Family Health Insurance Vs Family Floater Plan – What’s The Difference?
Health insurance is a very important part of a family?s financial security. Moreover, there are many health insurance plans available for families in the market.
Moreover, the real debate remains the family health insurance vs family floater plan. They both sound almost the same, so a certain confusion arises.
However, they have distinct features and ways of affecting your finances. So it’s necessary that you know about both of them in detail.
Therefore, you must understand the difference between family health insurance and a family floater.
This is very important when you need to make an informed decision before purchasing any health insurance online.
Family Health Insurance Vs Family Floater Plan: Which One Is For You?
The Family Health Insurance Vs Family Floater Plan debate is quite popular. However, both of them are important for your family?s finances.
Therefore, I have compiled a table that highlights the primary differences between these two plans. Let?s take a look:
| Basis | Family Health Insurance | Family Floater Plan |
| Meaning | Family health insurance covers all family members who are insured. | A family floater covers all immediate family members. |
| Premium | It has a higher premium overall, as a larger sum insured covers the whole family. | Has a lower premium as the sum insured is shared among the family members. |
| Flexibility | Less flexibility in terms of using the entire insurance coverage. | More flexibility on the usage of the entire insurance coverage. |
| Benefits | Family insurance is a cost-effective plan that covers all family members. | A family floater plan has an easier threshold for adding family members, such as a spouse and newborn child. |
| Best For | Family insurance is ideal for larger families. It provides comprehensive coverage for all family members under a single policy. | Ideal for a nuclear family as its sum insured would be enough for them. |
| Drawback | Premiums can be higher for higher coverage. | Does not allow for an increase in coverage in case of the addition of a new family member. |
What Is Family Health Insurance?
Family health insurance is a type of policy that provides individual medical coverage for each family member under a single plan.
For this health insurance for a family, the insurer provides financial coverage in exchange for the premium payment received from the policyholder.
Therefore, the coverage usually includes dependent children and a spouse.
What Are The Features Of Family Health Insurance?
These are the important features of a Family Health Insurance plan.
1. Affordable Premiums
Family health insurance plans may have slightly higher premiums due to the separate coverage provided for each insured member.
However, it remains affordable and is also better, as every insured member has their own dedicated coverage for protection against medical emergencies.
2. Customization
This family health insurance is highly customizable in terms of choosing coverage limits for each family member.
Moreover, it means everyone can get coverage tailored to their specific medical needs.
3. Easy Administration
It is easier to handle family health insurance paperwork as all the family members are insured under one plan.
There would be no need to renew everyone?s policy at different times, and making premium payments becomes easier too.
What Is A Family Floater Plan?
A family floater plan is one of those health insurance plans that provides coverage to the entire family under one sum insured.
Therefore, you can say that the plan offers a combined sum insured that any insured family member can utilise.
Moreover, the premium to buy health insurance is calculated based on the age of family members and the size of the family.
What Are The Features Of The Family Floater Plan?
These are the features of a family floater plan.
1. Shared Sum Insured
In a family floater plan, a single sum, that is the insured amount, is what you have to share among the family members.
It means that if one family member has to use more of the sum insured due to medical reasons, then the other family members will receive the remaining sum insured.
2. Lower Premium Amount
Family floaters offer a lower premium amount compared to purchasing individual health insurance for all family members.
The reason is that the insurance provider considers shared coverage as reduced risk, thus offering lower premiums.
3. Effect On Coverage
In this type of family health insurance, if one family member exhausts the sum insured, the coverage availability of other family members will be affected until the policy is renewed.
Thus, in such a case, it is crucial to manage medical expenses with caution so that all family members can utilise an adequate sum insured.
Family Health Insurance Vs Family Floater Plan: How To Make the Right Choice?
Choosing between family floater insurance and individual health plans requires careful thought. Here are some tips to help you decide:
1. Check Your Family’s Healthcare Needs
Look at what each family member needs in terms of healthcare. Think about their ages, any existing health conditions, and medical history.
If their needs vary a lot, individual plans may offer better coverage.
2. Think About Family Size
Family floater plans usually work well for smaller families. If you have a larger family with different healthcare needs, individual plans might be a better fit.
Therefore, you must consider how many people need coverage and their specific needs.
3. Look At Coverage Limits
Review the coverage limits for both options. A family floater insurance plan provides a shared sum insured, while individual plans have separate coverage limits.
You must make sure a family floater plan can meet the healthcare needs of everyone in your family.
4. Compare Premiums And Costs
Check and compare the costs of each plan. Family floater plans generally have lower premiums than individual plans.
Consider your budget and choose a plan that offers good coverage without being too expensive.
5. Think About Future Healthcare Needs
Consider how your family’s healthcare needs might change in the future. Think about adding new family members.
Additionally, you also have to consider the healthcare needs of older relatives or any changes in medical conditions. Choose a plan that can adapt to those changes.
Family Health Insurance Vs Family Floater Plan: Get Both Designed By Tata AIG
Family health insurance and family floater insurance are both designed to provide coverage to families.
What you need to decide is which one is best for your family. Therefore, you need to keep in mind that it is based on your family size.
Furthermore, the health of its members and your medical expenses are also important pointers to consider.
Now, let?s say you have made this decision. Then, you can obtain insurance with a reliable insurance provider. One such insurer is TATA AIG.
Their family insurance plans come with excellent benefits, including inpatient treatment, a consumables benefit, and vaccination coverage.
Additionally, they also provide you with the benefits of ambulance coverage, daycare procedures, and domiciliary treatment coverage.
