Medical costs are increasing at a very steep rate; thus any health issue means that one has to be prepared to shell out huge amounts to regain one’s health back. Health is precious for the individual as well as the family. An unwell family member can be a cause of lot of stress and arranging finance to bear the cost of the medical expenditure can add to it. This can be taken care if one has medical insurance that covers the cost of medical expenses that one has to bear. When you decide to buy a medical insurance policy the next question that you are faced with is which policy to buy? Here we compare the family floater with an individual insurance cover to discuss their suitability.
Individual Health Plan: This is an individual health insurance plan and only the applicant is insured which means the entire sum insured is available exclusively to him/her only. Sum insured is the maximum amount that the insurer would pay in a policy year.
Family Floater Plan: This health insurance plan covers all the family members for a fixed sum. It may include spouse and kids; the sum insured is shared among all the family members. Thus if the cover amount is Rs. 6 lakhs then it would be shared amongst the entire family.
Choosing the Right Plan:
Whether one chooses to buy an individual health plan or a family floater plan will depend on the family dynamics. When one buys an individual plan then for each family member (considering there are multiple family members) then each of these plans are independent of each other and claim on one will have no impact whatsoever on the claim of another. However in a family floater plan the insured amount is shared and one or all can claim depending on the situation. If one individual claims the entire amount then other members cannot claim it in the same year.
A family floater plan is a more economic option as compared to buying individual plans for all family members. Earlier the premium was based on the age of the eldest family member but now the pricing is based on multiple incidence rates for all members which makes them even more cost effective. Family floater plans also save the buyer from tracking multiple polices and remembering to renew all of them.
Family floater plans make sense for people who have a family especially kids, as minors cannot have individual polices in their name. However rather than choosing a family plans versus an individual plan the focus must be on features of the plan in question. If there are three generations that need to be covered then it makes senses to buy a separate plan for husband wife and kids and another one in which the parents are covered. This will ensure that all members are covered at the most optimum cost; since elders are more prone to health issue it makes sense to have a separate policy for them. This will also insure that one does not lose out on the No Claim Benefits if there is claim made for one individual’s hospitalization (which is more likely to happen for senior citizens). The age of the children must also be factored in while taking a family floater plan. As they reach the age of 25 they will have to seek a fresh policy in their name and all benefits that have accrued to them will lapse.
A lot of factors go into decision making and choosing the right policy. While most factors like the age of the family members, their health status and number of family members may not be in your control one important factor surely is. Premiums are also affected by the credit rating of the applicant; so knowing how to improve CIBIL Score can help you here. A good score can help you get a better deal on your premium rates. Keep your family and yourself safe by buying the right health cover.
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