Health Insurance

Individual Or Family Health Insurance Plan - Which Is Better?

2:26:00 AM Lokesh kumar 0 Comments

India has a very low rate of health coverage. Only as many as 24% of Indians are covered by a healthcare policy. Considering only urban and semi-urban spaces, 29% households have at least one member covered by a health insurance policy. Only about 23% of these are men aged between 18 and 49 years. In the case of women, the percentage drops further with just 20% protected by any health cover.

While several health cover plans are available across India’s vast financial landscape, the above statistics clearly show alarmingly low rates of protection availed across the country. Further, with this debate between individual health insurance plans and ones covering a whole family raging, it is difficult for customers to decide which plan to go for.
In order to understand which is the advantageous of these two, one needs to understand these schemes individually. The former of these two only covers the single individual. The amount of financial assistance or reimbursement offered is dedicated to healthcare of this one individual. In case of a family health insurance, a specific sum of money is assured for healthcare of the whole family, to be shared between all its members. The major distinguishing feature of these two can be observed in the underneath facets.
Coverage: While an individual scheme just covers one person, a family policy usually covers the customer along with his or her spouse and children. While this means convenience in terms of logistics, it has the limitation of lower insurance cover.
Premium: The oldest member of the family decides the premium value in case of best health insurance policies which cover the whole family. Unlike in individual policies where only the customer’s age is considered, a cover policy for a family can demand a high premium in case of an ailing and old family member.

Sum insured: The sum of money insured is divided amongst different members in a policy that covers a whole family. This can be an issue if more than one member suffers from an ailment; a situation which can lead to shortage of funds. To buy health insurance that covers every member adequately even if multiple members are suffering due to ailments or accidents, individual healthcare cover plans are better options.
As mentioned above, from a logistics point of view it is way more convenient to go for a cover plan which protects a whole family. However, an intricate understanding points quite differently. The following discusses specific limitations of insurance policies which cover a whole family.
With the premium being determined by the age of the oldest member, the amount is often exceedingly high. Also, along with health insurance cost, another daunting issue is that of low coverage duration due to the age of the elderly members.
With health insurance covers being renewed on the basis of age, there can even be situations where the whole family is denied insurance cover simply because the eldest member has crossed the regulated age for health cover plans.

In case of family covers, usually the whole plan is nullified for the financial year if used once. This leaves all the other members of the family exposed in case of an accident or ailment. With an individual plan of health insurance, every member has their own cover and they can avail it anytime of the year.
Understandably, though a family policy of insurance is convenient in some ways, especially owing to the immensely less pains of logistics which include documents and multiple payments; multiple individual policies to cover all necessary individuals often makes more sense. An individual health insurance policy is simply more precise and catering to customers’ specific healthcare needs. You can check out the health insurance plans offered by Bajaj Finserv. These plans offer comprehensive coverage and simple terms for hassle-free compliance.

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