Health insurance is definitely a must on your life plan. One should begin with the background research. The very first step in this direction is to decide if you want an insurance plan for your entire family or just for yourself.
Individual and family floater insurance plans are both indemnity plans. This means that the insurance plan will reimburse the actual expenses incurred during a medical emergency or hospitalisation.
In order to make a decision, it is important to know the difference between the two.
Individual Health Insurance
The individual health insurance plan is dedicated to only the individual seeking that plan and it will cover the medical expenses of only that particular individual. The plan will not cover your entire family. Instead, you will have to purchase one plan for each member.
This plan is best suggested if your parents are too old and are already suffering from ailments. This is because the health expenses are likely to grow twofold after a particular age. You can also avail this plan if you are looking for a plan only for yourself.
The major advantage of this plan is that it is a lot more extensive in its scope of covering the expenses of a medical emergency. This plan is generally suggested for larger families and those with the elderly in their homes.
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Family Floater Health Insurance
This plan covers the entire family under one umbrella. The total sum of cover and the premium amount is shared by all the members of the family registered in this plan.
Family floater plans are more in demand in the Indian context. This is because, India is a developing nation wherein large numbers of families are restricted by their families but are aware of the need to have themselves medically covered.
Therefore, this plan is chosen because it is cost-effective and caters to the needs of all the members of the family. It is best to opt for a family floater plan if you are a young couple or are a nuclear family with one or two children.
Even though it is cost-effective, the only disadvantage attached with it is, the cover will be exhausted for all the members if one of the members uses the entire sum insured.
Which one to choose?
Your choice of insurance plan depends on your financial condition, pocket size, number of family members and the health conditions of your family members. It is better to purchase the individual plan if you are in a financially stronger position.
Also, if one of the members or you have a family history of a disease or ailment, an individual health insurance plan is always a better option. On the other hand, if you are young and still settling down or have smaller children then the family floater plan is deemed to be fit.