Group Health Vs. Individual Health Insurance: What is the right choice?

ShiftRisk Team
November 8, 2022

Do you know why you should consider taking health insurance?

A medical emergency can easily wipe out your hard-earned savings. Having health insurance can help you save on such emergencies, which will help you focus on building a long-term corpus for your future needs.

Have a confusion: what weighs better, individual health insurance and group health insurance policy?

Let us understand each type individually and then decide as you finish reading.  

A group insurance policy is typically offered by employers to their employees. Individual health insurance plans are available for anyone to purchase, geared toward providing personalised coverage options.

In this article, we'll explore the differences between individual and group health insurance and help you decide which plan is right for you.

What is group health insurance? What is individual health insurance?

Group Health Insurance

Group health insurance is a type of coverage that provides protection for employees and their dependents. It provides various coverages that range from mediclaim for a family to accident coverage. Group health insurance is designed for the employees of an organisation. It is a group plan where employees and their dependents are under a group plan. The costs are evenly distributed among them.

Group health insurance is typically offered by companies as corporate health insurance as part of an employee benefits package. This type of coverage usually comes at little or no cost to employees

Individual health insurance

Individual health insurance is a type of coverage that provides financial protection against medical expenses incurred by an individual during their life. Individuals may purchase this coverage directly from an insurer or through an employer as a benefit of employment. Individual health insurance policies are best for people who do not get benefits from their employers and those looking for a higher sum assured.

An individual plan is ideal for someone who does not have access to group coverage through an employer or spouse. An individual plan can be purchased as a stand-alone policy or as part of a family floater plan that includes other dependents such as children or grandchildren. 

Difference between Group Health Insurance and Individual Health Insurance plan

The main difference between these two types of insurance is that group plans work like an employer-sponsored program where you pay an amount each month into an account that will help cover your medical costs when needed. In contrast, individual health insurance requires you to pay out of pocket for any medical expenses you may incur during the year or pay a deductible before your insurer starts paying for your care.

So the question may arise in your mind, what plan is right for you? 

The answer to this question is both simple and complex. The simple answer is that it depends on your situation. The complex answer is that it depends on your situation and how you want to approach it. 

If you have a pre-existing condition, it can be difficult to get group coverage if your employer doesn't offer it or if they do but don't offer coverage for that condition. If you are not working with a corporate, or your company does not offer a group health insurance policy, then the only option is to go for an individual insurance plan. If the need and situation be, you can convert it into a family medical policy, popularly known as a family health floater policy.

We understand that the market has a pool of health insurance products available as per your need, but still, the decision is a daunting task. Trusted Insurance Brokers like ShiftRisk Insurance can dedicate an expert to you who can guide you and help you buy the right type of insurance plan after mapping your needs.

Book your appointment with us now!
Written By:
ShiftRisk Team