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Family Health Insurance or Individual Health Plans – What to Choose?

When it comes to health insurance , there is no one-size-fits-all approach that you can take. However, insurance plans can be broadly divided into family health insuranceand individual health insurancetypes, which have their own pros and cons. So, what might be the most optimal option for you and your family? A comprehensive family policy or a handpicked individual plan based on each family member’s needs?

Let us begin by understanding these two policies and the advantages they offer -

What is Family Health Insurance Plans?

A family health insurance plan is all about securing your family’s collective health and future under the cover of a single comprehensive plan,which collates the average factors and covers all family members. This insurance is mostly a generic one since it does not require any customization based on each and every member.

There is a fixed sum assured by the policy,whichis fluidly spread over all the members in the family. For instance, if the family health insurance offers an assured sum of Rs. 3 lakh, the maximum liability is for that amount, and can be used for any family member.

Usually, family plans are limited to the spouse, children and dependent parents. In certain cases, it can extend to siblings as well.

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What is Individual Health Insurance Plans?

As the name suggests, individual health insurance is named after one particular member of the family. It can be tailored as per their requirement and the amount secured here can only be used by that concerned family member. Individual health plans will have a dedicated sum assured for individual members under the policy.

This plan is usually a better idea when bought at a young age when the premium is relatively low and there is a chance to get a bonus amount in the future. Individual health insurance can also make routine healthcare affordable and also cover the expenses of critical illnesses that the particular family member suffers from.

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Which to choose between the two?

There are certain things that you must keep in mind while choosing theses plans.

1. Marital Status

Marital status also determines the type of health insurance policy one should take up. In many cases, married people end up going for the all inclusive family health insurance that offers overall benefits.

However, in case of more insurance freedom, many couples, with no family yet, also tend to choose individual health insurance. This can be due to different requirements or maybe they are covered under their respective corporate insurances that do not allow them to club their plans with that of their spouse.

2. Based on Requirement

Buying health insurance also depends on the requirement of the family and its members. Based on their lifestyle and any ongoing medical condition, they can compare family vs. individual health insurance and then choose the right one

Many policyholders have healthy families that do not require tailor-made policies to cater to their health requirements. For such cases, a family health plan is an economic and sufficient choice.

However, in certain cases, family members require extra and frequent medical attention which might mandate regular hospital visits and bills. For them, individual health plans are the right way to go.

3. Age is a factor too

In case of a family insurance policy, the premium of the plan is based upon the senior-most member of the family. The amount offered is capped and if any senior member requires the capital for treatment and uses this policy, the other members cannot use the policy for their treatments.

In case of individual plans, it is more flexible since each member has their own plan. The senior members of the family will have their own customized plans while the younger members will be subject to other plans, most probably at a lower premium rate.

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Family Health Insurance vs. Individual Health Insurance – my:health Suraksha At a Glance

Factors

Individual Health Insurance

Family Floater Health Insurance

Definition

We cover only one person and the entire amount insured is dedicated to their treatment, with no scope to share it.

It covers you and your family less than one single amount. The plan is shared among the family members and has a capped amount, which when crossed, cannot be utilized by any other member.

Coverage

As the name suggests, the amount covered in this case is solely meant for the individual holder. Rs. 4 lakh insurance is usually available for the policyholder.

This insurance has single amount coverage, say Rs. 10 lakh. This amount can be used by the entire family, with no set amount for each member. He/she can use any amount upto Rs.10 lakh.

Advantages

An individual health is more personalized and suited to fit the custom needs of the policyholder, with no sharing involved. This is a great plan for either senior parents or those battling critical illnesses.

This insurance policy is very cost-effective and comprehensive, and the one-time premium payment ensures the wellbeing of the entire family.

Disadvantages

This might not exactly be a very cost-effective plan since it is customized according to particular preferences.

On certain occasions, one family member might deplete the entire amount, leaving no coverage for others in times of emergencies.

^Multiple sum insured options ranging from 1 Lac to Rs 5 Cr available under this policy

Conclusion

Choosing between a family health insurance plan and individual health insurance plan does not have to be an arduous task. You can buy HDFC ERGO health insurance after consulting our experts, to simplify your approach.Our experts will explain the different policies in detail and help you determine the right plan that can be beneficial for you and your family.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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This blog has been written by Diwaker Asthana Health Insurance industry experience of 20 Years

Diwaker Asthana recommends buying my:health Suraksha Insurance to get the benefit of a wide range of coverage that the plan offers.For some unique benefits like cashless home health care and in-patient treatment for mental illness,he believes this plan will benefit customers in the long run.



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