Where To Include Your Parents Under Individual Or Family Floater Health Insurance

Once you start earning, Health insurance is considered one of the first things you should invest in. Why? Because life is uncertain, and a sudden health crisis can take a major toll – both emotionally and financially.

This holds even more true in the case of your parents’ health because ageing enhances the risk of several diseases. And if you could give back something to the two people who have given you so much of themselves, always give them the gift of health.

Now, while buying health insurance, you will ideally have to choose between an Individual Plan and a Family Floater Plan. So what’s more suitable for your parents? Let’s find out, in this article!

What is an Individual Health Insurance Policy?

As the name suggests, it is a type of health insurance that covers a single individual. This means, the sum insured is dedicated to one person only and cannot be shared.

How does Individual Health Insurance work?

The insurer will cover the healthcare expenses as per the sum insured you have chosen and the policy T&Cs. In return, you need to pay regular premiums.

This plan offers coverage only to a single individual.  So to cover both your parents, you need to buy two separate plans.

For example:
if you have taken a plan of Rs. 15 Lakhs for your mother, she alone will have a cover up to Rs. 15 Lakhs, for the entire policy period. Now, suppose she undergoes knee surgery and incurs expenses worth Rs. 5 lakhs. Then the insurer will settle the same with the hospital, as per the T&Cs. And her sum insured will be reduced to Rs. 10 lakhs for the rest of the policy year.

Now, let’s talk about the second type -

What is a Family Floater Health Insurance Policy?

It is a type of health insurance where family members share a single cover under a single policy. This means the sum insured can be shared amongst all members in the plan.

You will have to manage only one policy, and pay a single premium on a regular basis.

How does Family Floater Health Insurance work?

Under this plan, the entire sum insured will be available for all the members of the family. So in case one member undergoes a hospitalisation with large expenses, the entire cover will be available for them. But similarly, if one member exhausts it all, the remaining members might not be left with a sufficient cover.

You can insure the following family members under a single family floater plan -

• Yourself
• Your spouse
• Up to 4 dependent children (less than 25 years of age), and
• Up to 2 parents or parents-in-law

Some insurers allow the combination of 1 parent + 1 parent-in-law. And some may also let you add aunts, uncles, siblings, etc. to the plan.

Please remember: The claims made in a policy year should not exceed the sum insured, whether it’s used by one member or multiple members.

For example:
suppose you have taken a family floater of Rs. 15 lakhs, and want to cover your parents, your spouse, and yourself. Your father needs to undergo a heart bypass surgery and it will cost around Rs. 12 Lakhs. The family floater policy will cover it and the sum insured will be reduced to Rs. 3 lakhs.

Now, in the same year, suppose your mother needs physiotherapy sessions that cost Rs. 5 lakhs. Since the sum insured is shared among your family members, the policy will cover Rs. 3 lakhs out of your mother’s medical expenses. But the remaining Rs. 2 lakhs will have to be borne by you.

So now that we have covered the basics, let’s answer the main question -

Which Health Insurance plan should you buy for your parents?

In an individual health policy, you get a sum insured that is totally dedicated to you. Hence, you can go for two individual health insurance plans to cover both of your parents. Due to old age, they may suffer from chronic conditions and need several hospitalizations. In that situation, two separate plans will ensure that a claim made by one parent will not affect the coverage of the other.

Another good option is to buy a family floater policy for both your parents if they are healthy and don’t suffer from chronic or pre-existing conditions, etc. It will most likely be more cost-effective as compared to buying individual health insurance plans. And, it will also be easier to maintain - you will have to keep track of a single policy and pay a single premium. However, if they suffer from chronic or a pre-existing condition, then you must buy separate individual policies for them.

Our parents are more than just our first teachers or role models. To some of us, they are our everything. We cannot possibly give back to them. But we can always let them know that we care. Invest in a good health insurance plan that’s right for your parents. And gift them a long, happy, healthy life.