Difference Between an Individual and a Family Floater Health Insurance

Breaking Down the Difference between Individual and Family Floater Health Insurance

Maintaining good health is essential for an individual as well as a family. Rising medical inflation has made it nearly impossible to manage the expenses of doctor visits, hospitalization, and medical costs in today’s uncertain times. The need for financial protection against medical emergencies is paramount as health treatment costs are continuously on the rise, and a health emergency can strike at any time and affect people of all ages. This is why health insurance is required.

While purchasing a health insurance policy, you need to decide if whether you should choose individual health insurance or family floating health insurance on a needs basis. The quantum of coverage depends on the number of members insured under the policy. This article provides in-depth information about family floater vs individual health insurance plans, their benefits, cost-effectiveness, etc.

To help you choose better, you need to know how each works!  

Individual Health Insurance  

An Individual Health Insurance Plan offers cover for a single member up to the limit of Sum Insured. It doesn’t require sharing with any of the other family members, as is the case with Floater Plans. This plan is suitable for those individuals who need adequate coverage. 

Star Health offers a Medi Classic insurance policy and an exclusive individual health insurance plan. Individual plan options are also available in other policies provided by Star Health, such as the Star Comprehensive Insurance Policy, the Star Women Care Insurance Policy, the Star Health Assure Insurance Policy, the Super Surplus, and so on.

Advantages of Individual Mediclaim Insurance Plan:

Check out the advantages of an individual mediclaim insurance plan:

• Personalised coverage for every individual: Individual health plans are specially crafted to address the unique health needs of an individual.
• No Worries about insufficient coverage: Unlike a floater plan, where one person using a large portion of the sum insured can leave less for others among the insured family members, individual plans guarantee full coverage for each insured person.
• Exclusive coverage amount: Theentire sum insured of an individual plan is dedicated just to one person only. In contrast, the floater cover's meaning reveals compromises among family members under a single umbrella.
• Tax Benefits: In case you have invested in individual insurance, then premiums paid on that plan are eligible for a tax deduction of up to INR 25000 under Section 80D of the Income Tax.

How is the Premium calculated for an Individual Health Insurance?

The Premium for Individual Health Insurance is calculated based on the insured's age, the Sum insured opted for, and the area/location of the individual.

Family Floater Health Insurance 

A Family Floater Health Insurance Plan is an umbrella plan under which all family members are covered under a single Sum Insured. In addition, floater meaning in health insurance defines where a single, larger sum insured is shared among all family members covered under one policy. It is a flexible plan that allows any insured family member to use the coverage amount in the event of a medical emergency. However, if any one member has utilised the entire Sum Insured, the others are left with no coverage.

Family Health Optima Insurance Plan is an exclusive floater Health Insurance plan offered by Star Health. The option of Floater is also available in Star Health’s other Health Insurance plans, such as Star Comprehensive, Young Star, Star Health Premier, Star Health Assure, and so on.

Family Floater Health Insurance Meaning

What is family floater health insurance? Let's understand the family floater health insurance meaning here. A health insurance plan for a family means that it extends the insurance coverage to the whole family rather than just an individual. It permits you to offer coverage for your spouse, children, parents, and also for siblings under a single policy. The family floater health insurance policy has a fixed sum insured and provides insurance coverage to your family members below a certain age. The health insurance company meets the health care or medical expenses of the whole family instead of the yearly premium paid by you.

What is a Floater Cover in health insurance?

You may ask: What is a Floater Cover in health insurance? A floater cover refers to a single policy that covers an entire family with one larger, shared sum insured. Instead of paying for individual policies, the family pays a single premium, and any member can use the total sum insured for medical expenses up to the policy limit. This makes it a cost-effective way to provide comprehensive coverage for multiple family members, including spouse, children, and sometimes dependent parents. Apart from this, the Family Floater's meaning reveals how it works.

Advantages of Family Floater Health Insurance Plan

Here are the advantages of investing in a floater health insurance plan for the family:

• Single Policy for the Entire Family: With a floater plan, you just need to manage one single policy, in contrast to multiple individual policies for each member of the family.
• Cost Efficiency: Family floater meaning it only reflects that it covers multiple members of the family under a single plan, often at a lower cost as compared to buying individual plans for every member.
• Coverage Flexibility: While individual health plans are designed for an individual, floater plans for family cover all family members, including children, spouses, and parents. This reflects the flexibility of this plan, which ensures all members of the family are under a single health policy.
• Tax Benefits: You can easily avail tax benefits for your family insurance plan, as it is eligible for tax deduction under Section 80D of the Income Tax Act.

However, despite of unprecedented advantages of floater health plans, one must also review the disadvantages of a family floater mediclaim policy.

How to calculate Premium for a Family Floater Health Insurance?

We have seen the floater health insurance policy's meaning, including its advantages and relevance for individuals who are seeking whole family coverage under a single plan. Now, we shall focus on how its premium can be calculated. 

The Premium for this a Family Floater Health insurance is calculated based on the age of the eldest family member, family size, and the area/location where the family resides.  

What is Better- Individual Vs Family Floater Medical Insurance?

When deciding between an individual and family floater mediclaim policy, it is important to consider your’s and your family’s needs. An individual medclaim plan covers an individual, and it is good for adequate health coverage if you want a dedicated sum insured for yourself or in case your family members have different healthcare needs.

On the other hand, the family floater sum insured meaning emphasizes its cost-effectiveness, and it works well if your family members are generally healthy and unlikely to need medical care altogether.

Factors to be considered while choosing between the Individual and Family Floater Health Insurance  plans

While the Premium amount varies between both policies, it should not be the only thing to consider! You must also consider the following factors while choosing a medical insurance policy : 

• Determine your requirements, list the benefits and costs of both plans and make decisions.
• You can cover yourself in a Family Floater plan or buy an Individual plan exclusively.
• Besides, while opting for a floater policy and including your parents, who may be more prone to illness and hospitalisation due to their age, going for a higher Sum Insured is always suggested.

Family Floater vs. Individual Health Insurance in a Nutshell

Here’s the detailed comparison of Family floater vs. individual health plan, including what is floater policy in health insurance vs an individual insurance, their coverage, mid-term inclusions, add-ons, and more. 

Why is individual health insurance needed ?

Health insurance is important to safeguard against increasing medical or health care costs, providing financial safety during unexpected medical emergencies. It offers coverage for hospitalization, treatments, etc, thus ensuring that individuals and families receive quality care without financial strain.

Why is family floater health insurance needed ? 

We have gone through: what is floater health insurance? Now, we shall discuss why it is needed.  A family floater plan is needed because it offers affordable and all-in-one health insurance coverage for your loved ones. It also ensures proper access and timely access to medical care when it matters the most.   

Conclusion

Before purchasing the policy, factors like the number of family members, age and health risks should be considered. Choose a policy that best serves your needs, whether an individual or a Floater plan.

Star Health Insurance offers various health insurance plans, available individually and as a family floater. For more details, refer to the policy clauses of the policies.