Group Health Insurance Plans Vs Individual Health Insurance Plans

With the developmentsin technology, there has been a rise in the number of diseases as well. For most people, treating these diseases has become a challenge in itself. Health is something you cannot ignore andif you do so, you’ll be risking your life. However, you can always invest in a good health insurance policy. One can always choose between Individual Health Insurance and Group Health Insurance plans. Let us learn more about each of these health insurance plans.

Group Health Insurance

Group health insurance is designed for the employees of anorganization, whereinemployers provide them with comprehensive healthcare coverage. These policies even cover the family members of these employees. Basically, Group Insurance plans provide risk coverage to the people that belong to the same organization. Under this plan, all covered parties are addressed and benefitted in a group.

According to the Insurance Regulatory and Development Authority of India (IRDAI), the groups formed can be employer-employee or non-employer-employee. For example, a group of people holding similar savings account of a particular bank, people under a single social as well as cultural association, etc., can enjoy the benefits of this plan as they are a part of a single group.

Individual Health Insurance

As the name suggests, under an Individual Health Insurance plan, medical coverage is provided to one person. Also, the general insurance company can offer coverage as per the needs and requirements of that particular individual. The insured will thus have to pay premiums based on these factors.

Difference between Group Health Insurance & Individual Health Insurance

1. The basic difference is that under a group health insurance plan, coverage is offered to a group of people whereas an Individual plan covers a single person.
2. You cannot customize a group plan after a certain limit andall the employees are offered similar coverage; contrariwise, if you opt for an Individual plan, you can choose add-ons to enhance your coverage as per your healthcare needs.
3. Under a group health insurance, one cannot customize an insurance policy as per the medical conditions of different individuals and the coverage remains the same for everyone in the group. It is not the same with Individual Health Insurance plans and you can make alterations as per your medical needs.
4. Everyone under the group health insurance plan has a single renewal date. Under an Individual Insurance Plan, every individual has a different renewal date that depends on the date of purchase and tenure of the policy.

Lastly, it is your decision whether you need a group mediclaim policy or an Individual one. However, even if the company you work for offers you with a group health insurance, the policy does not offer you sufficient coverage. Hence, it is advised to purchase an Individual plan as well along with the group plan so that you can customize these health insurance policiesand benefit as per your requirements.