Buying a health insurance policy is one of the most crucial aspects of financial planning. It provides a financial safety net against exorbitant medical costs you may incur should you or any of your family members gets hospitalised.
However, when selecting a health insurance policy, it is essential to understand the different types of plans available and how they cater to your specific needs.
Two common types of health plans are family and senior citizen health insurance plans. This blog explores the difference between the two, helping you to select the best-suited policy for your loved ones.
Understanding Family Health Insurance Plans
Family health insurance plans provide coverage for an entire family under a single policy. Such plans are also known as family floater plans and typically cover the policyholder, their spouse, children and sometimes parents.
Instead of buying individual health plans for different family members, you can purchase a family floater plan. The sum insured will be shared among all family members.
For example, if you buy a family floater plan for yourself, your spouse and two children, with a sum insured of ₹10 lakhs, it means that you can make a maximum claim of ₹10 lakhs if any of your covered family member get hospitalised.
The family health insurance cost is calculated based on the age and health of the oldest family member and the chosen coverage.
Reasons to Buy a Family Health Insurance Plan
Below are a few reasons to consider buying a family floater health insurance plan:
Comprehensive Coverage for the Entire Family
As mentioned earlier, a family floater plan covers all family members under a single policy. It typically includes the policyholder, spouse, children and sometimes even dependent parents. Instead of managing multiple individual policies, you can enjoy the convenience of a single plan that caters to the healthcare needs of your entire family.
Family Health Insurance Cost
One of the significant advantages of a family floater plan is its cost-effectiveness. Buying individual health plans for each family member can be expensive. However, with a family floater plan, you pay a single premium, which is generally lower than the cumulative premiums of individual policies. It is the best way to ensure affordable insurance for a family.
High Sum Insured and Flexibility
Family health insurance plans typically offer a higher sum insured than individual plans. The sum insured can be utilised by any family member, ensuring there is sufficient coverage when needed. For instance, if one family member requires extensive medical treatment, the entire sum insured can be utilised without any restrictions.
Simplified Management
Managing multiple health insurance policies can be cumbersome. However, with a family floater plan, you have a single policy to manage, renew and keep track of. It simplifies the administrative process and reduces the risk of missing renewal dates or crucial updates regarding your health insurance policy.
Understanding Senior Citizen Health Insurance Plans
Senior citizen health insurance plans are specifically tailored to meet the healthcare needs of senior citizens. These plans address the unique medical requirements of elderly people, who are more likely to need frequent medical attention.
If you are looking to procure
health insurance for parents, buying a senior citizen health plan is a better option. However, the premiums for such plans are generally on the higher side. You can buy a senior citizen health insurance plan for one or both parents.
Reasons to Buy a Senior Citizen Health Insurance Plan
Here are a few reasons why purchasing a senior citizen health insurance plan for your elderly parents is a good option:
Tailored Coverage for Your Parents
Senior citizen health insurance policies are specifically designed to cover illnesses and medical conditions that are more prevalent in elderly people. These plans often include coverage for chronic diseases, age-related ailments, and other health issues that may not be adequately covered under a family floater plan. They ensure that your parents receive the care they need without any compromises.
Lifetime Renewability
Senior citizen health insurance plans offer the benefit of lifetime renewability. This is a boon for ageing parents who need the health insurance plan most in their golden days.
Tax benefits
You can enjoy tax benefits of up to ₹50,000 on the premiums you pay towards senior citizens health insurance plans. This is a dual advantage as it helps you enjoy tax deductions and financial savings along with ensuring protection for your parents’ health.
Family vs Senior Citizen Health Insurance Plans
Now that you know what family and senior citizen health insurance plans are let us explore the differences between family vs senior citizen insurance based on various aspects:
Feature |
Family Health Insurance |
Senior Citizen Health Insurance |
Coverage | Covers all family members | Covers only the senior citizens insured under the plan |
Minimum Entry Age | No minimum entry age | Usually up to 65 years |
Premiums | Depends on the age of the eldest insured member | Depends on the age and medical condition of the insured |
Eligibility Criteria | Anyone who wants to cover their family can buy | Can be purchased for people of specific age, as decided by the insurer |
Coverage
A family floater plan covers all insured family members, irrespective of age. They may include the policyholder, their spouse, dependent children and parents. On the other hand, a senior citizen health plan provides coverage exclusively to the insured senior citizens.
Minimum Entry Age
There is no minimum entry age in the case of a family health insurance plan. You can include your children after 90 days of birth in such a plan. However, a senior citizen health insurance policy may have entry age restrictions.
Premiums
Premiums for a family floater plan depend on the age and health of the oldest family member. If all members to be included in the policy are below the age of 40 years, premiums can be economical. On the other hand, the premiums for senior citizen health insurance plans depend on the age and medical condition of the insured. However, it is much more affordable than the expense of getting medical treatment for the elderly.
Eligibility criteria
Anyone who wishes to provide health coverage to their family members can buy a family floater plan. Most insurance companies require the primary policyholder to be at least 18 years old at the time of purchasing the policy. Eligibility criteria for senior citizen health plans, however, may vary from insurer to insurer.
The Bottom Line
Choosing the right
health insurance policy requires understanding the specific needs of your family members. A family floater plan is ideal if you are looking to cover multiple members under a single policy at an affordable cost. On the other hand, if you want tailored health coverage for your elderly parents, you can go for a senior citizen health insurance plan.
Reliance General Insurance offers
health insurance for senior citizens, families and individuals at affordable premiums. You can compare family health insurance plans available with us and choose the one that is best suited to your needs. With us, you get the assurance of a 100% claim settlement ratio, which ensures you of a quick and transparent claim settlement with us.
Frequently Asked Questions
Are there any exclusions in the case of senior citizen health insurance plans?
The inclusions and exclusions of a health insurance policy depend upon the insurer’s terms and conditions. Please read your policy document carefully before buying.
Can I buy separate senior citizen health insurance plans for my parents?
Yes. You can buy separate senior citizen health plans for your parents or you can also include them in a single policy.
How are the family health insurance premiums calculated?
The premiums for family floater plans are calculated based on factors such as the age and health of the oldest family member, sum insured, waiting period, co-payment, etc.
