs to meet their annual medical expenses.||Choosing a family floater health insurance plan, a couple with two children will have to split the total amount insured among the four of them. For instance, if they have a coverage of 5 lakh plan, they are only allowed to spend up to 5 lakh on all of their health claims for the entire year.|
The premium should not be the only factor taken into account while deciding between the two options. In essence, family floater insurance protects everyone in the family under a single policy, whereas individual insurance just covers the person. The best strategy would be to focus on getting the most out of both policies by covering every family member. Find out more about both, then decide which is best for you and your family.