Here’s Why You Need to Invest in Individual Medical Insurance Policies

Here’s Why You Need to Invest in Individual Medical Insurance Policies. It is best to understand the basic difference between the two plans.

Here’s Why You Need to Invest in Individual Medical Insurance Policies 

Medical insurance is an investment every individual should make to save themselves from financial losses that come with medical emergencies. Even though waiting till your 30s or marriage to purchase health insurance sounds like a reasonable plan, it most certainly isn’t. When it comes to medical insurance policies, it is best to start sooner than later. 

Whether you buy medical insurance online or offline, there are mainly two types of policies you can choose from, namely individual and family floater plans. It is the first question a policy buyer must confront, and also the most important one. While both these medical insurance policies are excellent in their own capacity, it is essential to select one suitable for you. Therefore, before moving on to the details, it is best to understand the basic difference between the two. 

The Basic Difference Between Individual and Family Floater Policies

As the names suggest, an individual medical plan only covers the policyholder, whereas family floater plans cover both the policyholder and their family under the same policy. In family policies, the sum insured is shared by all covered members. On the other hand, the entire coverage amount is secured for one person in individual medical insurance policies. 

The basic distinction between the two plans is as stated above. However, individual and family medical insurance policies differ based on several features such as premium, coverage specifics, sum insured, add-on benefits, etcetera. So, it is crucial to be thorough when you decide. 

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Now that we have a gist of both individual & family floater medical insurance policies, let’s talk about this guide’s focal point: 

The Advantages of Opting for Individual Medical Insurance Policies 

  • The first advantage that comes with buying an individual health care plan is that the sum insured is dedicated just to the policyholder. This ensures maximum coverage, unlike family floater plans where the coverage amount is shared by all family members. For instance, if one family member were to avail the entire sum insured in one year, the rest would be left with nothing. 
  • As far as family medical insurance is concerned, most plans have age limitations for children, which will ultimately lead them to buy an individual policy later. The age limit typically varies between 18 and 25 years, post which children are considered adults, and must purchase separate individual (or family) medical insurance policies. 
  • Individual health care policies are the ideal choice for people with senior parents as, after a certain age, the medical expenses only increase, and a family floater plan may not offer sufficient health security. 
  • One significant advantage of individual medical plans that most people are unaware of is the excellent tax returns that come with them. While family floater policies pose tax benefits too, individual medical insurance policies rank higher on the list. 
  • Only a few insurance providers include broad-spectrum relationships in family floater plans, and it is usually limited to kids and spouses. In case you want to purchase insurance for anyone besides your immediate family, individual plans are your only option. 

Choose the Right Medical Insurance Policy 

An insurance industry assessment revealed that even though India’s insurance penetration increased from 2.71% in 2001 to 3.69% in 2017, it still lags far behind compared to other countries. This data points to the lack of insurance awareness among the Indian population, especially medical insurance, making an investment in health care policies the need of the hour. 

A good way to start would be to allow well-established and reliable insurance providers like Care Health Insurance to help you choose the right medical insurance policies. However, it is vital to assess your financial expenses and medical requirements first. Moreover, don’t rush your decision and select a plan carefully, be it an individual or family floater policy. So, what are you waiting for? Buy your preferred medical insurance policy now. 

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