Should you buy individual health plans for your parents or opt for a family floater?

It’s imperative to take these factors into consideration when deciding a right amount of sum insured and type of policy.

There are numerous health insurance plans and optional covers available in the market that are designed to target different categories of the population along with different types of coverages for hospitalization expenses and critical illness.

Priya Deshmukh Gilbile, COO, ManipalCigna Health Insurance, says, “Ideally, one should opt for health insurance plans that are highly customizable and provide extensive coverage options, apart from providing for hospitalization expenses arising out of lifestyle diseases and/or critical illnesses.”

Experts say one should opt for plans that secure not just the current health needs but also the ones they are likely to require at different stages of their life.

Separate individual policy or a family floater plan for your parents?

For a parent above the age of 50 or 55 years of age, most get confused between a separate individual policy and an overall family floater plan. Experts say, firstly, a comprehensive health insurance plan is a must-have today.

Subramanyam Brahmajosyula, Head – Product Development, SBI General Insurance says, “Floater plans are recommended covering all the family members including parents since premiums for such plans are more cost-effective compared to individual plans. Moreover, medical insurance coverage becomes more difficult to obtain as you cross 50 years of age.”

Having said that, one could also choose between a multi-individual (which offers individual cover for all the insured under a single policy) or family floater policies, instead of multiple individual policies, depending upon the need, medical history and number of members in the family.

Deshmukh, ManipalCigna Health Insurance says, “In case someone needs to capitalize on all the advantages of individual policies and yet prefers to get rid of the challenges, one should consider buying a multi-individual policy instead of multiple individual policies. The multi-individual policies offer coverages on an individual basis as in line with individual policies but under one single policy. Hence, making the policy administration much simpler, yet offers a comprehensive individual cover for each of the family members.”

Further, since all the family members are covered under one single multi-individual policy, these policies offer discounts based on the number of members covered. For instance, the ManipalCigna ProHealth Insurance Plan offers a premium discount as high as upto 25 per cent for covering 2 and more family members, which is one of the highest discounts in the industry.

Deshmukh, ManipalCigna Health Insurance adds, “Because Indians today suffer from various lifestyle-related health conditions such as hypertension, diabetes, and cardiovascular diseases owing to poor management of lifestyle regime, not to mention the current pandemic situation, which is creating a huge dent in savings, as there is a possibility of entire family getting affected – It’s imperative to take these factors into consideration when deciding a right amount of sum insured and type of policy.”

In the case of floater cover, experts say one should ensure that sum insured is at least Rs 1 crore and above to access quality healthcare in India or abroad and cater to the problems of every increasing medical inflation.