The insurance benefits are shared among the group members, and the total cost of a floater plan is typically lower than covering each family member individually
The typical health insurance plan can be bought either for an individual or for the whole family. The family cover – also known as the family floater plan – can cover you, your spouse, your children, and your parents. The insurance benefits are shared among the group members, and the total cost of a floater plan is typically lower than covering each family member individually.
But there’s a lot more to consider than just costs of insurance. So how does one decide which plan to buy? Let’s take a look at several scenarios that arise.
Single? Go for individual cover
If you’re a single person without dependents, you should opt for an individual plan where you alone are covered. Even if you’re covered under a corporate group plan provided by your employer, you should have a supplementary insurance cover. Group covers are typically small in size and may also not cover your individual needs very well. A personal health cover augments your corporate cover, and also protects you while you’re transitioning from one job to another. A 25-year-old person with no other health cover can avail a coverage of Rs. 5 lakh for annual premiums starting from Rs. 5251. Starting young is key. The younger you are, the cheaper your insurance premium is likely to be.
Married, have kids? Take a family floater
You and your spouse can be covered under a floater plan where you have shared benefits. If you’re a 30-year-old, you and your spouse can avail a floater health cover of Rs 5 lakh from annual premiums starting from Rs. 7990. This would be cheaper than buying individual covers assuming you’re both the same age. Your children, too, can be covered under this plan. However, they will need to be below the maturity age as set by the policy. This age is typically in the range of 18-25. After this age, they will no longer be covered by the policy and will need an individual cover.
Aging partners? Buy them a separate plan
The premium of a floater cover are determined by the age of the group’s oldest member. If your parents are senior citizens or about to become senior citizens, it would be advisable to create a separate family floater plan for them. Their insurance needs are higher than yours, therefore you can seek a plan with features that help senior citizens. Assuming your parents are aged 55 or under, the premiums on a cover for Rs 5 lakh would start from around Rs 15,455 for them.
Lastly, the health insurance marketplace is full of attractive options for all age groups and requirements. It’s important that you get the best possible coverage. One way to do this is to go online and compare your options. When in doubt, consult an insurance advisor. Health insurance is a necessity, and you should not leave any family member without coverage.The writer is CEO, BankBazaar.com