However, individual insurance plans differ in quite a few ways. Let’s examine the advantages of individual health plans versus family health plans to help you decide the best course of action.
Features of individual health plans
- Cashless hospitalisation If you require immediate hospitalisation, most individual health plans offer cashless hospitalisation benefit. This allows the policy holder to avail treatment at no cost with the eventual bill to be settled by the insurer.
- Hospitalisation daily allowance For each day spent in the hospital, a cash allowance is provided to cover medicines and other incidentals. However, this is subject to the duration of hospitalisation as specified by the policy.
Features of family health plansFor the average family, individual health plans can be untenable in terms of cost. With each new addition, managing separate individual plans can get onerous. Here are some more reasons why family health plans are a better solution to the needs of your loved ones:
- Higher coverage Family insurance plans are designed to cover all members of a family, including dependent parents, in some cases. They come with higher sum assured limits as more people need to be covered. They offer enhanced coverage in terms of consultation fees, hospitalisation expenses, etc.
- Alternative for minors Family health plans provide coverage from the point of birth. They are ideally suited for families with minor children who are otherwise not eligible for individual health insurance.
- Cost effective Family plans are more affordable for families and eliminate the need to monitor multiple different policies. The return on investment is higher as any member of the insured family can avail coverage at considerably lower premiums compared to multiple individual health policies.
How to choose between the two?If you have both young children and dependent parents, either option may not be able to provide the flexibility you need. To make a balanced choice, you can:
- Choose a separate individual family health insurance plan for yourself, spouse and children. This can help you benefit from lower premiums and get better coverage than individual plans.
- Opt for a dedicated health insurance family plan for your parents or in-laws. This provides better coverage and ensures that any accumulated no claim bonus, that would have otherwise been lost, is preserved.
Learn more about different Health Insurance Plans here.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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