Group Health Insurance Vs Family Floater Insurance

Group Health Insurance, also known as group medical insurance policy, is a kind of health coverage provided by employers to their employees. It's a single policy that covers a group of people, typically those working for the same company.

Key Features of Group Health Insurance

Employer-Sponsored: The company usually pays for part or all of the premium.

Covers All Eligible Employees: It generally includes all employees, regardless of their health condition.

May Extend to Family Members: Most group policies allow employees to add their spouse, children and sometimes parents.

Standard Coverage: The benefits are usually the same for all employees in the group.

Family Floater Insurance is one type of health insurance that covers multiple family members under a single plan. It's called a "floater" policy because the coverage amount can be used by any or all insured members of the family.

Key Features of Family Floater Insurance

Covers Multiple Family Members: Typically includes the policyholder, spouse, children and sometimes parents.

Shared Sum Insured: The total coverage amount can be used by any insured family member.

Single Premium: You pay one premium for the entire family.

Customisable: You can often tailor the policy to your family's specific needs.

To better grasp the difference between Group Health Insurance and Family Floater Insurance, it's important to understand the concepts of floater and non-floater policy.

Floater Policy

• A floater policy, like Family Floater Insurance, allows the sum insured to be shared among all insured members. This means any family member can use part or all of the coverage amount.

• For instance, if your Family Floater insurance has a ₹10 lakhs amount covered:

• Your spouse could claim ₹3 lakhs for surgery

• Your child could then use ₹2 lakhs for medical treatment

• You would still have ₹5 lakhs left for any other family member to use

Non-Floater Policy

• A non-floater policy assigns a fixed sum insured to each covered individual. Group Health Insurance policies can be either floater or non-floater, depending on how the employer sets them up.

• For example, in a non-floater Group Health Insurance policy:

• Each employee might have a fixed cover of ₹5 lakhs

• This amount is specific to that employee and can't be shared with others

When deciding between Group Health Insurance and Family Floater Insurance and understanding the difference between floater and non-floater policies, consider these factors:

Employment Status: If you're employed and your company offers a good group medical insurance policy, it's often beneficial to take it.

Family Size and Age: Family Floater plans are great for young families but may become expensive as members age.

Health Conditions: If you have pre-existing conditions, Group Health Insurance policy might offer immediate coverage.

Budget: Consider the cost of premiums and your ability to pay, especially for Family Floater plans.

Desired Coverage: Think about what health risks you want to cover and what additional benefits you need.

Job Stability: If you change jobs frequently, a Family Floater plan provides continuous coverage.

Customisation Needs: If you want a tailored health plan, Family Floater offers more flexibility.

Long-term Planning: Consider how your health insurance needs might change over time.

Claim History: If you have a history of frequent claims, a non-floater policy might be more suitable.

Geographic Coverage: Check if the policy covers treatment across different cities or countries, if relevant to your lifestyle.

Both Group Health Insurance and Family Floater Insurance have their advantages and understanding the difference between floater and non-floater policies is key to making the right choice. Here's a simple guide:

Choose Group Health Insurance if:

• Your employer offers a comprehensive group medical insurance policy

• You want immediate coverage for pre-existing conditions

• You're looking for the most cost-effective option in the short term

• You don't mind standardised coverage

Choose Family Floater Insurance if:

• You want a customised plan for your family

• You're self-employed or your employer doesn't offer health insurance

• You want the flexibility to keep your coverage when changing jobs

• You prefer a floater policy where the sum insured can be shared among family members

Remember, the choice depends on your unique situation. Some people even opt for both – using Group mediclaim policy as primary coverage and a Family Floater plan for additional protection.

Whichever option you choose, having insurance is crucial in today's world of rising medical costs. It provides financial security and peace of mind which ensures that you and your loved ones can access quality healthcare when needed.

Take the time to understand your options, compare different plans from reputable insurers like TATA AIG that offer SME insurance and family floater plans, and choose one that best fits your family's health needs and financial situation.

Is family floater better or individual?

Family floater policy covers multiple family members under one plan, often at a lower cost. Individual policies provide separate coverage for each person. The better choice depends on your family's health needs, age and budget. Also, consider family size and medical histories when deciding.

Can I change the family floater to individual?

Yes, you can typically change from a family floater to individual policies. This is usually done at policy renewal time. Contact your insurer to discuss the process. Be aware that premiums may change for certain coverages.

What are the disadvantages of a family floater mediclaim policy?

Family floater policies have a shared sum insured, which may be inadequate if multiple family members need extensive treatment simultaneously.

Premiums increase with the oldest member's age, potentially making it costly for younger family members. Coverage may not be tailored to individual needs, especially for family members with specific health concerns.

If this is the case, you can buy individual plans for family members with specialised health concerns and a floater policy for the rest of your family members to ensure proper healthcare coverage.