Once you have made up your mind to secure your health with an insurance policy, then the next big leap is deciding which policy to adopt. Will you go for an individual health insurance policy or a family floater health insurance policy? It is necessary to weigh the pros and cons of both so that your medical and financial needs are utilized in a judicious manner. Read on to make a quick decision of which is best suited for you.
Individual Health Insurance
Individual Health Insurance is where you have to take individual policies for each family member; individual members of the family are insured against the entire amount separately.
Pros of Individual Health Insurance
- The policy can extend to nearest family members like parents and in-laws
- The policy works best for older families where health risk is more
- The policy does not put any age restriction on members for renewal
- The policy allows to avail benefits of loading and discount until it lapses
Cons of Individual Health Insurance
- The policy is expensive for a healthy family with low health risk
Family Floater Health Insurance
Family Floater Health Insurance is where your entire family is covered against the policy and the amount is shared together by all. The policy generally covers two adults and two children.
Pros of Family Floater Health Insurance
- The policy is cheaper than Individual Health Insurance, as you get a higher cover for a lower cost.
- The policy works well for families who have a low health risk
- Your entire nuclear family can be covered under one policy
- If only one claim is used in a year, then the family member gets far greater amount than on an individual health insurance policy.
- The premium paid for family floater insurance can benefit from tax deductions.
- Cashless treatment is also offered by some insurance companies for family floater health insurance.
Cons of Family Floater Health Insurance
- If more than one claim is used in the family then other family members will be left with very little cash coverage.
- Only your immediate family members can be covered, your parents or siblings cannot be covered.
- The policy is valid till the eldest family member or the proposer reaches the maximum age of renewability
- Pre-existing diseases are sometimes not covered under family floater health insurance.
Considering these facts, opting for a family floater health insurance will be a more economical and practical decision for your small family. But if any of one family member has a high risk of any fatal diseases or illness, it is best to use an individual health insurance plan because in the long run, there might be only very little amount left to cover the rest of the family. Hence, think of all the pros and cons of an individual health insurance plan and family floater health insurance plan and consult with your insurance advisor and financial advisor and make a wise decision to secure your family financially and medically.