Basics of a Health Insurance Policy

under health insurance policies.

What’s the difference between individual insurance policy and family floater policy and which one is better?

An individual health insurance policy means that a particular policy can cater to one particular individual only, namely the holder of the policy. So, in case the individual has taken a policy for a coverage amount of 1,00,000, then he will be covered for one lakh only, and in case the expenses go over this limit, he would have to pay by himself. As against this, with a family floater policy, if a family of three is covered for Rs 3,00,000 in all, then each member is eligible to use the entire amount of three lakhs as hospitalization expenses. Hence, a family floater policy gives you a benefit of additional coverage, which is absent in case of individual health policies.

The disadvantages of a family floater policy

The family floater plan offers flexibility in terms of utilizing the overall insurance coverage among the family as a group. However, there are certain clauses which you need to be aware of. First, the policy will be renewed only till the senior most member reaches the maximum age of renewability allowed by the particular insurance company, after which other family members will need to take a fresh policy without having the benefit of their claim history and pre-existing disease coverage that comes from continuous renewal of the policy. Second, children who reach