Family first or everyone on their own? Choosing the right health cover for parents and teens

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Why the correct combination of plans is crucial

Having both teens and ageing parents under the same policy, one-size-fits-all may not be ideal. Parents will typically require medical treatment more frequently, while teens may drop by only for minor issues. Based on how you prioritise these diverse health requirements against your overall cost, whether to opt for a family floater or separate policies becomes critical.

How family floater plans operate

A family floater policy insures a collective sum insured for all members of the family. For instance, if you buy a ₹10 lakh floater plan for four members, you can all claim from the fund of ₹10 lakh. The biggest benefit is saving money — it is usually cheaper than buying four separate plans. It is also easier to manage since you pay one premium and renew one plan. But the disadvantage arises when a more experienced parent uses a vast chunk of the cover, leaving just enough for the remaining in the same year.

When individual plans are appropriate

Individual plans are most appropriate when family members have extremely disparate health risks. In case your parents are over 60 or suffer from underlying medical conditions, individual plans isolate their medical needs from your children's and yours. Additionally, premiums for family floaters are determined by the age of the oldest member, which can increase their cost as parents age. In such a scenario, it's best to purchase individual policies for your parents and maintain a different floater for yourself and your children.

Combining both for wiser coverage

Most people find that a family floater is the best of both worlds. You can buy a family floater plan for yourself, spouse, and children — and separate policies for your parents. That way, your parents' higher health expenses don't cut into your family's cover. You can also add top-up or super top-up plans, which provide extra cover at a lower premium if the base policy level is exhausted.

Reconsider when your family changes

Health insurance is not an eternal decision. Your family's health needs evolve across age and lifestyle. Your children will soon be young adults needing separate coverage, while your parents' needs could be greater. Reviewing your insurance every few years guarantees that you are properly covered at a sensible price.

FAQs

Q: Can I include senior citizen parents in my existing family floater policy?

You can, but generally not, as this increases the premium and lowers coverage for the younger lot.

Q: Do individual plans offer more claim benefits than floaters?

Individual plans make sure that a claim by one member does not affect the other, which can be a big relief for families who have older members.

Q: Is it possible to move my parents out of a floater plan later?

Yes, you can transfer them to individual senior citizen plans at renewal without paying continuity benefits like waiting periods.