Health Insurance Premium – Floater vs Individual

POSTED BY Anirban Ghosh ON July 15, 2013 6:14 pm COMMENTS (3)

Hello All,

I came across an intriguing fact while researching on which Health Insurance policy to buy.

Isn’t premium for a floater policy supposed to be less than the sum of premiums for corresponding individual policies?

Here’s what I found:

Case #1
ICICI Lombard, Complete Health Insurance
Premium for Sum Insured of 5 Lakhs, for 1 Adult, in the age group 26-35, is 6195.
Premium for Sum Insured of 5 Lakhs, for 1 Adult, in the age group 56-60, is 22896.
Premium for Sum Insured of 5 Lakhs, for 2 Adults, one in the age group 26-35 and the other in the age group 56-60, is 36656.
But 6195 + 22896 is 29091.
Premium Calculator: https://www.icicilombard.com/health-insurance/complete-health-insurance.cms

Case #2
Religare, Care
Premium for Sum Insured of 5 Lakhs, for 1 Adult, in the age group 25-35, is 5162.
Premium for Sum Insured of 5 Lakhs, for 1 Adult, in the age group 56-60, is 14603.
Premium for Sum Insured of 5 Lakhs, for 2 Adults, one in the age group 25-35 and the other in the age group 56-60, is 23920.
But 5162 + 14603 is 19765.
Premium Calculator: http://www.religarehealthinsurance.com/buy-health-insurance-policy-plan-online.html

Case #3
Max Bupa, Heartbeat
Premium for Sum Insured of 5 Lakhs, for 1 Adult, age 32, is 7485.
Premium for Sum Insured of 5 Lakhs, for 1 Adult, age 57, is 22266.
Premium for Sum Insured of 5 Lakhs (Family Floater), for 2 Adults, where age of the elder one is 57, is 34736.
But 7485 + 22266 is 29751.
Premium Calculator: http://www.maxbupa.com/productvariantpages/health-insurance-plan-HBIndividual.aspx and http://www.maxbupa.com/productvariantpages/health-insurance-plan-HBFamilyFloater.aspx

So what do you make out of these figures?

Here’s how I see it:
(i) Either my calculations are incorrect. If that is the case, I’d be glad if someone would point out what I’m doing wrong.
(ii) Or the calculators provided on these websites are grossly inaccurate, which would be a shame because many prospective customers base their decision on these figures.
(iii) Or, at least for these companies & policies, the whole sales pitch of “buy a floater policy” takes a whole new meaning. Worth mentioning here, that for Apollo Munich’s Optima Restore, the reported premiums for floater policies are indeed less that the sum of individual ones (Link: http://www.apollomunichinsurance.com/buy-health-insurance-plan.aspx).

Regards.

3 replies on this article “Health Insurance Premium – Floater vs Individual”

  1. Dear Anirban, the answer lies in the age of Sr. most policy holder. : )

    thanks

    Ashal

  2. Nikhil Verma says:

    Completely agree with Tarunn’s comment. It’s not advisable to have floater health insurance when senior most member’s age is above 50 years. For parents go with Individual health insurance.

  3. Tarunn R Pasrija says:

    I believe that the floater policies are designed keeping in mind the age of the highest individual. Thus, if 1 policy holder is between 56-60, no matter what is the age of the second individual 20-25 or 50-55, the premium would remain the same.

    I think having floater policies with such wide age gaps is not advisable because of various reasons. First being that you can take a policy for you and your wife and kids for a much higher cover at much lesser price. It is always good to have the parents policy separate than yours..

    Thoughts..?

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