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Family Floater or Individual Health Plans - Things to Consider While Choosing a Policy

Even before the world was grappling with the coronavirus outbreak, there were many factors that could affect your health negatively or cause illnesses. Some such factors are stressful schedules, sedentary lifestyle, pollution, and consumption of junk foods. While advanced medical facilities have made it possible to fight many ailments, the cost of treatments has skyrocketed. In such situations, health insurance can come in extremely handy. But, people may find it difficult to decide whether to opt for individual health insurance or  family health insurance. So, read on to find out what would suit your needs the suitable.

Family Floater versus Individual Plans

As the names clearly suggest, a family floater plan is meant for the whole family, while the individual plan is for a single person. A family health insurance is comprehensive and protects your family financially when any member under the ambit of the policy is hospitalized.

  • While each member of your family can opt for separate individual plans, in a family floater, you get the luxury to insure your entire immediate family under one single plan.

  • This plan covers the in-patient treatment cost incurred due to an accident or illness, your pre-hospitalization costs incurred up to 60 days prior to hospitalization, emergency ambulance services, expenses incurred up to 180 days post-discharge, and also maternity expenses.

  • If your plan mentions it, you can also get reimbursed for organ donor treatment.

In case of individual plans, you need to get a separate one for each family member.

  • Some people are more vulnerable to diseases than others due to their age, or pre-existing ailment, or nature of work, in which case, taking an individual health insurance might be helpful.

  • So, if your chance of getting sick is more, you will get a health insurance with bigger coverage. Since the sum insured is meant for one person in an individual plan, it could benefit you more than a floater plan.

  • Also, customized plans are available for different individuals, with the option of getting ‘add on’ coverage.   

How much coverage do you need?

There is no one answer to that. You have to analyse your unique situation to figure out the coverage you need. However, there are some factors you should consider while deciding how much health insurance you really need:

Age: With age, the chances of developing health issues increase. So, you might need a bigger coverage, but remember that your premium amount will be higher too.

Medical history: If your family members have suffered from serious hereditary illnesses or you if you have a pre-existing disease, the coverage should be wider.

Profession and location: Yes, the nature of your work also decides the plan you should opt for. If you are working in an industry where chances of developing a chronic disease are more, you should take coverage for those ailments in advance. Take accidental cover if your work involves frequent travel. Similarly, if you live in a place where the cost of treatment is higher, you must have a bigger coverage.

Discount and upgrades:  There are other discounts too. For instance, the family floater plans give a discount if you opt for plans for more than one year, or additional discount if the family type is selected as ‘individual’. Also, you can always take advantage of top-ups to increase your coverage by paying a little extra.

However, remember that the bigger the size of your coverage, the more will be the premium. Therefore, think of your budget when taking a plan, as sometimes, reimbursements can take time.

Which is the suitable fit for you?

Your health insurance premium will be low if you opt for a family floater policy, as both the premium and the total sum insured are shared among the family members. For example, if your floater plan comes with Rs. 5 lakh cover, and any family member gets hospitalized, the entire amount of Rs. 5 lakh can be used. If the amount is less than that, the remaining money can be used by other family members during a different medical emergency. If the whole sum insured is used, the others will be left with nothing to use. So, family health insurance is beneficial and more suitable for couples and nuclear families. While a floater plan is cost-effective and offers more flexibility in an insurance claim, individual health insurance plans offer more extensive coverage as the whole sum insured is for one person only.

All in all, both plans have their own advantages and disadvantages. So, you have to look for one that provides coverage to everyone in your family while giving maximum benefits.  

Conclusion There is no denying the fact that health insurance is essential these days, if you want to protect yourself against ever-increasing medical costs. It can reduce your worries during medical emergencies too. Plus, you will get the suitable treatment possible and can also avail tax rebate*. However, it’s important to understand your unique requirements and terms and conditions of the plan before you pick between family floater health insurance and individual health insurance. Choose from HDFC ERGO health insurance plans to secure your future.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales. UID No. D2HI760 *T&C apply. Subject to change in tax laws. UIN my:health Suraksha HDFHLIP20049V041920 

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