Choosing the Right Health Insurance

Choosing the Right Health Insurance – It’s Easier Than You Think

24th June 2019 8min read 610 views

If you have been successfully ‘adulting’ for a while now, we’re sure you’ve pulled your hair out at least once while trying to find the right kind of health insurance for your needs. If you haven’t found yourself at your wits’ end, congratulations – you’re 1 in a million! If you have, we’re here to help. Basically, there are two main types of health insurance policies – individual and family floater. But, which one do YOU need? Let’s take a look at how they compare with each other.

1. Who’s Covered:

Despite what its name suggests, an individual plan, like a family floater, can provide cover for 6-8 family members. Whichever variant you pick, you can rest assured that a single policy will be enough to provide cover for your loved ones.

2. How Much Do I Pay:

  • For individual health insurance plans, every person has their own sum insured. So, the premium to be paid will depend on every individual’s age, lifestyle, medical history and the amount of cover they’re expecting. For healthy and young individuals, getting a good premium for a policy with high cover is incredibly easy.
  • With family floaters, the age of only the most senior family member is considered when the premium is calculated. If you’re a young parent with small children, this could work in your favour. You’ll be able to get cover for your loved ones for a very affordable price.
  • If you’re looking to insure your aging or elderly parents, instead of buying a family floater choose an individual health insurance plan for yourself and your parents as it is cheaper and provides great coverage.

3. How Much Cover Do I Get?

  • With an individual plan, you can choose to use as much or as little of the sum insured as required, without affecting anybody else’s ability to make a claim in the future.
  • But since family floaters share the sum insured amongst all the covered members, it is necessary to keep a count on the number of claims you make every year. This will give you a better idea of your status and keep your family protected.

4. Confused? Maybe this example will help:

  • Let’s assume your family floater covers 6 family members for up to Rs. 10 lakhs. You meet with an accident and require medical attention. Over time, the bills pile up and your total claim amounts to Rs. 4 lakhs. Now, you and the rest of the family will only have Rs. 6 lakhs to share for the rest of the year, which could end up being fairly problematic. Of course, you could choose to restore your sum insured by selecting the restore add-on when you purchase your policy. But even with the add-on, you can only restore your entire sum insured once a year.
  • Typically, family floaters allow higher cover than individual plans. But if you have a family member who is unwell and likely to claim for a significant chunk of your sum insured, an individual policy might be the smarter option.

5. The Age Limits on Renewals:

  • Most health insurance policies have a maximum age limit of 65-70 years. As an individual, once you hit the limit, you may no longer be able to purchase new policies. So, it’s best to get in on the action while you’re young!
  • With family floaters, however, if something happens to the primary insured, the entire plan may lapse. This is why we strongly recommend checking the terms and conditions to ensure that you have the cover you need, whenever you need it.

6. So, who’s the winner:

Honestly, it’s hard to say. Depending on your family situation, you might want to choose a plan which works best for you. And, if you like having your fingers in multiple pies, perhaps you can opt for both. An individual policy with decent cover and a family floater with a higher sum insured could end up being the ideal solution for your situation.

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