Difference Between Individual and Family Floater Health Insurance

With the rising medical costs and the sedentary lifestyle we tend to live in, buying a health insurance policy is mandatory. In today’s times, insuring your health with a health insurance is a must as it can compensate you at the time of hospitalization. When purchasing health insurance, one often gets confused between choosing an individual health insurance or family floater insurance. For you to make the right choice, it is important you understand the difference between the both.

What is individual health insurance?

An individual health insurance is a type of health plan that provides coverage to only one individual. This means it covers you separately and does not provide any coverage to your family members. The premium for this type of plan has to be paid separately as only one person is covered. The sum assured for this

What is family floater health insurance?

This is a type of health insurance plan that covers all members of the family under one umbrella. All the members of the family can utilize the sum assured under this type of plan and premiums are not to be paid separately.

Difference between individual and family floater insurance

• Premium: In terms of premium, individual health insurance demands a high premium than a family floater plan. Family floater plan covering 4 individuals can cost you less premium in comparison to securing 4 individuals with separate plans. For example: If you are a 50-year old individual having no pre-existing diseases, then a family floater plan with a coverage of 6 lakh can cost you premium of around Rs. 20,000. Whereas, if you buy an individual policy with the same coverage, then it would cost you a premium of Rs. 9000. Hence, a family floater seems to be a better option than an individual health plan. Under a family health plan, you can cover your spouse as well as kids and extend the coverage to parents as well as in laws. It is important to note that the premium of a family floater plan is decided on the basis of the age of the eldest member of the family.
   
• Renewal: Family floater health plans cannot be renewed after the senior most member covered under the plan attains the age of 65. But individual health insurance plans can be renewed lifelong.
• Coverage: In terms of coverage, individual health insurance plan only covers the policyholder, whereas, under a family health plan, you can extend the coverage to your spouse, kids, parents as well as the in laws. Also, under a family health plan, children up to the age of 21-25 are only covered.
   
• Customization: You can extend the benefit of your individual health insurance plan by opting for riders such as critical illness cover, maternity cover, hospital cash benefit, etc. However, with family floater plans, you do not get the option of customization.

• Sum assured: If you purchase a family health plan and use the full sum assured, then the total coverage of your plan exhausts and the other members are not eligible to receive any coverage. But the case with individual health plan is different and does not affect the coverage offered to other members.

Advantages of Individual health insurance plan:

• With individual health insurance, you get to enjoy cashless claim benefit
• The policyholder can use the entire sum assured.
• You are eligible to receive tax benefits under section 80D of the Income Tax Act, 1961.

Advantages of Family health insurance

• Premium paid is eligible for tax benefits as per section 80D of the income tax act. You can avail tax benefits of 25,000 for yourself and Rs. 30,000 if any senior citizens are a part of the plan
• Usually, a family floater health plan has a high sum assured than an individual health plan
• The coverage can be extended to parents as well as in laws.
• This plan ensures you have greater medical coverage and provides the same benefits as that of an individual health insurance policy
• Certain parameters or features of family floater plan let you enjoy discounts and incentives.