With the rise in medical expenses, there is no doubt how important it is to buy a health cover. These insurance policies come in different shapes and sizes, however, their main aim is to provide basic financial coverage to the policyholder, so, that he/ she doesn’t have to worry about hospitalization bills and medical expenses. So, now you know that the main goal of all insurance policies is the same, but these plans are not created and utilized the same. There is some difference when it comes to individual and group health insurance plans. Knowing the difference between the two will help you identify what type of insurance you need. We have mentioned the pros and cons of both the plans, but before that let's understand what the definition is of both plans:
Individual Health insurance
An individual
health insurance plan is a policy that is purchased by a person to insure themselves from paying high medical expenses and hospitalization bills. You can buy a health policy for yourself, or your spouse, or children, or even for your elderly parents. The premium rate is calculated based on policyholder’s age, gender, medical history, and much more. You should know that premium paid in this type of health plan can be expensive. However, in such plans, you can get a more comprehensive cover that will target your personal needs. You can also avail add-ons to enhance your coverage.
Group Health insurance
As the name suggests,
group health insurance plans are purchased when a group of people wants to get insured. These are more common in the corporate world where employers bought this plan for their staff. But social groups, sports teams, and joint families can also buy this health plan. The premium is calculated based on the size of the group, the industry company operates in, demographics of the people involved, and much more. Buying a plan for a group will reduce the premium rates but it will also reduce some of the benefits that one can get in an individual health plan.
Individual Vs Group Health insurance: Pros & Cons
Given below are the pros and cons of the individual and group health insurance plans:
Pros
Individual Health insurance
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Group Health insurance
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More flexibility in the tailoring of coverage
| Cheaper coverage for better conditions
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You will have more control over co-pays, deductibles, and benefit limits
| Even if you are suffering from a pre-existing condition, you will get the coverage without any test.
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You can research and choose the insurance company that you like
| Some brokers offer extra administration and claims support to corporate clients
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You don’t have to be employed with a company or be with a group to be eligible for the health plan.
| Lower premium rates
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Cons
Individual Health insurance
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Group Health insurance
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Higher premiums
| You won’t be able to set coverage benefits and limits
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Extra costs, or no coverage for pre-existing conditions
| You only be insured under the plan until you are employed, once you cease the employment, you will no longer be the part of the plan.
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Lack of support for using the plan where some insurers and brokers are concerned
| You don’t have authority on the plan.
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