Individual vs. Family Health Insurance: Understanding the Difference
Today, to cope with the rising competition in every field of society, all age groups go through an immense amount of anxiety and stress, which leads to irregular sleep cycles, intake of unhealthy food, and the development of bad habits like drinking, smoking, etc. Moreover, we all want to safeguard our family from all the possible external threats that may cause them harm in the future. No matter what age group you belong to, imagining your loved one falling sick is the most frightening thought to have. Therefore, just like you take care of all the essentials in your life, it is time to make an exhaustive health insurance plan for your family a top priority. In this article, we will focus on explaining the difference between Individual health insurance and family health insurance plans. Let’s have a look.
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There are several health insurances plans available in India for families and individuals. But let us begin by understanding what an insurance plan does and why is it an important investment? A health insurance plan covers all the medical expenses that arise if someone receives treatment for a disease or sickness. In addition, it also covers unfortunate accidents and provides financial support to the family of the affected person in the accident.
To narrow down, there are two types of health insurance plans in India:
- Health insurance plans for family
- Individual health insurance plans
The basic difference between the two is simple — an individual health insurance plan is only designed for one person. It provides claim and cover for an individual and does not include any other member of the family. On the other, a health insurance plan for a family is a broader version of the individual health insurance plan. Instead of providing financial cover for just one person, it ensures the whole family’s health, including spouse, parents, children, etc. However, for adequate coverage, it is advisable to buy a separate health insurance plan, such as a senior citizen health insurance plan for your parents.
Before signing up for either, keep in mind that it is always better to go for a family health insurance plan as it offers wider benefits at a reasonable cost. Even though both the plans are drafted for the same purpose, nonetheless, buying a health insurance plan for your family is much more convenient and beneficial when it comes to covering the health of all your family members.
Now, when it comes to buying individual health insurance plans for all family members, the biggest advantage is the all-inclusive coverage that it provides. Usually, this is because every person has their sum insured under this policy, unlike a family health insurance where the insured sum is divided amongst everyone insured in the plan. However, the total cost of individual health insurance plans might be higher than a family health insurance plan.
While you are searching for a suitable health insurance plan, the best tip we can give is to look beyond premiums and aim for a policy that would cover all family members and bring maximum benefits from both policies. Once you have decided to invest in a health insurance plan for your family, start your online research and visit the websites of the best available insurance providers around you. We recommend you seek the services of one of the reputable insurance providers like TATA AIG. They have been in the business for more than two decades. TATA AIG has a brilliant panel of experts who draft efficient and effective policies that offer multiple benefits such as ease of hospitalization, coverage of ambulance charges, convalescence benefits, and more. If you wish to learn more about their services, you can visit their official website.
