If we have individual health insurance plan, the policy is issued in the name of the individual policyholder. So, if we need all our family members to get the coverage, then we have to get different health insurance policies issued in the name of our individual family member. The number of policies issued must be equal to the number of persons in our family. This ensures that everybody will have a dedicated sum assured under their respective health insurance policies.
On the other hand, the case of a family health plan is different. The insurance policy is issued to the entire family as a whole and the sum assured is be a single one for all, which however is unlike in the case of an individual health plan.
An individual health plan for each family member certainly costs more as compared to a family health plan. Despite the cost, there are certain drawbacks of family health plans due to which individual health plans are recommended over floater plans.
Individual health plans are offered to individuals, where age is one key point in the criteria for issuing a policy. The policy is issued to an individual while taking into consideration his/her age in view and the premium will be determined based on his/her age. In contrast, in case of a family floater plan, the age of the senior most family member is recorded and the policy is issued accordingly.