Family Floater vs Individual Health Insurance

Every health insurance company offers two types of plans: individual health insurance and family health insurance. The main difference between these two types is that in family health insurance health coverage is provided to the entire family under a single health insurance plan. Whereas individual health insurance provides health coverage only to a dedicated individual.

We have commonly heard the phrase "health is wealth". But, usually, we do not pay attention to the meaning of this idiom. And as we know, the cost of medical treatment is increasing daily due to high inflation in the country. Hence, health insurance has become a necessity for everyone.

Now, let us discuss the pros, cons, and coverage benefits of these two types of plan variants:

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What is an Individual Health Insurance Plan?

Individual health insurance is a type of health insurance that provides health coverage to a single individual only. This means you have to buy a separate health plan for each family member.

This type of plan is best for those who work in high-risk jobs such as construction workers, stuntmen, etc., or those with a history of serious medical conditions. Individual health insurance provides you comprehensive health insurance coverage, and you don’t have to share the sum insured amount with your family members.

Individual health insurance provides tax benefits under section 80D of the income tax act on the annual premium paid for your policy.

What is Family Health Insurance Plan?

A family health plan is a type of health insurance that offers health coverage to the entire family (up to 6 family members) under a single health insurance plan. The total sum insured amount will be shared between all the covered family members.

Indian families frequently experience financial stress due to the rising cost of healthcare treatment. A family floater health insurance plan can be a wise decision under these situations from both financial and health standpoint.

For example, Ram has a family health insurance of INR 4 lakh and a family of four members. In case of a medical emergency, any one member of the family can utilize the entire sum amount of INR 4 lakh or all the four members can use the sum amount whichever is required to stay within the limit of the sum insured i.e. INR 4 Lakh.

Individual Health Insurance Vs Family Health Insurance Plans

There are various differences between individual health insurance and family health insurance plans. To make you understand easily, we have made a table that shows the difference between individual health plans and family floater health plans:

Comparison	Individual Health Insurance	Family Health Insurance
Definition	Individual health insurance is a type of health plan in which health insurance is offered to only one individual. This means that the sum insured is only dedicated to one person and cannot be shared.	Family health insurance is a type of health plan in which you and your family members are covered under a single health insurance policy. This means the sum insured will be shared among all the family members in the plan.
Coverage	Individual health plan offers health coverage to a single individual.	A family floater health plan offers health coverage to all family members (up to 6 members) under a single health insurance plan.
Benefits	The coverage benefits under individual health insurance plans are much more extensive because every individual has their own sum insured amount.	A family floater plan is much more cost-effective than an individual health plan, as you have to pay a single premium amount for health cover for all family members.
Disadvantages	The only disadvantage of individual health insurance is that it is slightly more expensive than a family health plan as it provides health coverage to only one individual.	The major disadvantage of a family health plan is that the sum insured amount may not be enough for all covered family members.
Example	Ram chooses to buy an Individual Health Insurance plan for himself and his father. He bought an individual plan each of SI INR 5 lakhs. This means both father and son will get INR 5 lakhs as a health cover for their health needs throughout the policy term.	A family health insurance plan is chosen by a couple with two children; under this plan, the total sum amount is split among all four family members. For example, if they buy a family health plan with a SI of 5 lakh, they can only use up to the SI amount for their health claims during a policy term.
Preferred Choice	An individual health insurance plan is recommended for people who have large families or who have senior parents.	A family health insurance plan is recommended for a young couple or small and nuclear families.
Tips & Recommendations	If you are buying an individual health insurance plan for parents, make sure to select the appropriate add-on riders for such as AYUSH treatment.	If you are buying a family floater plan, always buy a plan offering a higher sum insured amount as it will provide enough coverage for all the family members.

Conclusion

Only premium should not be considered when deciding between the two options, i.e. family health insurance and individual health insurance. Family floater insurance covers the entire family under a single policy, whereas individual insurance covers only one person. The best strategy would be to focus on getting the most out of both policies by covering every member of the family. Research more about the health policy, then decide which is best for you and your family.

Disclaimer: The information published in this article is for the reader′s reference only. The content of this information is to provide an overview of your health insurance needs and should not be relied upon for personal, medical, legal, or financial decisions; you should consult an appropriate professional for specific advice. The Company makes no representations about the suitability, reliability, timeliness, and accuracy of the information, services, or any other items mentioned on this subject for any purpose whatsoever.