Difference Between Group and Individual
Health Insurance Plans
There is a wide-range of customised health insurance plans accessible for every individual nowadays. The choices in the market have made things more convenient to select a health insurance plan for unforeseen medical expenses. Health plans can be broadly divided into two categories: Group health insurance policies and Personal or Individual health insurance policies.
A few differences must be appropriately acknowledged when it comes to group and individual health insurance. To ensure that you make the best choice for your family's financial future, you must do this.
What is a Group Health Insurance Policy?
A group health coverage is one that a company or organisation offers as a benefit to its employees. The group's collective risks are considered while determining the scope and premium. The members will access the coverage as long as they remain a part of the group.
What is Individual Health Policy?
It is a type of health insurance plan that people purchase just for themselves to ensure they have the benefit of complete coverage. While the premium is determined based on the client's age, family medical history, lifestyle, and the type of coverage chosen, the policy coverage is typically tailored to meet the specific needs of the individual.
Below are some fundamental distinctions between the group and individual health insurance.
Differences Between Group and Personal Health Plans
| Factors to Consider | Group Health Plans | Personal Health Plans |
| Policy Duration | The provider/employer decides the coverage benefits and other parameters for employees and can be cancelled by the employer at anytime. | The decision to keep the plan going or not is up to the policyholder. |
| Coverage | All group members receive the same coverage as the employer mentioned. | The policyholder has the option to alter the policy's coverage. |
| Premium | In some cases, some amount is deducted from employee’s salary directly. | The individual pays the premium amount. |
| Medical Check-ups | No prior medical examinations are required for a specific coverage. | A medical exam is a prerequisite for purchasing personal health insurance in some healthcare plans. |
Since the employer bears the expense, group health plans are far less expensive than individual health insurance plans. As a result, this plan is ideal if you do not have any specific health coverage needs because it covers unexpected medical or hospital costs. However, in an Individual health insurance plan, you have the freedom to customise the coverage benefits for yourself and alter them the way you wish to up to the policy’s limitations.
Investing in an Individual health cover as soon as possible can save you in future due to medical emergencies. If you delay buying an individual health policy, and during this time, you are diagnosed with an ailment like hypertension, then it could become challenging to get affordable coverage under a regular healthcare plan. It is because health policies usually come with a higher premium and waiting period for pre-existing health conditions. Getting health cover after you reach a certain age becomes challenging, and you may have to go through procedures that could cost you a fortune.
To Sum Up
In India, most families depend on their savings or employer-provided health policies. The number of people covered under individual health insurance plans is still low, and there is a need for greater awareness. The growing cases of diseases are alarming and rising healthcare costs make everything even more troublesome during unforeseen emergencies.
An individual health plan comes with a lot of benefits apart from hospitalisation cover. Such policies will also offer benefits like:
- Cover for pre-and-post hospitalisation medical expenses
- Annual Health Check-ups
- Ambulance Cover
- No Claim Bonus
- Automatic Recharge of Sum Insured
When it is about protecting you and your loved ones against a financial burden, choose the health insurance policy that comes with maximum coverage benefits. Visit the website of Care Health Insurance and select a plan depending on your individual or family needs. Choose ‘Care’, which is a comprehensive health cover and avail cashless treatment facility at over 19000+ cashless healthcare providers.
Choose wisely between individual and group health insurance plans. For the health of you and your family, pick Care Health Insurance.
Disclaimer: Because conditions may change, please read the prospectus and booklet for additional information about the benefits of our health insurance products.