Knowledge Centre

Which Health Insurance Policy To Buy - Individual Or Family ?

There are so many travel and fitness quotes/ descriptions that we read every day on social media platforms, take a screenshot and then forget about them.
Regular investment in health care is a long term asset. We should think about building it for ourselves and our family. A monthly investment that demands regular premium but gives support in life when needed most must be an agenda for living a smooth and peaceful life. Purchasing a health insurance policy can be the next best thing to stay prepared for any inevitable health issues.

Family vs. Individual Health Insurance

There are two types of coverage one can get in the health care insurance policies: 1. Individual plan: This plan covers every member individually. 2. Family Floater plan: As the name suggests, this plan covers the entire family. It includes children/parents or just a couple.

Comparison of both the plans
Individual Health Insurance Family Floater Health Insurance
A single person is covered in a sum insured. Multiple family members are covered under one sum.
Coverage
The sum insured and premium are calculated individually for each member. The sum and premium are shared collectively by the enrolled members.
Advantage This plan is more extensive since it is for an individual. It works best for people with a history of illness or senior parents in the family. The plan is very cost-effective as the insurance premium is paid one-time for all the members. This plan is best for families planning to secure themselves in the event of financial emergencies.
Disadvantage Since this is individual health insurance, so there might be chances of underutilisation of the cover in the particular span. The main disadvantage
is that a family health insurance
Though one can get benefits from No claim bonus as well. Cannot provide sufficient coverage for all the members within the sum insured.
So usually a higher sum is recommended.
This plan is best recommended for senior citizens, entrepreneurs, bachelors, single parents, or basically anyone who’s has dependants to take care of. Family health insurance policy is highly recommended for a nuclear family.
Recommendation
As a person grows older, he/she is more prone to illness. The medical and health check-ups become frequent,
so this policy gives better coverage.
The sum amount can be utilised by all members or any one, whenever needed.
It is not recommended for a joint family, more than 6/7 members until the sum is high.
Tax Redemption Both the plans are covered under tax redemption of Rs.25,000 section 80 D in the Income Tax Act 1961.
Renewable Both plans come with a lifetime renewability.
Other coverage in the plan There are a few other highlights of the plans :
Road Ambulance cost
No Room-Rent Capping
Hospitalisation expenses
Pre and post hospitalisation costs (60 days pre and 180 days post hospitalisation)
Hospital Cash

Being an early bird

In life, early starters always reap the best results.

Warren Buffet made his first investment at the age of 11. Federer started when he was 14 and Sachin Tendulkar at the age of 13.

As they say, early investment and savings are directed towards longevity. Those who look beyond just the present-day requirement can tap on the better investment. And we know there is nothing better than a good investment in your health care policy. Planning for unforeseen circumstances makes the foundation strong.

One of the perks of early enrolment forhealth insurance policy is that one would need to pay a lesser premium on the plan. The insurance for a young person doesn't even require medical screening.

If the insurance plan is enrolled in the later stage of life, like the age of 45 then it would require paying a higher premium.

What will work best for you?

Honestly, no one can evaluate this better than you.

The way we plan our vacation, research about the places, look at the best seasons and offers. Big health investment requires the same efforts.

If you are a nuclear family, a family health insurance is best suggested. It would cover your child and spouse. When your children grow up above 18 and funds are still not utilised they can start their policy. The most important thing is that the sum can be utilised by a single person or can be distributed among members as and when needed.

If you have someone in your family who is a senior citizen or a person who is prone to diseases since young age and has often sought medical consultation. The individual health insurance is best recommended for them.

A holistic approach is to cover all the members and get maximum benefits of both the policies by paying a higher premium.

A Good investment ‘Now’ will bring better results for ‘Tomorrow’.

HDFC ERGO brings you the best of both these policies. Give your health care in the best hands, which is ready to act as your shield of protection in any critical time. Read carefully and then evaluate the plans as per your requirement. Enrol for the health insurance that is best suited for you and your family as early as possible and get insured to live confidently.


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