You must have come across the terms — individual and family deductibles. A deductible is the amount you must pay before your insurer begins to cover your health care costs. Once you meet your deductible, your plan will help you pay for your medical bills. This is known as coinsurance. Before selecting your health insurance plan, you must understand the difference between these two terms, as it will help you make a well-informed decision.
What is the difference between individual and family deductible?
The core difference between individual and family deductibles is that the former provides coverage for an individual, where one person is required to pay the amount for coinsurance to kick in. A family floater plan covers all members of the household, and everyone shares the sum insured. Hence, a family deductible is the maximum amount you must pay before the insurance coverage begins. Also, remember that when it comes to individual vs family deductibles, family deductibles are higher than individual deductibles, as a family floater plan offers coverage for more than one person or multiple people.
Age is a determinant in your health insurance plan’s premiums. An individual healthcare policy premium is determined by looking at the age of the single person (i.e., the policyholder) as well as other parameters. Premiums for family floaters are determined by looking at the age of the oldest family member and other factors. A plan with a low premium and a high deductible could mean higher out-of-pocket expenses; conversely, a policy with a lower deductible will have lower out-of-pocket expenses but higher premiums.
Before choosing the policy, always keep your objective of buying a health insurance policy in mind in terms of inclusions, scope of coverage, premium costs, payouts, and your needs and pocket.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It is not intended as a substitute for professional advice, diagnosis, or treatment. Please consult your general physician or another certified medical professional for any questions regarding a medical condition. Relying on any information provided in this blog is solely at your own risk, and ICICI Lombard is not responsible for any effects or consequences resulting from the use of the information shared.