Which is Better, Family Floater or Individual Mediclaim Policy?

When it comes to taking a medical insurance policy, it can be quite confusing for a lot of people owing to the huge variety of options available. Let’s make it a bit simple for you. Two major categories of medical insurance policies are individual mediclaim policy and family floater policy. A question will arise in your mind that what is the difference between floater and individual mediclaim policy. Let’s have a quick look at the major differences between the two:

Point of difference	Individual Policy	Family Floater Policy
Meaning and working	Under individual mediclaim policy, a particular policy only covers a single person. It is like having a separate umbrella for every person in the family.	Family floater policy covers more than one person generally a family of two adults and two children. It is like having a big umbrella that can give shelter to many people.
Example	Mr. Jeet takes a policy of medical insurance for himself for Rs 3 lakh. Under this policy, only he can claim his medical expenses.	Mr. Jeet takes a policy of Rs 7 lakhs for himself, his wife, and two minors. Under this policy, any of the four persons covered can claim from the insurance company.
Coverage	This policy covers only the person in whose name the policy is taken	Family floater policy covers the family of a person in whose name the policy is taken. The definition of family differs from provider to provider.
Sum Insured	As the policy is for a single person, the sum insured is comparatively lower if the person insured doesn’t have any severe illness.	Here, a family is covered hence the amount of sum insured is higher.
Price difference	Price in an insurance policy is the insurance premium we pay every year. The premium in individual policy runs on a lower side.	As the sum insured is higher and the premium has a direct relation with the sum insured, the premium amount is also higher.
Basis of determination of premium	The premium amount is decided on the basis of the health condition of the person for whom the policy is taken at the time of taking the policy.	Premium amount is decided by analyzing the health condition of all the members covered under the policy, mainly the oldest person covered in the policy.
Age limit	There is no age limit in an individual health insurance policies	In the case of the family floater policy, there is an age limit for children. Children above the age of 25 may not be allowed to be included in the family floater policy.
No Claim Bonus	If the policyholder doesn’t claim anything during the ongoing policy year, he is given a discount on the premium to be paid in the coming year. This is called no claim bonus.	No such benefit of ‘No claim Bonus’ is available in the case of floater policies.
Major Advantages	Individual policies are best when the holder suffers from any of the critical illnesses.	Health insurance plans for family are cost-effective because of lower premium amounts. Apart from that, it reduces the hassle of managing multiple policies.
Major limitations	The higher premium cost is a major drawback of the individual policy. Apart from that, managing multiple policies for the family can become a cumbersome task.	Children beyond a certain age cannot be a part of the family floater policy. Also, no benefit like ‘No Claim Bonus’ is offered

  A comparative analysis is drawn here showing you the major differences between individual mediclaim policy and family floater policy. What is the difference between floater and individual mediclaim policy is known to you, now it’s time to look at the facilities that Bajaj Allianz offers you in common for both medical insurance policies. This includes pre-health check-ups, pre, and post-hospitalization expenses, day-care treatment charges, lifelong renewability, daily hospital cash among many others. You can access this all here: Now the question arises, which is better, family floater or individual health insurance policy? There is no one-shot answer to that and you will have to make that decision wisely. However, guidance in this direction might help. If you are someone having health issues frequently or having a family history of life-threatening illnesses then the individual policy is preferable. If you are above the age of 45 or 50 years, it is again advisable to have an individual policy or family floater policy with only your spouse included.

FAQs:

1. How can you proceed with the family floater policy if the person in whose name policy is taken out passes away?

If the primary policyholder holding a family floater policy passes away, the expenses claimed shall be given to the family members. Also to continue with the policy, members of the family need to fill a form for purpose of change of name

1. Is it possible for one person to have more than one health insurance policy?

Yes, it is possible for one person to hold more than one health insurance policy.