Individual or Family Floater Health Insurance: What’s the Best Option?
A comprehensive guide on how to choose the preferable health insurance between an individual health insurance and a family floater health insurance.
With health issues on the rise, a medical emergency can strike at any time, causing both mental and financial strain. Therefore, it is wise to stay covered under a comprehensive health insurance policy that provides access to quality treatment without the burden of high costs. Insurance companies in India offer various health insurance plans, with individual and family health insurance plans being the two main types. While the former is ideal for single policyholders, health insurance plans for family cover the entire household under one policy. If you are unsure which option suits your needs, this article will help you make an informed decision.

What is Individual Health Insurance?
Individual health insurance is a policy that covers the medical expenses of a single person. The premium for this plan is calculated based on factors such as age, medical history, and the coverage amount. This plan ensures that the individual has access to quality healthcare without the financial burden.
A comprehensive individual health insurance plan covers hospital bills, pre- and post-hospitalisation expenses, daycare procedures, home healthcare, AYUSH treatments, and more, ensuring you don’t have to worry about unexpected medical costs.
What is a Family Floater?
A family floater is a type of health plan that covers the entire family under a single policy. Instead of separate policies for each family member, a family floater covers multiple members – typically the policyholder, their spouse, dependent children, and parents. The sum insured by this health plan is shared among all covered family members, and the premium is usually lower than purchasing individual policies for each person. The plan ensures the family can access quality healthcare at affordable premiums.
Difference Between Individual Health Insurance and Family Floater
The following are the key differences between individual health insurance and family floater plans:
Parameters | Individual Health Insurance | Family Floater |
Coverage | The policy covers the medical expenses of only one person, i.e. the policyholder. | This health plan can cover your entire family under one policy, including your spouse, dependent children, and parents. |
Premium | The premium is calculated based on your age, medical history, and level of coverage chosen. | The policy premium depends on the total number of family members, the sum insured, and the age and health profile of the oldest covered member. |
Sum Insured | The sum insured is available only for the medical expenses of the insured individual. | The sum insured is shared among all covered family members. |
Cost | Taking separate individual health insurance plans for each family member can be more expensive. | This is more cost-effective, as the premiums are more economical compared to purchasing individual health insurance plans for each member. |
Renewability | Individual health plans are renewed separately, so each family member has control over their coverage. | A family floater is renewed as a single plan, so if one member’s health status changes, it could affect the entire family’s coverage and premiums. |
Add-ons | The policyholder can customise the plan with suitable add-ons for their specific healthcare needs. For example, a critical illness add-on can be added to cover life-threatening conditions. | The selected add-ons apply to the entire family floater, so the plan may not be as customisable for individual needs. |
Individual Health Insurance or Family Floater Plan – Which One to Choose?
When deciding between individual health insurance and a family floater plan, you must consider your specific healthcare needs, family structure, and finances and select the most suitable option accordingly. Here are a few examples:
- Family Size: If you are single or prefer separate coverage with specific add-ons, opt for an individual health insurance policy. On the other hand, if you have a spouse, children, and dependent parents, a family floater is a convenient and cost-effective option. It can cover all family members under a single plan and save you from the hassle of managing multiple policies.
- Cost: If you are looking for an affordable health plan for the entire family, choose a family floater. It is a good option for families seeking to save on insurance costs while ensuring comprehensive coverage.
- Age and Health of Family Members: If your family members are young and healthy, covering them under a family floater is a better option. However, covering senior citizens with health issues may increase the premium for the entire family.
If one or more family members have specific medical needs or are older, you can choose health insurance plans for family members, as these can be customised according to their healthcare needs.
- Flexibility: A family floater offers limited flexibility since the sum insured is shared among all covered family members. Therefore, if you need customised coverage for a family member, individual health insurance may be a better choice. It provides greater flexibility in terms of add-ons, riders, and coverage limits, making it a suitable option for those seeking personalised health coverage to meet specific needs.
Conclusion
To summarise, if you want to cover your entire family under one policy and save on premiums, choose a family floater. On the other hand, if you wish to customise coverage for family members with different health needs, individual health insurance plans are a better option. In some cases, you can even opt for a combination of both. You can cover yourself, your spouse, and dependent children under a family floater, while elderly parents with specific health conditions can be covered under individual health insurance plans.