normally confused about the group and individual health insurance policies, but
it is simple to understand the differences between them. Though both these
policies provide similar type of coverage, but they are different in the terms of
details. Normally, group insurance costs you lesser, but when it comes to
protection then people prefer to go for individual insurance plan. To
understand them better, keep on reading this article.
Group Health Insurance
is an insurance package that an organization buys for its employees. It depends
on the organization that whether it prefers to choose a pre-planned insurance
plan from a company or want to design a self-insured plan. In group insurance,
all the members are provided with a fixed and uniform cover. As all group
members would not claim the same amount, the risk factor is balanced to great
extent. And the members will remain covered by this policy up to the time till
they are a part of the organization.
Individual Health Insurance
In contrast to
its name, it is not strict that the individual insurance plan will cover only a
single person. An individual insurance plan can be bought by an individual for
himself, a group of people or for his family. This type of plan aims at
catering to the individual needs and is customized accordingly. In this type of
plan, the premium amount is determined based on the various specifications like
age, medical history, health etc. The time for which the individual health
insurance policy will remain valid is decided by the policy holder and the
employment factors are not going to affect it. One of the main features of the
individual health insurance is that it provides you the freedom to choose the
things that you want to get covered in your insurance plan.
You may have got
to know the basic difference between individual and group health insurance from
the above discussion; however, here we are going to mention their main differences
The group insurance is
registered on the name of group. So, you will not be able to use your insurance
for the loans. In contrast, the individual insurance plan is registered in your
own name; you can use it as an asset while applying for loans.
In Group insurance, policy
provider has the right to cancel your coverage anytime but individual insurance
plan can only be closed or discontinued when you will wish for it.
Group insurance plan cost you
less as compared to individual plan.
In group insurance, premium
will be automatically deducted from the salary, whereas in the individual
insurance plan you are required to pay the premium at stipulated times.
Group insurance plans do not
demand medical tests for a specific amount of coverage. But, in the case you
want to get more coverage then you are required to undergo test. In contrast,
you are required to undergo medical test before buying an individual health