Family Health Insurance Plan vs Individual: Which One is Better?
An individual health insurance scheme or a family health insurance policy comes with its benefits. You should decide which one is suitable for you depending on the requirements. In individual schemes, you are required to purchase separate policies for every family member. It can be significantly costlier than family floater plans. In such policies, a single premium is collected, and it provides coverage for all the family members.
The main differences between these two policy types are described below.
- Coverage
Coverage in case of a family health insurance scheme is generally extended to primary insured individuals, their spouse, and two dependent children. In some cases, the policy may even extend to parents and siblings dependent on a provider. On the other hand, in the case of an individual health insurance plan, coverage is extended to only the primary insured.
Health Insurance schemes from reputed NBFC like Bajaj Finserv offers coverage options ranging from Rs. 2 Lakhs to Rs. 50 Lakhs.
- Sum insured
A family health scheme insures an entire family under one sum insured. Every member of a family is eligible to avail a coverage amount. This amount will gradually decrease if an individual makes a claim. However, in the case of an individual health insurance policy, the sum insured can be availed only by a primary insured.
- Premium
Premium amount in case of family insurance schemes depends massively on the age of the family members. However, in individual policies, the factors affecting the premiums is only the age of a primary insured.
Furthermore, family insurance schemes are generally less expensive than individual policies. Also, if a family member crosses the age limit to renew a policy, the entire family will not be able to carry the scheme forward.
Family floater plans are ideal to insure a family under an entire policy. However, if the eldest member of a family is nearing the age limit, it is advisable to avail an individual health insurance policy for every member.
