Group Health Insurance or Individual Health Insurance: A Comparison

When it comes to group or individual health insurance, it is always contentious to say which one is more beneficial as both have their own shares of contribution towards the financial market. If you are not new to the term ‘Health Insurance’, you perhaps feel the urge of having a plan that secures your health.

Bur for a newbie, it is good to know how health insurance is a handy choice for meeting all hefty medical expenses during an emergency. Moreover, you can invest for long-term as well, knowing the fact that your health is protected, which otherwise can leave you bankrupt.

Group insurance is when a group of people is provided with medical coverage by an employer or an association. On the other hand, the medical insurance you buy on your own is individual health insurance. No doubt there are N numbers of health insurance places introduced by various insurance companies which might create perplexity in choosing the right plan for you. However, in terms of health insurance, Tata Aig Health Insurance is one of the trusted names in the market. However, before buying one, you should compare both the policies and select the one as per your requirement. Though both provide basic health coverage, there are some prominent differences, which you should consider at the time of buying one. In this article, we try to provide an apparent comparison of group and individual health insurance.

Group Health Insurance	Individual Health Insurance
A group health insurance plan is initiated by the employer for a group of employees.	Individual plan caters to an individual and can be framed as per his needs.
Cumulative risk of all the members is the deciding factor of premium rate.	During the time of determining the premium rate, factors like age, family medical history, health etc. are considered.
The members are part of this plan till the time they work with the organisation.	An individual can choose the plan-tenure as per his convenient.
No member can use the policy for your personal need such as applying for a loan.	This is opened by your name which allows you to use this as an asset to apply for a loan.
The service provider can cancel your coverage at any time. It is the sole controller of the policy.	You can control the policy as per requirement. This will be discontinued only if you give consent.
Medical examinations are not compulsory up to the definite amount of coverage.	At any cost, medical tests are mandatory to open an individual health insurance policy.
Premium is liable t o be deducted from the salary directly.	The individual requires paying the deductibles on given time.
Group policies are to some extent cost effective, can avail maternity facility.	Individual plans are expensive and very few individual plans cover maternity coverage.
You need not worry about pre-existing diseases as your group plan covers them as well. You can file a claim after a waiting period of 30 days.	Pre-existing diseases are covered after 12 months or can exceed more. Again, you can’t make a claim during the waiting period unless it is an emergency.
After your retirement, the group health insurance policy is no use of yours or even you are not a part of this plan than.	You can renew the individual plan each year by paying a minimal premium for a long-term period.

If we compare the benefits of both the plans, group insurance plan seems more effective but only for the time, you are associated with the organisation. Once you leave, there is no use of this policy. So, a stand-alone health insurance place is what we can suggest for you!