Health insurance: Multi-individual cover versus family floater plan

Health Insurance coverage is an important aspect of protecting one’s financial and personal well-being in the face of unexpected medical emergencies.

In today’s world of growing medical inflation, lifestyle diseases and infectious diseases, it is important to have an adequate sum insured health insurance policy to access quality healthcare and cater to the entire family’s changing healthcare needs. 

However, when it comes to purchasing the right health insurance policy, consumers today are faced with an increasing number of choices and choosing the right health insurance cover requires careful consideration of various important aspects to help find the best one.

In this article, let’s explore why multi-individual cover under the same health insurance policy would be more beneficial over a family floater cover where one sum insured is available for all members.  

Advantages of choosing multi-individual cover vs family floater cover

While both policies offer various benefits, there are distinct advantages of choosing multi-individual health insurance cover over a family floater health insurance policy.

Dedicated coverage 

First and foremost, multi-individual health insurance cover provides each individual with their own dedicated coverage. This means that each person has their own policy with a separate sum insured, which they can use for their medical expenses without affecting the coverage of other individuals in the policy. In contrast, family floater health insurance policies provide a common sum insured that covers all members of the family. This means that the total coverage available to the family is shared among all members, and if one member exhausts their limit, it can impact the coverage available to other members.

Moreover, multi-individual health insurance cover provides flexibility to the policyholders. For instance, if an individual wants to enhance their coverage or add additional coverage, they can do so without affecting the coverage of other members in the policy. This allows each individual to tailor their coverage to meet their unique needs, which can be particularly important if they have specific health concerns or requirements.

Protection against claims

Another advantage of a multi-individual health insurance cover is that it provides greater protection against claims. In the event that one individual makes a claim, the coverage available to other individuals in the policy is not impacted. This is in contrast to a family floater health insurance policies, where a single claim can exhaust the entire sum insured, leaving the remaining family members vulnerable.

Control over premium costs

Multi-individual health insurance cover also offers greater control over premium costs. Since each individual has their own policy, the premiums are based on their individual risk profile, rather than being averaged out across all members. This means that individuals who are healthier or have a lower risk profile may be able to pay lower premiums, which can be a significant advantage in the long term.

Greater peace of mind

Finally, a multi-individual health insurance cover can offer greater peace of mind. With individual policies, each person knows that they have their own dedicated coverage and that their medical expenses will be covered regardless of what happens to other members of the policy. This can be particularly important in times of crisis or emergencies, when individuals may need to rely on their insurance coverage to receive timely and effective medical care.

Things to keep in mind when purchasing the health insurance cover 

The decision to purchase health insurance is one of the most important financial decisions that a person or family can make. When it comes to choosing between a multi-individual cover and a family floater cover, the decision ultimately depends on the specific needs and requirements of the individual or family. A thorough evaluation of the options can help ensure that the right coverage is chosen. 

Evaluate the family size: One important factor to consider is family size. Family floater cover may be more cost-effective for those with large families, while a multi-individual cover may be a better option for those with fewer dependents. However, it is important to note that some family floater health insurance policies may have limitations on the number of dependents that can be covered, so it is important to carefully evaluate the specific policy. 

Consider coverage needs: Another consideration is coverage needs. Different health insurance policies offer different benefits and coverage options, so it is important to think about the specific needs of the individual or family. So, understand your medical needs and choose the sum insured that will meet the present and future health care needs.

Compare costs: Cost is also an essential factor to consider when choosing between a multi-individual and family floater cover. It is important to carefully evaluate the costs associated with each type of coverage, including premiums, deductibles, co-pays and other fees. It is also important to consider the long-term costs, such as out-of-pocket expenses and potential limitations on coverage. 

Take expert advice: To make an informed decision, it can be helpful to speak with a professional such as a health insurance agent or visiting insurer’s website. They can provide valuable advice and guidance on which type of coverage is best suited to an individual or family’s specific needs. 

With the rising cost of healthcare, it is becoming increasingly important to have a reliable and comprehensive health insurance policy. While family floater health insurance policies can be a viable option for some families, there are distinct advantages to choosing a multi-individual health insurance cover. With dedicated coverage for each individual, greater flexibility, greater protection against claims, greater control over premium costs and greater peace of mind, a multi-individual health insurance cover is a smart choice for those looking to safeguard their health and finances in the long term.

(The writer is the chief distribution officer at Manipal Cigna Health Insurance)