How to Select Between Individual and Family Mediclaim Policy?
Selecting a health insurance can be a daunting task. With so many different insurance providers, policies, and their features and benefits, things can get very confusing for most of the people. While you can now easily search for the policies online, it is better if you first understand the factors that can help you make the right decision. And one of the most important ones is selecting between an individual and a family floater mediclaim policy.
Every insurance provider in India offers its health insurance policies in these two variants. Both of them have their advantages and disadvantages which you should know to make the right decision. Let us start with first understanding the difference between the two.
Difference between Individual and Family Floater Health Policy
An individual policy, as the name suggests, is issued to a single person. So, if you want to buy health insurance for your entire family and want to go the individual policy way, you’ll have to buy a separate policy for every family member. With this, every family member will have their own sum assured.
With a family floater mediclaim insurance, all the members of your family are covered under a single policy. Unlike the individual variant where every family member will have a dedicated sum assured, family floater plans have a single floater coverage which is shared by all the family members.
So for instance, if you have a family cover of Rs. 5 lakhs, your insurance provider would only carry a maximum liability of Rs. 5 lakhs for a year irrespective of who in your family gets hospitalized.
Analysing Individual and Family Floater Mediclaim policy
When an individual and a family floater policy was analyzed in the past, the individual variant used to offer a number of benefits. However, in the year 2013, the IRDAI made a number of changes in the Health Insurance Regulations to bridge the gap between these policy variants.
Rather than the advantages and disadvantages, it is now mostly about which type of policy proves cheaper to you and the features they offer. Let us have a look at what proves cheaper.
Premium for Individual and Family Floater Plans
If we compare individual vs. family floater health insurance plans in India, a family floater plan usually proves to be cheaper than buying individual policies for every family member. Moreover, with individual policies, you need to manage multiple policies, their premium, renewal dates, etc.
Also, if you have a minor in your family, you cannot buy an individual policy for him/her, and the only option you have is to buy a family floater plan.
Selecting the Right Option
While family floater proves cheaper, it certainly isn’t the best option for you and your family in every case. There are several different ways in which you can work out the health plans to ensure that you get the best cover for all the members of your family.
For instance, if you have kids in your family, you’ll surely have to go for the family floater option. But if you are prone to a particular illness, you can buy an individual cover for yourself and a separate family floater for other family members. Similarly, if you have old parents, you can cover them under individual policies and buy a separate family floater for all other family members.
This approach would ensure that you get the best coverage for all the family members while still saving a lot of money which you’d have spent otherwise if you had opted for an individual policy for every family member.
With the rising healthcare costs in India, a health insurance is one of the best ways to protect the health of your family and your financial condition at the same time. When selecting between individual and family floater plans, consider the annual premium, features of the policy, and understand the needs of your family to make the best decision.