When Should You Move From Family Floater To Individual Health Insurance?

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Individual health insurance is a type of plan that covers each person individually, with its own dedicated sum insured. This insurance becomes beneficial as a family’s health care needs begin to be different or more extensive than they were previously.


Switching to individual health insurance at the appropriate time can provide each family member with greater protection and flexibility, as well as offer a more consistent level of coverage. Continue reading to learn more.


When Should You Switch to Individual Health Insurance?


Listed below are the situations when you may switch to individual health insurance:



  • Repeated Hospitalisations:In case you have several family members who are elderly and need to undergo hospitalisation frequently, opting for individual health insurance ensures that there is coverage for each one and does not exhaust the sum insured.

  • Diverse Health Issues:You can tailor individual policies according to your needs and personal ailments, unlike family floater policies.

  • Varying health requirements:In cases where your family members belong to diverse age brackets and health profiles, individual health insurance proves more suitable.

  • Large Number of Family Members:In larger families, family floater insurance may be inadequate. In such cases, opting for individual insurance ensures proper coverage.

  • Need for Higher Limits:Whereas a shared sum insured is limited, individual health insurance policies allow coverage for higher amounts per person.

  • Financial Considerations:Family floaters prove more economical, but individual health insurance is a better choice in terms of complete and continuous coverage.


What is the Process to Switch to an Individual Health Insurance?


Firstly, you must give notice of changing your plan at least 30 days before the renewal date, but some insurance companies may accept a shorter notice period. You need to submit the form for porting to start the entire procedure. Thereafter, you need to inform your current company to get the name of the member removed from the floater policy plan.


This will help you save money as the premium will be reduced. On average, it takes approximately 15 days for any insurance company to process your request. According to IRDAI regulations, there is no additional fee for porting.


What are the Benefits of Individual Health Insurance?


Here are the benefits of individual health insurance:



  • Individual Coverage Tailored for the Individual:Each health insurance plan is designed to cover the health needs of each individual.

  • Get Rid of Low Coverage:An individual health plan eliminates any concerns over the total amount being used up by another individual's claim in a family floater Policy.

  • Provides Each Individual their Own Coverage:The amount of each health plan is only for that individual. If, on the other hand, they had a family floater Policy, it would split the entire amount among the individuals.

  • Can Claim Deductions from Tax: There is also the additional benefit of having an Individual Policy provide you with income tax deductions up to ₹25000 for the premiums on your individual health plan. This is subject to the provisions of section 80D of the Income Tax Act.