Health Insurance: It is an essential part of human nature to make plans for uncertainties in life; we save and invest money for future contingencies. We plan for our children’s education and try to build a corpus for them so that they can receive a hassle-free education. Individual and family health insurance plans are also an essential part of the overall planning to keep financial distress during health emergencies at bay. Personal health insurance in Ontario is also an essential part of the overall planning to keep financial distress during health emergencies.
Health insurance plans for family and self are highly recommended when the cost of healthcare and treatment is on the rise. You need to be well prepared on the financial front in case of any misfortunes so that you and your loved ones get the necessary healthcare. We witness on the news channels almost daily how due to lack of funds proper health care becomes an issue causing loss of lives.
Fundraising for treatment through the internet is another common phenomenon these days, where family members appeal to the general public to donate for the treatment of loved ones. There are several fundraising platforms online that allow you to post and share your requirements. You don’t want to be in such an uncomfortable position, do you? To avoid such situations, you should look for the best family health insurance plans and individual plans. You should research well before opting for a health insurance plan and decide whether you want to go for a family plan or an individual plan. Our experts have formulated an essential guide for you so that you can make your decision without any confusion.
The Basic Differences You Need to Know
Medical Insurance During COVID-19 What Should You Know
Before we move forward towards delicate details, we need to know the basic differences between an individual health plan and a family floater plan. An individual plan will cover a single person, and sum insured will be available for the claim only when that particular person is suffering from a covered health condition.
On the other hand, health insurance plans for families are issued in the name of the family, with members sharing the total sum assured. This is also known as a family floater plan. For example, imagine a couple with two children decided to go for a family floater plan, and the total sum assured for them is Rs. 5 lakhs. In this case, all the four family members share the total sum assured of Rs. 5 lakhs. The total liability of the insurance company towards the family is 5 lakhs rupees, and the family cannot claim more from the company in case the medical expenses go beyond 5 lakh rupees.
Detailed Differences
We hope that we have given you a proper understanding of the basic difference between an individual and a family floater plan, now let us take you through the differences in detail:
1- Coverage
To give you an example, in a family of four a family floater plan will cover the primary insured member along with the spouse and two insured dependent children. You can also find some of the best family health insurance plans that provide coverage to extended family, including siblings, primary insured persons’ parents, and parents-in-law. On the other hand, an individual health insurance plan will only provide to a single person named in the insurance policy as the “insured”.
2- Sum Insured
In an Individual health insurance policy, the claim upon a policy is the right of the insured person only. They don’t have an option to share it with other members of the family. On the other hand, the sum insured in a floater plan is shared by all the family members. The claimed amount by any family member will be deducted from the total sum. Health insurance plans for family come with a simple sum deduction policy so that there is no confusion about who gets what? And what is left after a claim?
3- Premiums
In an individual plan, the premium is decided on the basis of the insured person’s age. On the other hand, the premium of a family floater plan decided to take into consideration the age of the senior-most family member. If you have a young family, you will find a family floater plan as an economical option. In the event that the senior-most member of the family is suffering from a health condition, it is always better to go for the individual policies.
Advantages
An individual health policy provides substantial coverage because of an individual sum insured. On the other hand, the sum assured in a family floater plan is shared by all the family members. Individual plans will be very beneficial in the case of senior citizens.
On the other hand, health insurance plans for family plans are very economical because of the one-time premium for the entire family.
Disadvantages
The disadvantage of family health insurance plans lies in the shared sum assured, it may not be enough for all the members, especially in times of Covid-19 when there are cases that the whole family is getting hospitalized. In family floater plans, always opt for a higher sum insured to ensure there is adequate coverage for the entire family.
Final Words
If you have a big family with senior family members, you should always go for individual plans to provide sufficient, assured sums for every family member. A big family with senior family members won’t find family floater plans much effective as the sum assured will not be sufficient for everyone. If you are a young couple along with two or more young children, then a family floater plan will be a more suitable option.
An individual health insurance plan will have an option of add-ons; you must make sure that you get the best out of it.
We hope to provide you with the best overview of both individual and family plans for your health insurance hunt. Do check out this article once more before you decide to buy your health insurance.
