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Individual or family floater - Which is the best health plan for your family?
Apr 20, 2017 | 950 VIEWS
I would always advise you to take an Individual health insurance policy over a Family Floater policy.

Here’s why I think it is better in the long run.

The biggest benefit that health insurance plans currently provide is one of continuity. Insurance companies start covering pre-existing diseases 3 to 4 years after you have taken the plan. Also companies cannot refuse renewal in case you have been detected with any major illness after the plan has been offered to you. The only case for refusal of renewal is in case of some fraud. So once you buy a health insurance plan, you are guaranteed cover for life. Of course, the cost of the cover increases with age.

Now suppose both husband and wife have been paying for a health insurance plan for the last 15 years. Suppose at the age of 55, one of the elder of the 2 members passes away. The plan stops immediately and the spouse will now have to take a new insurance plan. At this age, chances of existing conditions are very high and you may find yourself not being able to get a health plan at all. Now mind you, this is the time when you really need a health insurance cover and you will not find one being offered to you.

This one reason is sufficient enough to suggest that you take a separate plan for both individuals. It’s a very big loss and retired members without any medical insurance will vouch for how costly it can be at a time when their income also is minimal. Basically, at a time when you most want the cover, you will find yourself stranded.

Also, if one member is making regular claims, the policy will not get any benefit of No-claims bonus which can be quite substantial at higher ages.

Yes, taking a family floater plan will be slightly cheaper and offers greater convenience in terms of administration, but the flip side in my opinion is quite dangerous and hence should be avoided.

So here are my suggestions for some family types:

ALWAYS take separate plans for your parents. Never include them with a young family. Don’t get all emotional here please! In fact, I would strongly recommend a separate plan for each of your parents.

Family type – Husband & Wife wanting a 5 lakhs cover – Take 2 individual plan of Rs. 2 or 3 lakhs each

Family type – Husband, Wife and children wanting a 5 lakhs cover – Take 2 covers. One of 3 lakhs which is a family floater plan for Husband and children and another individual plan of Rs. 2 lakhs for Wife. Please note that children below 18 years cannot be enrolled in an individual plan.

If you want to save on Money and want to get a much larger cover, it is best to go in for a Super Top Up health insurance policy. That way you enjoy a much larger cover but don’t pay the premiums for a single 10 lakhs cover. Check out How Super Top-up Health Insurance plan work.

If you have any questions, drop a comment below or tweet us at MyInsuranceClub and we would be happy to chip in with our thoughts.

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