Now that you have decided to get your whole family insured, are you confused about whether to get individual or family floater health insurance plans for family? This article will provide you with a brief comparison of the two with respect to some important aspects of the insurance market so that you can make an informed decision regarding what’s the best health insurance plans for family in your context:
While individual insurance plans would cover only the particular person concerned, family floater plans cover the whole family. However, the considerations under the category of family change from plan to plan. While in some cases, only the ‘immediate family’ i.e. the spouse and children might be covered, in some other cases, even the parents might come under health insurance coverage.
The limit for the insurance claims in family floater plans can be utilized by anyone in family, but in case of the individual plan, only that specific individual can use the sum. Since, in family floater plans, the sums are higher, it could be an advantage here. However, more than one claim in a year under family floater plans might make things complicated, because here, the risks are tied and divided among everyone’s claims in the same family.
- Premium and Costs
When we consider solely the costs of the health insurance plans for family, family floater health insurance plans triumphs because here you would end up spending less. Thus, the combined premium you would pay for individual insurance plans for your whole family would, in many cases, be much more than one you would have to pay for a family floater insurance policy which covers everyone in the family. Thus, this is a very good option for people on a budget.
However, the cost of the family floater insurance plans depends on the number of members of the family as well as the age of the family members. Thus, while it would be a viable option for some families, it might not be so for others.
- Policy Renewal
In most cases of family floater health insurance plans for family, the plan is subject to renewal only when the oldest member reaches the maximum age for renewability (65 to 70 years). So, this reduces the flexibility afforded to the family in order to reassess and revamp their insurance priorities according to their changing circumstances. Again, when the children covered under the family floater plan reach age 25 years or so, they would have to take fresh separate policy. In case of the death of the senior-most member under the plan, the protocols might be blurry in some of these insurance plans.
Generally speaking, it certainly seems that it is better not to divide risks equally in the entire family, as it happens in case of family floater plans. Because even though the benefits accrued could be bigger, in times of illness or calamity, or even death, the whole family insurance can go under, instead of insurances of healthy and non-healthy members being balanced out against one another as in the case of families with individual insurance plans. Choosing health insurance plans for family thus must be done taking these nuances into consideration.