When choosing a health insurance plan, get answers to these two questions

Firstly, is it your entire family that needs insurance or only elderly parents, senior citizens who do? Naturally your old parents need health coverage the most but apart from them, you must also cover yourself and your family, if you are married and have kids. Good health in the present is no guarantee against sudden illness or accident, which can result in large medical bills. These will put a strain on your finances. The current covid health crisis further highlights the need to safeguard your health now more than ever.

Additionally, it is better to start early not only for the cost advantages but also because a record of uninterrupted health cover makes it easier to get insurance when you need it later in life.

The next decision to be taken is about the type of policy. You may choose between a family floater policy that will cover the entire family or individual health plans. While the floater policy has the advantage of covering the whole family at a low premium with a larger sum assured, it comes with certain drawbacks, the most important one being that the premium will typically depend upon the age of the oldest member being covered. In case of a high age associated medical complications, the premium is higher.

Then there is the additional issue of the policy terminating upon death of the primary insured person. The others will then be without cover and have to take a new policy.

Consider covering your parents separately with individual health policies so that they are adequately covered for their specific needs. For yourself, your wife and children, a low cost family floater policy will work just as well since you are younger and healthier.

The decision on taking a family policy or individual policies should not be based on the cost alone but also the flexibility to tailor the health cover to suit specific requirements.