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Individual Health Insurance Vs Family Floater Mediclaim

October 30, 2018
The importance of maintaining good health is known to all. Similar to this is the importance of health insurance that can keep your finances safe and secure in the event of any unforeseen health issue. The benefits of a health insurance plan ensure your monetary edge in times of requirement and also help on securing your family's future. Health insurance covers come in two broad types: the individual health insurance cover for one person) and the joint family floater health insurance cover that provides cover to other family members as well. Often, while deciding on the best choice available, you have to choose either of these two. So, which among these two options is better? The answer depends on a host of factors like your income, whether you can pay a higher premium on enhanced cover, your specific financial goals and the type of employment etc.

Though the aim of both - individual insurance and family floater plan is to provide insurance cover for the benefit of your capital and your family's needs, the basic approach is different. There are certain things that you must keep in mind while choosing theses plans.

Cost factor is one such parameter. For any family where the age gap between the spouses is small, i.e. for a young family, a floater plan is much cheaper than individual cover. This is because instead of premiums for individual cover of one spouse/separately for both spouses, the premium breakup is higher than that for a joint floater plan for the entire family. Thus, on the point of price of the plan, floater plans score higher than individual ones.

One of the primary factors is the cover factor i.e. the health risk coverage provided by the plan. Viewed from this perspective, a family floater plan is definitely better than individual health cover. This is because being cheaper than the individual plan, a floater plan offers better and cheaper coverage for the family.

However, there is another viewpoint also. While in an individual plan each individual has a dedicated sum insured, in a floater plan the insurance cover is shared. This means that if one family member makes a claim, the cover reduces on the rest (by the concurrent amount). If due to any unforeseen circumstances, all the members require usage of the health insurance cover, a floater plan will not be able to offer complete financial protection for everyone. Also, the fact that floater health plans are cheaper than individual health plans becomes irrelevant if the age gap between the two spouses is large. This means that the cost advantage of a family floater insurance plan diminishes if the age gap between the spouses, or the eldest member, is huge. This can also be linked with the fact that a floater plan can become a financial liability in case of one spouse keeping constrant poor health because this poses the risk the entire insurance corpus being used by one person instead of the cover being extended for everyone in the family.

Hence, the key is to consider all these factors and then deciding which plan to choose.

HDFC Life offers several health insurance plans that are aimed at securing your finances and safeguarding the future of your family. For details, click on the mentioned link: https://www.hdfclife.com/health-insurance-plans

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