Want to buy health insurance for parents? Find out if you should opt for a family float or individual covers
New Delhi: A health insurance plan is one of the most must-have, as people are now more concerned about their well-being. With the rising cost of medical treatment, there has been an increase in health awareness and related expenses, which is why people are buying health insurance plans.
However, while buying a health policy, people are often confused between the individual health plan and the family policy. These two plans are compensation plans, which means that they reimburse the actual expense incurred during hospitalization up to the sum insured under the specific scheme. It may be noted that the sum insured is the maximum amount at which the insurer agrees to reimburse or claim subject to the terms of the policy.
Mayank Bathwal, CEO of Aditya Birla Health Insurance, said that “given the rise in medical inflation and the costly medical treatment costs, it is critical to have adequate health insurance coverage. In case of emergencies “Unexpected medical insurance policy would only be supplementary. But if you have adequate and comprehensive health insurance coverage, it will be easier to manage exorbitant medical expenses.”
People are often confused between the individual health plan and the family flotation policy. An individual policy means an independent insurance coverage for each family member with defined coverage. However, in the family float health insurance plan, the limit of the sum insured can be used by any member of the family. For example, if your health insurance plan is 5 lakh rupees, during a medical emergency any member can use all that amount.
A floating family plan offers a higher sum insured compared to individual health insurance plans. There are some family plans that cover parents, siblings and dependent children, the person, the spouse and children. It may be noted that, in the case of an individual plan, there is a dedicated sum insured while, in a floating family plan, the sum insured is shared. This means that at the time of the claim of one of the family members in a family plan, the coverage is reduced. During any contingency, in which all family members require health insurance coverage, this plan will not be enough to provide financial support to everyone.
An individual policy is relatively expensive compared to the family float health plan. Family floating plan premiums are determined based on the age of the oldest member, who must be insured. However, in the case of the individual policy, the age of the applicant is taken into account.
Insurer renewals are offered up to a certain age. This means that if the oldest member of the family, who is covered in the family flotation plan, exceeds the renewal limit, no other member will be able to continue the policy.