Individual Health Insurance or Group Health Insurance - Concept, Differences & More

Published On 27 Feb 2020 By Yamini Sharma

Individual Health Insurance or Group Health Insurance - Which One to Choose?

Need to make a health insurance decision?

Do you have two choices at hand?

Is selecting between individual health insurance and group health insurance making you confused?

Buying health insurance is not tough for customers who know their specific medical requirements well.

If you are aware of both the concepts and their details, it won’t take much effort to come to a conclusion. 

However, if you are new to the terms individual insurance policy and group policy, read this below information carefully so that you know what type of policy will suit your needs perfectly. 

Individual Health Insurance -

Individual health insurance meaning 

True to its name, individual health insurance policy or individual insurance policy is an ideal choice for individual investors. Note that the individual investor can purchase the policy for themselves or their family, based on their requirements. 

Many customers make the wrong choice thinking that individual health insurance is perfect for a single person only. However, that’s clearly not the case. Individual health insurance comes with multiple benefits that serve the medical needs of individual investors as well as their families without any compromise. 

Individual health insurance benefits 

  • Good choice for individuals with high health risks

  • Benefit of adding parents and other immediate family members 

  • Higher protection than the offered security under family floater plan

  • Sum insured benefit rather than floating sum insured

  • Policy renewal without age restrictions

Group Health Insurance -

Group health insurance meaning 

Group health insurance or group policy is the policy provided to a group of members, usually company employees or members of an organization. 

Companies or organizations buy group health insurance plans and then offer to members or employees. According to its name, group policy can only be purchased by groups, thereby preventing the individuals to get covered under this plan. Though beneficial for both, employers and employees, group health insurance is an excellent solution for employees to get themselves covered for various medical expenses.

Group health insurance benefits 

  • Increased employee satisfaction

  • Better health benefits for employees

  • Default health cover for those who can’t afford the premium

  • Affordable health insurance for employees

  • No requirement for pre-medical screening

  • Quick and hassle-free claim settlement 

Group Health Insurance vs Individual Health Insurance 

Individual health insurance and group health insurance are quite different from each other. Each has its own advantages that can be made the most of on making the right choice. 

So, if you have not been able to reach a final decision regarding going with group policy or individual insurance policy, read the differences carefully to identify which one out of the two is the best for you. 

Difference between individual health insurance and group health insurance

  • While in group policy, the premium is quite low and borne by the employees (deducted from salary), in case of individual insurance, the premium is higher and borne by the individual insured.

  • While in group policy, the employers hold the contract, in case of individual insurance policy, the contract of insurance remains with the policyholder.

  • While in group policy, the company holds the power to cancel the policy, in case of individual insurance policy, the policy cancellation power lies with the insured individual.

  • While in group policy, the coverage is provided as long as the employee is a part of the organisation, in case of individual insurance policy, the employment tenure has no connection with the coverage. 

  • While in group policy, employees have to choose the pre-defined plans, individual insurance policy gives an advantage to the insured to choose the different policy terms, such as premium amount, coverage, number of family members to be covered, etc.

  • While group policy coverage is dependent on the financial strength of the employer or organisation, individual insurance policy coverage is based on an individual's age, medical history, and other factors. 

  • While group policy does not encounter an increase in cost with increase in age, in case of individual insurance policy, the policy cost may increase with age.

  • While group policy does not come with a need for pre-policy medical checkup and is easier to attain, individual insurance policy requires the insured to undergo medical tests before the cover being granted. 

  • While group policy does not come with the benefit of no-claim bonus (if unclaimed), individual insurance policy gives the benefit of no-claim bonus if no claim is made during the entire tenure.

  • While group policy does not come with or provides limited security when the employee is changing jobs, individual insurance policy provides complete security to the insured during this transition.

Related : Health Insurance at an Early Age? Discover the need for it!

Individual health insurance or group health insurance – Which one to choose and how?

The difference between group health insurance and individual health insurance must have lessened your concern of buying the ideal one for you. 

As far as making the perfect choice is concerned, remember that both are significant in their own way. 

If talking from premium point of view, a group health insurance policy would be better as it will cost way more less than individual one. 

However, if considering the coverage aspect, an individual health insurance would be better as it will provide you cover for your exact requirement and choice. 

If short term coverage (as long as you are in your company) is fine with you, choose group health insurance. On the contrary, if you want an insurance policy to cover you for a long period of time, go with individual health insurance. 

If concerned about life post retirement, choose an individual insurance policy today itself so that health issues that you may have in later years are covered without any hassle. 

Last but not the least, it is advisable to choose an individual health insurance policy even if you have a group health insurance policy


So that you can have the best of what both have to offer. By choosing both, you won’t find yourself with the regret of not purchasing the other one in the later run. 

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If willing to go ahead with both the insurance policy types, make sure you pay more emphasis on the purchase of individual health insurance. 

Since you cannot control the policy offered by your organization, it would be better to take the power in your hands while looking for the best individual health insurance that caters to your requirements perfectly. 

If having any issues regarding individual health insurance options, calculation of premium, or any other aspect, feel free to call our experts at 18001205698. 

We, at InsuranceDekho, would be happy to offer the desired support! 

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