Difference Between an Individual and a Family Floater Health Insurance
Breaking Down the Difference between Individual and Family Floater Health Insurance
Maintaining good health is essential for an individual as well as a family. Rising medical inflation has made it nearly impossible to manage the expenses of doctor visits, hospitalisation and medicinal costs in today’s uncertain times. The current pandemic has also revealed that a health emergency can strike at a time and affect people of all ages. This is why health insurance is required.
While purchasing a health insurance policy, you need to decide if you should choose individual health insurance or family floating health insurance on a needs basis. The quantum of coverage depends on the number of members insured under the policy.
To help you choose better, you need to know how each works!
Individual Health Insurance
An Individual Health Insurance Plan offers cover for a single member up to the limit of Sum Insured. The Individual Health Insurance Plan makes one individual the beneficiary of the chosen Sum Insured. It doesn’t require sharing with any of the other family members, as is the case with Floater Plans. This plan is suitable for those individuals who need adequate coverage.
Star Health offers a Medi Classic insurance policy and an exclusive individual health insurance plan. Individual plan options are also available in other policies provided by Star Health, such as the Star Comprehensive Insurance Policy, the Star Women Care Insurance Policy, the Star Health Assure Insurance Policy, the Super Surplus, and so on.
How is the Premium calculated for an Individual Health Insurance?
The Premium for Individual Health Insurance is calculated based on the insured's age, the Sum insured opted for, and the area/location of the individual.
Family Floater Health Insurance
A Family Floater Health Insurance Plan is an umbrella plan under which all family members are covered under a single Sum Insured. It is a flexible plan that allows any insured family member to use the coverage amount in the event of a medical emergency. However, if any one member has utilised the entire Sum Insured, the others are left with no coverage.
Family Health Optima Insurance Plan is an exclusive floater Health Insurance plan offered by Star Health. The option of Floater is also available in Star Health’s other Health Insurance plans, such as Star Comprehensive, Young Star, Star Health Premier, Star Health Assure and so on.
How to calculate Premium for a Family Floater Health Insurance?
The Premium for a Family Floater Health Insurance is calculated based on the age of the eldest family member, family size and the area/location where the family resides.
Factors to be considered while choosing between the Individual and Family Floater Health Insurance plans
While the Premium amount varies between both policies, it should not be the only thing to consider! You must also consider the following factors while choosing a medical insurance policy:
- Determine your requirements, list the benefits and costs of both plans and make decisions.
- You can cover yourself in a Family Floater plan or buy an Individual plan exclusively.
- Besides, while opting for a Family Floater Plan and including your parents, who may be more prone to illness and hospitalisation due to their age, going for a higher Sum Insured is always suggested.
Family Floater vs. Individual Health Insurance in a Nutshell
| Details | Individual Health Insurance | Family Floater Health Insurance |
| Definition | It is an insurance plan where only one person is covered. This means that the Sum Insured is exclusive to the Insured individual and cannot be shared. | It is an insurance plan that extends coverage to the entire family. This means that all family members would share the Sum Insured. |
| Coverage | This plan offers wider coverage to the single individual who has a dedicated Sum Insured. | This plan offers coverage to all family members insured in the plan. Here every family member gets benefits under a larger common pool. That is, the Sum Insured is shared amongst all insured in the plan. This plan usually covers the individual, spouse and children. However, some insurers do have provisions to cover dependent parents, siblings and parents-in-law in the plan. |
| Ideal customer | Due to its extensive coverage, it is highly beneficial for bigger families or those with senior parents. | It is recommended for a young couple or a small and a nuclear family. |
| Mid-term inclusion | Mid-term inclusion of a newly married/wedded spouse or newborn baby is possible in an Individual Health Plan. | Mid-term inclusion of a newly married/wedded spouse or newborn baby is also possible in a Family Health Plan. However, children turning 26 years need to shift to an Individual plan and will no longer be covered under the Family Insurance plan. |
| Add-ons | If you are opting for an Individual Health Insurance plan, make sure you opt for relevant add-ons suitable to your requirements. | If you want to opt for a Family Floater plan, then opt for a higher Sum Insured to ensure that the total Sum Insured is sufficient for meeting the needs of the family members. |
Conclusion
Before purchasing the policy, factors like the number of family members, age and health risks should be considered. Choose a policy that best serves your needs, whether an individual or a Floater plan.
Star Health Insurance offers various health insurance plans, available individually and as a family floater. For more details, refer to the policy clauses of the policies.
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