Individual V/S Family Floater Health Plan - YouTube

The discussion today is no longer on  whether you need a Health Insurance or not  

it is a no brainer that you need a health cover  to ensure that you stay in the pink of your health  

both financially as well as physically but  if you are wondering whether you should  

take a individual health cover or a family  floater health cover watch this till the end

Hi there Namaste i am Harshwardhan Dawar and the  topic for today's discussion in our series this or  

that is whether you should opt for an individual  health insurance plan or a family floater  

insurance plan a health insurance plan basically  reimburses you for any expenses that you may incur  

as a result of a hospitalization this ensures that  you don't have to dip into your financial savings  

to take care of an unplanned hospitalization the  first question you need to ask yourself is what  

is the amount of cover i should take for myself  and my family to ensure that i am not dipping  

into my financial savings if at all a health  emergency arises how much insurance you should  

have is a function of where you stay because the  hospitalization expenses are more in the bigger  

cities so if you live in a metro city or a taiwan  city i would suggest the minimum cover you should  

look for is at least inr 10 lakhs and if you're  living in a smaller city you should look for a  

minimum cover of at least inr 5 lakhs for each  person now to understand the difference between  

individual health plan and a family floater health  plan a individual health plan basically gives a  

individual cover for each of the family members  covered under the plan so if you have a husband  

wife and both the kids covered in an individual  health policy each of them would have an  

individual cover which is independent or separate  from the other members covered in the policy so in  

this we can see that the parents have a cover of  10 lakhs each whereas the kids have a cover of 6  

lakhs and 4 lakhs and this cover is exclusive  or specific for that member of the family  

what happens with a family floater is it's a  single policy covering the entire family under  

a single cover so when a family takes a family  photo policy with a some insured of five lakhs  

that sumatra 5 lakhs is available for all  the four family members to use right it is  

a single umbrella under which the entire family is  covered for an amount of five lakhs so how does a  

family floater plan actually work let's take an  example where say the husband gets malaria he's  

hospitalized and post hospitalization he comes  back uh with a bill of inf three lakhs which is  

taken care of by the insurance company with which  they had the family floater plan if three or four  

months down the line the wife also gets malaria  and she also runs a bill of three lakhs what  

will happen here is the insurance company will  reimburse you only to the extent of inr2 lacks  

because in the family floater of five lakhs  you've already utilized an amount of three lakhs  

and what is available for the entire family  for the rest of that year is an amount of only  

2 lakhs so you can see that the entire cover  is available for any family member to use but  

if a particular family member makes a claim the  total amount available for the rest of the family  

actually reduces so the question to be asked  is why should you go for a family floater cover  

yes it's pretty obvious that a family floater  is much cheaper compared to a individual health  

cover to help you understand this if you were to  individually cover each of the four family members  

with a some assured of inf 5 lakhs the total  premium the family would run up is close to about  

35 614 per annum versus if i were to take a family  floater where in the entire family is covered  

for an amount of iron or 5 lakhs the premium  reduces drastically to an amount of just 18768  

so a family floater is a extremely cost  effective way to get started and take a cover  

instead of worrying about the fact that health  insurance is very expensive and i cannot afford it  

what you should understand is the total premium  which a family pays is largely governed by the  

number of members in the family and also by  the age of the eldest member in the family  

now what has happened over time is insurance  companies have got creative they understand  

that a family floater puts a family to a  disadvantage if any one member in the family  

makes a claim and that's when they've introduced  something what is known as a restoration clause  

what happens with the restoration clause is that  if any one particular family member makes a claim  

in our example the policy amount was five lakhs  and one member made a claim a final three lakhs  

instead of the rest of the family being left with  the cover of only iron are two lakhs for the year  

the restoration clause kicks in and the some  insured is restored back to the original amount  

of inf five lakhs which is available for the  entire family to claim for the rest of the year  

so if later on another member is hospitalized  and needs to make a claim of inf five lakhs the  

entire amount is paid by the company obviously  the family floated plans which come with the  

restriction clause are a little more expensive  compared to the ones without a restoration clause  

so you may want to check the premiums before  you finalize but it is a very good option to  

have those policies which have a restoration  clause because for 20 increase in your premium  

you are able to restore the some insured for  the rest of the year and the disadvantage  

which we saw where other family members  are left with a smaller cover is taken away  

and then the rest of the family actually has the  complete cover for the rest of the year so you can  

see that a family floater plan is a fantastic way  to get started since it's pretty cost effective  

and is a much better option than not having  any insurance cover if you can afford it  

then definitely go for an individual cover or  otherwise you can go and pick one of the family  

floater plans another thing you should keep  in mind is that if any of your family members  

propose to be covered under a family floater have  pre-existing illnesses right that increases the  

chances that they would make a claim under the  policy then it would make sense to go have a  

individual cover for those members so that  the others are not left fending for themselves  

at the end of the day if you can afford  it go for an individual health plan  

if you think you cannot afford it a family  floater is a fantastic way to get started  

and if any of the members who are proposed  to be covered under the family floater have a  

pre-existing illness then you should reconsider if  a individual plan is a better option if you have  

any questions regarding your family floater  or your individual health plan do drop in  

the comments below and we will reply to those do  like Share and Subscribe our channel for freshly  

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