Skip to main content

Family floater vs Multiple Individual Health Insurance: Which is a better option?

One benefit of having multiple individual plans for family members is that the sum insured of other members would not be impacted if anyone is admitted to a hospital or takes any other treatment covered by his/her individual plan.

Health insurance is considered the first thing an earning individual should buy, even before starting the investment journey. Why? Because life is uncertain and a sudden health crisis can create a huge upheaval – both financially and emotionally.

A good health insurance plan can help you tide over the crisis smoothly. However, when it comes to buying the right plan, one needs to decide whether multiple individual health policies or a family floater plan is better for him/her.

Unlike the family floater health insurance plan, which can protect you and your family members under a single plan, individual health insurance provides the cover only to a single individual.

For providing health coverage to the family through multiple individual plans, you will have to buy separate policies in the name of each individual. In this case, the premium will depend on the age of the individual and the sum insured. Some insurance company may also provide you a discount on the total premium if buying individual policies for more than one member of the family simultaneously.

Under the family floater policy, more than one member of the family can get health coverage under the same plan. And only one premium would have to be paid. Generally, the premium is on the basis of the eldest member in a family floater policy.

One benefit of having multiple individual plans for family members is that the sum insured of other members would not be impacted if anyone is admitted to a hospital or takes any other treatment covered by his/her individual plan.

In contrast, all members can avail entire sum insured in a family floater policy. This means that full health coverage would not be possible if more than one member has to be admitted to a hospital simultaneously.

Which is better?

According to Deepak Yohannan, CEO, MyInsuranceClub, having multiple individual plans would be better in terms of coverage. However, this would cost more in terms of the premium paid.

Family floater policy is cost-effective as it provides cover to multiple members of a family and takes advantage of the fact that several members are unlikely to take the benefit of health coverage at once. But if a claim is made, it would be difficult to get the cover amount enhanced.

“Having multiple individual policies is surely better from a cover perspective. Family floater plans are definitely more cost-effective in case there are no claims. But once a member makes a claim, the cost of the whole family floater policy will go up. In Individual plans, only the plan making the claim will get impacted and not the other ones. And once you have made a claim, you might find it difficult to make enhancements in the cover amount – the cost of medical facilities can rise substantially in a period of 10 years,” Yohannan told FE Online.

“So, if you can afford it, take separate individual plans. If cost is a major factor while taking the plan, go with family floater plans,” he added.

One should choose any of the two health insurance options depending on his/her need. For instance, if someone’s income is less and he has small children then a family floater policy would be better. But in case any member of your family has a history of bad health conditions, then buying individual policies would be more helpful as the cost of treatment may be very high.


Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.


Popular posts from this blog

Four little-known motor insurance add-ons that are critical for vehicle owners

The increasing cases of road accidents , thefts, normal wear and tear, have pushed people to invest in motor insurance covers to safeguard their vehicles. A motor insurance policy provides protection against any loss or damage caused to the vehicle and its insured accessories as a result of natural or man-made calamities. In India, the Motor Vehicles Act of 1988 makes it mandatory to have a motor cover. Nonetheless, there are certain damage expenses that your regular motor insurance might not cover. For instance, suppose a specific part of your car needs to be changed, the final bill includes not only the cost of the spare part but also the additional labour charges for installing the item. Considering such situations, insurance companies came with a range of add-ons to give enhanced coverage for your vehicle, in addition to your base motor policy. While popular add-ons such as engine protection cover, zero depreciation, return to invoice are quite known to the people, there are other

11 reasons your motor insurance claim can be rejected

Recently, after a motorcycle accident in which the rider lost his life, the insurance company rejected the claim because it was a 346 cc bike. Apparently, as per the policy terms and conditions, the company was not liable to pay if the bike capacity was more than 150 cc. While this could be a case of misselling where the owner was not fully informed about the policy by the agent, there are various others reasons that claims can be denied. Typically car and two-wheeler owners do not read the poli .. Ignorance about policy & add-on covers: A common reason for claim rejection and people’s grouse is that some specific damages are not covered under the policy and one needs to buy separate add-on covers for these. “For instance, engine damage or depreciation losses are not covered in the basic policy and you need separate engine protector and zero depreciation add-on covers for these,” says Tarun Mathur, CBO, Commercial use of vehicle: If you have bought a car for pers

6 ways to save on car insurance in 2021

  People are driving again. An analysis published by Apple shows that mobility is significantly up in the US since last year, when the COVID-19 lockdown was much firmer. With the school year in full swing and many employees returning to the office, a lot of people are traveling and driving more. Though some insurance carriers reduced premiums and offered discounts during the height of the pandemic, according to the Insurance Information Institute, as the world slowly returns to normal, some experts are forecasting an auto insurance cost spike. If you're driving more, your auto insurance premium might be increasing. But there are plenty of ways to keep your money in your pocket. Here's an overview of ways to mitigate increasing insurance costs. 1. Increase your deductible  Increasing your deductible can lower your premium, meaning when you make a claim you'll increase the amount you have to pay out of pocket before your insurance plan starts to pay out. This move could cost