Should You Buy Family Health Insurance Floater Or Individual Plans For Each Family Member?

Should You Buy Family Health Insurance Floater Or Individual Plans For Each Family Member?

In today’s times, it is necessary that you secure your family’s access to healthcare by purchasing health insurance. This will help you and your loved ones access good quality treatment without worrying about the expenses. When purchasing, you might come across two main types of health insurance – family health insurance floater policy and individual health insurance. Now, the question arises, which one would be suitable for your family? Let’s explore the answer to that question in this article. 

The type of policy you require depends on the coverage your family needs 

Different families have different health needs. Even within a family, the diversity in the age, lifestyle, occupations, and past medical history of the various family members leave them at risk for different health disorders. That is why it is important to look at the coverage each member of your family requires before you opt for any one kind of health insurance. Let’s consider two scenarios to understand this better. 

In the first scenario, a family of five has two individuals who tend to get sick often and require hospitalisation frequently. Here, a family health insurance that covers all the five members may not be a wise choice. In family health plans, the covered members are under a single sum insured. Frequent claims by the two members of the family may lead to a depleted sum insured for the rest of the family members. It would be a wise idea to buy a separate health insurance policy for certain family members that tend to get sick often.  

Now, consider a family of three, consisting of a newly -married couple and their new-born child. Unless any of them are specifically suffering from any serious condition, a family health insurance policy that covers all three would be an apt choice. 

Other factors you can consider when deciding whether to opt for family health insurance or individual plans 

1. The size of the family 

If you are the breadwinner of a large family, then you may consider opting for a family health insurance plan. Managing multiple policies, paying their premiums, renewing each policy every year, and so on is a difficult task. 

2. Your health insurance budget

If you are looking to insure the health of your family within a stipulated budget, then you may want to go with a family health insurance plan. The premium for a group plan covering four members would be much lesser than the accumulated premium for four different individual health insurance policies. 

3. The NCB 

If there is no claim raised on a policy during a year, the policyholder gets a discount on the next premium. This small discount called as the NCB increases with each consecutive claim-free year. The chances of you receiving the NCB are higher in an individual health insurance policy as the frequency of raising claims is usually lesser here as compared to a family plan. 

4. The age of your children 

The maximum age limit for dependent children under family health insurance plans differs from insurer to insurer. It is usually in the range of 18-25 years. So, if your dependent children are nearing the maximum age limit for them under the plan, then you may want to consider purchasing an individual health insurance policy for them. 

So, as is evident from the above, the health insurance policy you choose for your policy is dependent on several factors. Understanding your family’s needs is the first step towards getting the right plan for them.