Which is Better: Individual Health Insurance and Group Health Insurance
Group health insurance is preferably the best deal for people or corporate employees working in an organization. It will in return benefit the relatives or family members of the employee for instance. Whereas, individual health insurance is something that you can benefit from.
No wonder in this fast-growing world, everyone needs coverage to aid their financial constraints in times of urgent need. Here is what health insurance comes into play, whether it’s an individual health plan or a group health plan.
What is Group Health Insurance?
A group health insurance is a plan that provides coverage to a group of people or the people related to the policyholder under the same/single plan. It offers medical coverage to the policyholders with hospitalization, medication, doctor’s consultations, etc.
What is Individual Health Insurance?
Individual health insurance offers medical coverage to the only individual who has purchased the health insurance policy. In this kind of policy, if a policyholder chooses to add any additional riders to his/her policy, the sum insured will be enhanced.
What is the Difference Between Individual Health Insurance and Group Health Insurance?
There are multiple differences between individual health insurance and group health insurance, let’s embark on a few of the common dissimilarities between the two:-
|
Aspects |
Individual health insurance |
Group health insurance |
|---|---|---|
|
Add-ons |
As many add-on riders as you want |
Either none or limited riders allowed |
|
Claims |
The policyholder can directly make a claim to the insurance company |
A third-party administration is responsible for claiming on the policyholder’s behalf |
|
Sum Insured |
You get the freedom to choose the sum insured, which varies from 5-15 lakh rupees |
The sum insured is comparatively lower than the individual plan, varies up to 5-10 lakh rupees |
|
Exit |
The exit age varies from company to company, but mostly the exit age is 65 years |
After leaving the organization or retiring, the policy ceased |
|
Tax Benefits |
Yes |
None |
Pros and Cons of Group Health Insurance
Group health insurance is good for sharing a protective net with all the adjacent members covered under one policy. But it has its own set of limitations on the other hand, take a look at this table showcasing the pros and cons of group health insurance:-
|
Pros of Group Health Insurance |
Cons of Group Health Insurance |
|---|---|
|
Lower premiums compared to individual health insurance |
Lesser sum insured than an individual health insurance plan |
|
Cashless claims can be made at the network hospitals |
Claim is delayed which means the disordering of the benefits and claim settlement ratio |
|
Dependants get medical coverage |
Coverage is inadequate for every participant in the group |
|
CSR policy comes into effect to present a positive picture of the organization. |
Coverage would be discontinued after a specific time |
|
Additional benefits like pre-existing diseases and maternity benefits are covered in the policy |
Does not provide personal financial support and planning |
|
Tax benefits to the company on payable revenue |
Lack of flexibility as every member of the policy will get an equal share of benefits, hence to maintaining an adequate sum insured is nearly impossible |
Conclusion
In this changing era of health discrepancies, everybody needs to understand the core of health-related requirements at the early stages of their lives. It not only helps them get the best out of what we call prominent solutions to all our health-related issues.
At times, we won’t get enough support from our predefined means of income sources, here is what group health insurance and affordable individual health insurance come into action. Get the most efficient solution to all your queries on a call with our customer care executives at Policyx.com.
