Individual Vs Family Health Insurance: What is the Difference?
In today’s times, life has become unpredictable, with health scares and medical emergencies at every corner. To combat such uncertainties, you can rely on health insurance that provides financial assistance during distressing times. However, with various options available in the market, it can be challenging to pick the right health insurance. This article will look at two popular choices: individual and family health insurance.What is an individual health insurance plan?
An individual health plan offers coverage that extends to a single individual and does not include other members of the family. You can opt for separate individual plans for all your family members. This type of insurance works best if you have senior citizen parents you want to safeguard. This is so because senior citizens’ costs tend to be higher, and a separate plan can cater to their specific needs. Plus, individual health plans also offer tax benefits that can be a huge financial boon.What is a family health insurance plan?
A family health plan, also known as a family floater health insurance plan, provides comprehensive coverage that extends to you and your family. The premium and sum insured are shared between all the family members. Such plans benefit all the family members and are especially useful in paying off expensive hospital bills, especially in cases where more than one family member needs coverage. A family floater health insurance plan can cover you, your spouse, your dependent children, parents, and parents–in–law. Do note that there may be an age limit for children covered under the plan; generally insurers allow children to be covered from the age of 90 days up to 25 years.Family plan vs individual plan: how are they different?
Apart from the coverage offered, the two types of medical insurance plans have their pros and cons. When it comes to an individual plan, the most significant advantage is that the coverage is extensive since all family members have a plan of their own. If you have senior citizens or patients suffering from critical illnesses within your family, this plan seems most suitable. However, a disadvantage is purchasing multiple policies, keeping track of them, and paying the premiums.
On the other hand, a huge benefit with a family floater plan is that the entire family is covered under one plan, making paying the premiums cost–effective. However, a downside is that the sum insured might not be enough to cover all the family members if needed. Thus, it seems like a viable option for those who live with smaller families.
You must choose an insurance plan that meets your family’s needs and is manageable for you financially. When you are purchasing a health insurance plan, keep an eye on the add–ons offered and look at the cashless hospital network. It helps to have a network hospital close to home so that getting treatment is easier. Also, check the terms and conditions laid down by the health insurance company and choose a policy wisely.Disclaimer: The above information is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale.