The world has combated the coronavirus outbreak, yet many factors and elements exist to affect one’s health negatively. These factors are stressful routines, pollution, junk food consumption and an idle lifestyle. So, people have an awareness of availing a health insurance plan.
But what to choose between family floater vs individual health insurance? Go through this entire blog to know deeply about family floater or individual health insurance, which is better.
What Is the Difference Between Individual and Floater Insurance?
A group insurance plan is any personal life insurance plan bought by an employer for his employees.
Coverage: Family floater health insurance plan covers the employee's family and dependents like spouse, children or parents to the same plan.
On the contrary, individual health insurance plans offer medical coverage only to the person insured (or policyholder). For the family members, you need to purchase the policy separately.
Flexibility: In the family floater plan, there is less flexibility as compared to that of an individual health insurance plan. If one family member uses up the maximum amount of the sum insured, then the coverage for other members may be affected.
Whereas, each insured person gets adequate and separate coverage in the case of the individual health plan making it more flexible in utilising the sum insured.
Price: Coming to the price of the two health policies, may differ depending on the number of family members.
Buying the family floater insurance plan will be a budget-friendly option as it will cover many family members in the same plan. While the multiple individual health policies for every family member will be a more expensive option.
Premium: The premium amount for the family floater plan is calculated on the basis of the age and health condition of the oldest member in the family, thereby determining the family risk. The premium remains the same throughout the plan.
On the other hand, the premium cost for an individual health insurance plan is determined by the age and health condition of the person insured. The premium may differ from person to person depending on the risk profile of the individual.
Are Family Floater Plans Cost-Effective Compared to Individual Health Insurance Policies?
Talking about the premium cost of individual vs family floater health insurance plans, you need to pay more premiums for a family floater plan than for an individual health plan as it covers more people. But you have to pay less per person as the sum insured is distributed between all the covered members.
You can go for the best family floater health insurance plan after going through its terms and conditions and reviewing its comparative features.
Advantages of Individual Health Insurance vs Family Floater Plan
Family floater plan offers many advantages:
Comprehensive coverage for the entire family
Cost- effectiveness
Flexibility
No waiting period
Convenience and stability
Sharing of the sum insured among family members
No claim bonus benefit and cashless treatment
What Are the Disadvantages of the Family Floater Mediclaim Policy?
Apart from the benefits, there are disadvantages of the family floater plan:
Limited sum insured
Employer’s discretion
Higher expense of premium
Due to these disadvantages, some individuals prefer to go for an individual health insurance plan even after having a family floater plan. If a family member exhausts a certain amount of the sum insured, then the other members will not get the coverage until the next renewal.
Can I Convert a Family Floater Plan to an Individual Health Insurance Plan?
Yes, you can convert your group family floater plan to an individual health insurance policy. For this, you need to consult your insurer first and tell them the correct details of your family members to be included in the policy. Then, fill out the necessary forms to go ahead with the process.
