Should you buy individual health insurance over a family health insurance plan?

With the increasing cost of medical treatments and the growing awareness of the importance of maintaining good health, it is no surprise that more people are considering health insurance. Among the different types of health insurance plans, individual health insurance and family health insurance are two popular options. While both plans provide coverage during a medical emergency, they offer different features and benefits. In this article, we will compare the difference between individual health insurance and family health insurance to determine which one is a better deal as per  your needs.

First, let’s take a look at how does these two types of health insurance plans work.

How does individual health insurance work?

Individual health insurance is designed to cover the health expenses of a single person. It provides coverage for medical expenses, including hospitalisation, surgeries, diagnostic tests, and pre-existing conditions in some cases. The policyholder can select the sum insured, depending on their individual requirements. The premiums for individual health insurance are lower compared to family health insurance policies.

How does family health insurance work?

Family health insurance is designed to offer coverage for the whole family. It covers the policyholder, spouse, and dependent children and can also provide coverage for parents, siblings, or other dependent relatives. The policy includes a sum insured that can be utilised by any insured member of the family. The premium amount for family health insurance policies is higher than individual health insurance policies.

Which is better: buying a family health insurance or multiple individual health insurance policies?

Buying a family health insurance policy or multiple individual health insurance policies depends on specific requirements. If a person has a small family with a maximum of two dependents, it may be better to purchase multiple individual health insurance policies. On the other hand, if the family is large, with more than two dependents, it is better to opt for a family health insurance plan. Also, having only one family health insurance is manageable than having multiple individual health plans. At the end, it depends on your medical needs and budget.

Advantages of buying a family health insurance over individual health insurance:

Comprehensive coverage: Family health insurance plans provide comprehensive coverage for all members of a family, including dependent children and parents. It offers coverage for hospitalisation, diagnostic tests, and surgeries, giving peace of mind to the policyholder.

Cost effective: Family health insurance policies offer a higher sum insured than individual health insurance plans. The premium is divided among all members, which often makes it more cost-effective than purchasing individual policies for each family member.

Disadvantages of buying a family health insurance over individual health insurance:

Higher premiums: Family health insurance policies have higher premiums compared to individual health insurance plans due to coverage for multiple members. The policy premium increases as you add more members to the policy.

Limits on coverage: With family health insurance plans, the sum insured is shared amongst all family members insured under the policy. If one or more family members require extensive medical treatment, this can exhaust the sum insured fast, leaving the remaining members with insufficient coverage.

Limited customisation: Family health insurance plans offer limited customisation as it is designed to provide coverage for multiple members. Policyholders have limited options to customise the coverage as per specific requirements.

Choosing between individual health insurance and family health insurance depends on various factors. If a person has a small family with relatively healthy members, individual health insurance policies might be a better deal. However, if the family is large, with several dependents, and requires extensive medical coverage, family health insurance policies offer a better deal.

In conclusion, it's important to consider individual requirements and select an appropriate health insurance policy that offers the right coverage and suits your budget.  You can choose from a range of health plans, including pocket-friendly plans that covers your day-to-day expenses offered by leading insurance companies at Bajaj Finance Insurance Mall. You can compare health insurance plans offered by some of the leading health insurance companies in India. Moreover, Bajaj Finance Insurance Mall offers 100% digital buy process, making it more convenient for the customers to avail the health insurance plans from anywhere and anytime.

 Disclaimer:

T&C Apply. Bajaj Finance Limited (‘BFL’) is a registered corporate agent of third party insurance products of Bajaj Allianz Life Insurance Company Limited, HDFC Life Insurance Company Limited, Future Generali Life Insurance Company Limited, Bajaj Allianz General Insurance Company Limited, SBI General Insurance Company Limited, ACKO General Insurance Limited, ICICI Lombard General Insurance Company Limited, HDFC ERGO General Insurance Company Limited, Tata AIG General Insurance Company Limited, Niva Bupa Health Insurance Company Limited , Aditya Birla Health Insurance Company Limited, Manipal Cigna Health Insurance Company Limited and Care Health Insurance Company Limited under the IRDAI composite CA registration number CA0101. Please note that, BFL does not underwrite the risk or act as an insurer. Your purchase of an insurance product is purely on a voluntary basis after your exercise of an independent due diligence on the suitability, viability of any insurance product. Any decision to purchase insurance product is solely at your own risk and responsibility and BFL shall not be liable for any loss or damage that any person may suffer, whether directly or indirectly. Please refer insurer's website for Policy Wordings. For more details on risk factors, terms and conditions and exclusions please read the product sales brochure carefully before concluding a sale. Tax benefits applicable if any, will be as per the prevailing tax laws. Tax laws are subject to change. BFL does NOT provide Tax/Investment advisory services.  Please consult your advisors before proceeding to purchase an insurance product. URN No. BFL/Advt./23-24/195

Published on: Thursday, October 26, 2023, 10:52 AM IST