What is Family Floater and Individual Health Insurance?

We all give importance to our family and they are more special and close to us. Keeping families health on priority we decides to buy a health insurance. And if you are purchasing health insurance for the first time you need to understand

  • What is family floater health insurance?
  • What is Individual health insurance?

What is a family floater health insurance?

Here, Lets assume we are a family of four. And we wanted to secure our self with health insurance.

An Insurance company, I mean their sales experts or executive will offer us a plan which will have a single sum insured amount. Let’s say 5 lac. So the proposed sum insured amount will be one for all the members.

Which means any of those 4 members can use total amount or can be used partially.

In short, we can say, One sum insured amount for the total family members to utilize for a health risk is called family floater health insurance.

Let’s understand this with an example,

Suppose, XYZ person bought a family floater policy for 3 members ( Self + Spouse and Child). Which is also called as 2A+1C ( 2 adults + 1 child). Assume sum insured to be 5 lac.

If in case self need to get admit in hospital he can used that 5 lac completely or can used partially.

Case 1: Self got admitted in hospital his total bill is 5 lac. He can use total amount.

Case 2: Self got admitted to the hospital his total bill is 2.5 lac he can use that amount from 5 lac. Now 2.5 lac remains in his floater plan. If now any of the 3 members got admitted in the hospital then can utilize remaining SI.

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Case 3: Suppose any of the 3 members totally used their 5 lac SI. As per case 1 as now already SI amount is exhausted we will not get the claim.

Pros:

  • Less premium
  • Can include family members in a single health policy.

Cons:

  • A single sum insured is available for all family members. So if any case any of the members use total or partial Sum insured from the policy. For remaining members Sum Insured value may remain less or none sometimes.

What is Individual Health Insurance?

If you want to cover a single person in the family you can still buy a policy. A health insurance policy with a separate sum insured for an individual is called Individual Health Insurance.

Can we purchase Individual health insurance for family?

Some health insurance companies like “Bajaj Allianz General Insurance company” provide individual health insurance for the family. In individual health insurance, each member of the family will have their own coverage. Means sum insured amount will be separate for each member in a single policy.

Unlike in family floater health insurance, Where a single sum insured was available for all family members. Here it is available individually for all family members.

Let’s understand it again with the previous example, XYZ purchases individual health insurance for 3 members.

Case 1: Self got admitted in hospital his total bill is 5 lac. He can use total amount. Similar to family floater policy.

Case 2: Self got admitted to the hospital his total bill is 2.5 lac he can use that amount from 5 lac. Now here he has used 2.5 lac from his separate coverage. So If any of the other member got admitted in the hospital then can utilize their own Sum insured amount and without affecting remaining SI of self or any member.

Case 3: Suppose As per case 1 as now already SI amount is exhausted by self, Only he will not get the claim. As other members have their separate cover amount then can utilize it.

Pros :

Each member is covered with separate sum insured amount.

Cons :

Premium will be high as each member is getting separate cover.

Difference between Family floater and Individual health insurance?

Family Floater :

  • This policy can be purchased for a minimum 2 members
  • Single sum insured value is available for all members
  • The premium value is less

Individual health policy:

  • This policy can be purchased for 1 member or more than one members
  • Each member have their separate sum insured value
  • More premium value in comparison to the floater health insurance

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