While buying a health insurance policy, most individuals wonder if they should include an individual top-up plan or a family floater health plan. After all, these are the two popular health insurance plans that most insurers in India.
Some buyers prefer to go with an individual top-up plan, whereas others stick with a family-floater health plan. However, the latter has an edge over the former in many ways.
Want to know how? Read on to learn more about it in detail.
Why does investing in a family floater health plan constitute a better investment option than an individual top-up plan?
An individual top-up plan only covers the health and hospitalization needs of a specific individual. On the other hand, a large family floater health plan meets the requirements of an entire family.
No doubt, an individual top-up plan seems good on paper as it is less expensive. However, it may not be a feasible option if you have a large family. In such a case, you would need to invest in a separate plan for each member, which may put your finances under strain.
You would be better off investing in a single plan that covers the needs of all the members of your family. A family floater health plan packs this benefit in a single package.
A single individual may not use up the entire sum insured. However, this situation may not arise if it is shared among the members of a large family. This will become clear if you consider the example below.
If you buy an individual top-up plan worth 10 Lakhs, then you will need to use up the whole benefit on your own. If the sum insured is for four members of a family, then there can be two possibilities. Either one of the family members can use the whole sum insured or share it among the family members.
But that’s not all; it also benefits you in several other ways compared to an individual health top-up plan.
A family floater health plan comes with a higher sum insured in comparison to an individual health plan. This is because the former is meant for more beneficiaries than the latter.
A health insurance plan revolves around the needs of many members of a family. As such, it comes at a lower premium than the sum total of several individual top-up plans.
Final thoughts
Both individual top-up health insurance and family floater health insurance plans are beneficial in different ways. The latter turns out to be more favorable if you have a large family with several members. Any member of a family can either use the entire sum insured or share it with other beneficiaries. As such, it serves the needs of everyone in a family without making it necessary to subscribe to individual plans for all members.
Health insurance companies in India are aware of this requirement. So, they roll out family floater plans for the benefit of their clients.
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