Know the Real difference between individual VS group insurance

There are so many health insurance and group insurance plans that have different coverage. Of course, the premiums for the same can vary. Being a first-time user, you must surely be wondering which is the best possible solution for you and your family’s protection.

This post is to inform you about group and individual health insurance and show you how each one of them can be good or bad in their own respective ways. Get to know the difference before you make a decision. After all, it is for the protection of you and your loved ones against unforeseen events.

Health insurance plans can be customized. To choose the right one, it is always important to focus if it covers medical expenses. Other than this, health plans also fall under different categories such as personal health policy and group health policy.

When the coverage is organized by the employer for most of the employees’ group and it is of family health insurance then over personal one it is any time affordable. But the common aspect between them both offers emergency hospitalization protection.

If you are focused more on the group and individual health insurance, listed are some of them that you need to understand clearly. This is important to make sure you come up with the right decision and thus secure the future of your loved ones at the financial level

Know more about health insurance Plan

Many people are often under the misconception that health insurance and accident insurance are the same. But these are different concepts, as is accidental death and dismemberment in insurance which would be covered by certain life insurance policies.  Health insurance is a contract between the insurance company and the policyholder. In this, the latter is ready to pay the former for different medical expenses that are covered for her or him.

The company will offer either the cashless treatment or the reimbursement solution towards the entire expense. The insured party will also get tax exemption for the paying premium towards the policy. To make the right use of this policy, the insurance holder needs to do the payment regularly.

The company thus will ensure that the insured party gets the necessary financial support in case of medical expenses or unforeseen emergencies that may occur. The best part of such a policy is that it does not have a waiting period.

Know more about Group Health Insurance Plan

Moving further, if we talk about the group health insurance, well it is given by the employers for the individual in a group who are working in the same organization. The employees are eligible to get coverage for their family members along with themselves.

There are some of the plans that also cover the insurance of the group for the employees to make sure whether it is according to price, hospitalization, consultant fees, or the diagnostic material charges, everything is rightly taken care of.

The insured party can settle the bills directly at the hospital as the facility of cashless is available. It also covers the pre and posts hospitalization expenses for a certain time. Some also get the maternity advantages on the policy while the hospitalization coverage for eye surgery, chemotherapy, and even the tonsillectomy is possible too.

In case there is a certain ailment that needs further hospitalization then extended coverage is possible too. The coverage for the pre-existing ailment after the extra premium being paid is possible too. This increases the waivers for the waiting period, the first year to be excluded and even the reimbursement of the ambulance cost.

Now what your read above was just a definition of both the plans that you are likely to come across. If it is time for you to make the decision then understand that there are certainly notable differences between Individual and Group Health policy schemes.

If you focus on health insurance, well, the Individual purchases it himself while the group medical insurance is offered by the organization for its bunch of employees working. Other than this, key differences are

  • Duration of the Policy

Group Health Plans is controlled by the provider and it can also be canceled when the member is no more working in that organization. While the Personal Health Plans premium is paid by the policyholder for the plan.

  • Coverage

For a group health plan, there is a uniform coverage which is offered to every member of the group. But the same thing if you consider for the individual health plan well the coverage can be customer depending on the insured party.

  • Premium

In the case, if the premium for the group insurance the amount gets deducted from the salary of the employee directly. For health insurance, it is an individual who must pay the premium regularly.

  • Medical Check-ups

While getting the medical check-up coverage there is no previous process to be followed. But for the health insurance plan, the individuals must do the check-ups done before purchasing.

  • Costs

As per the estimation made in the year 2109, it has been found that the annual premium costs for health insurance are $5,472/year while for the group health insurance it is$7,188/year.

Further, the advantages may vary from individual and group insurance policy. It eventually depends on the employees that are covered under the plan. Although in terms of affordability group health insurance is advised when it comes to availing additional benefits, personal health insurance offers the best.

Photo: Juliane Liebermann, Unsplash