Group Insurance vs Individual Health Insurance

Investing in a health insurance policy has become the need of the hour. You may consider purchasing a health cover to prevent out-of-pocket expenses in case of a medical emergency. Such a policy provides protection against rising medical inflation and secures your financial well-being.

There are numerous types of health insurance plans available in the market. It is necessary to compare the features and benefits of various options and choose the plan that is best suited to your needs.

The two most common types of healthcare plans in India include an individual policy and a group health insurance policy.Following are six aspects that differentiate the two types of health insurance plans.

  1. Meaning

As the name suggests, individual health plans offer coverage to the individual. You may either purchase such a policy for yourself, spouse, children, or dependent parents. Group insurance, on the other hand, covers multiple individuals in a single group. An example of such a policy is corporate health plans, wherein numerous employees are offered coverage by a single employer. It is important to note that all the members of the group enjoy the same benefits under the corporate plan.

  1. Requirement of medical tests

Most individual policies require you to undergo medical tests. Based on any medical condition or pre-existing ailments, the insurance provider may decide whether to cover you or not. Besides, insurance providers may levy a higher premium, in case you have any pre-existing ailments. A group mediclaim policy, however, does not require you to undergo medical check-ups.

  1. Cost

While comparing the two types of health insurance, you may note that individual plans come with a higher premium cost than group plans. Since multiple individuals seek cover under a single plan, insurance providers offer discounts in the form of lower premium rates. The premium for a group health insurance policy is generally deducted from the monthly salary of an employee, unlike individual plans, where the premium amount is paid separately.

  1. Customization

Individual plans may be customized according to your needs. You may opt for a higher sum assured amount if you wish to do so. Besides, you may enhance your coverage by choosing various riders. A group mediclaim policy, on the other hand, does not allow for such customized features. You will be entitled to enjoy the same benefits as the other members of the group.

  1. Period of coverage

Individual health insurance plans offer coverage from the time of buying the policy until the completion of the policy tenure. On the contrary, in the case of a corporate group plan, you may avail of the benefits only until you are employed with the firm. You cease to enjoy health coverage in case you are terminated from the position or if you switch your job. Therefore, it is advisable to purchase an additional policy along with your group plan to enjoy uninterrupted benefits.

  1. No Claim Bonus

No Claim Bonus is a type of reward offered to the policyholder for not making any claims in the previous policy year. The insurance provider may provide a discount on your next premium or may offer higher coverage at no additional cost. Such No Claim Bonus is generally offered on individual plans. A group health insurance policy, however, does not give you the benefit of No Claim Bonus.

Individual plan or group plan: Make the right choice

A group health plan comes at a cheap rate and offers coverage during medical emergencies. However, such plans do not allow you to choose your sum assured or the level of coverage. Hence, you may buy a group health insurance policy, but supplement it with an individual plan. By doing so, you may seek enhanced coverage and enjoy financial security at all times.

About the author: kevin

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