Family Insurance Vs Individual Health Insurance Plan

Affordable Health Insurance Ohio

When it comes to purchasing health insurance or browsing an insurer’s website, you will first have to decide whether to get an individual or family plan. The first and foremost point is to understand the differences. Before we go any further, it’s vital to grasp the distinction between individual and family floater plans at an Affordable Health Insurance Ohio.

Individual Coverage

Individual coverage means that the policy is only issued in the name of one person. As a result, depending on the number of family members to be covered, you’ll need to obtain different insurance for each family member. In this instance, the policy will provide a designated sum assured to each family member.

Affordable Health Insurance Ohio

Family Floater Coverage

All family members are protected under a single policy in the case of a family floater coverage. Unlike individual policies, which have a designated sum assured, this policy has a single “floater” sum assured all family members share that. 

For example, if a spouse and one child have a family floater insurance with a sum promised of Rs. All three members of the family share three lacs, the money assured. That means the insurer’s maximum obligation to the entire family for a given year (regardless of which individual is hospitalized).

Additional Distinction Between a Family Floater and a Personal 

Mediclaim Policy

To summarize all of the preceding points, below is a quick comparison between Family Floater Policies vs. Individual Mediclaim Plans, while looking forward to an affordable health insurance Ohio:

  • Coverage – The primary insured, their spouse, and two dependent children, i.e., insured individuals under the floater plan, are usually covered under a family floater policy. On the other hand, some insurance companies will cover parents, siblings, in-laws, and three or four children. An individual health insurance coverage, as the name implies, will only cover one person.
  • Sum Insured- A family floater policy covers the entire family for a single sum insured. Any, among the insured members, can use the whole coverage amount. It will continue to fade as long as a member submits a claim. As different from individual health plans, the sum covered is not limited to a particular person. When one member makes a claim (under a personal health plan), the sum covered by the other members is not affected.
  • Premium – Premiums for family floater insurance are calculated based on the age of the oldest insured family member. Because individual health insurance coverage is only available to one person, premiums are calculated based on that person’s age. For younger families, family floater policies are usually a more economical choice. Individual policies may be a preferable option if the eldest member has a medical problem or sickness.

Individual And Family Floater Plans: A Detailed Analysis

Here, listed few more detailed analysis which makes them stand out from each other and make our decision easy while selecting an affordable health insurance Ohio:

  1. In a family floater, the premium is calculated based on the plan’s senior member.
  1. Only up to a specific age did the insurers offer renewals. If a senior citizen is insured through a family floater plan and exceeds the maximum renewal, none of the remaining family members can continue the insurance.
  1. When children are insured by a family floater and then switch to individual plans when they reach adulthood, they lose the credit for waiting periods and other expenses.
  1. In the event of a family floater, if one member claims, the entire No Claim Bonus (NCB) for the year is canceled. The effect is particularly evident in the case of modern healthcare advances, where you can obtain up to 50% or even 100% of your sum assured as NCB for a claim-free year.
  1. In a family floater plan, there is a wide range of relationships. In most cases, only children and dependent parents are protected, so if you want to cover your grandfather or in-laws, you’ll have to look into a different plan for them.

Conclusion

Premium should not be the sole consideration when picking between an individual and a family floater. Regulations have blurred the distinction between individual and family floater plans. However, it may be a better approach to cover young family members in a family floater and look into individual specialized covers for high-risk or older family members.

Read More: Everything About Health Insurance Plans

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