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Employer Health Insurance vs Individual Health Insurance Plan

Published On Aug 16, 2021 12:00 PM By InsuranceDekho

Health insurance providers have rolled out different types of health insurance plans to cater the requirements of different groups of people in the society. Most health insurance plans come with basic features like hospitalization charges, ambulance costs, medications, checkups, room rents, and much more. But, some health insurance covers like group health insurance, maternity benefit cover, critical illness plans, senior citizen plans, etc. come with unique and exclusive features for the specific customers. The premium rate of the health insurance covers differ from one insurer to the other and depends on factors like type of plan chosen, sum assured, number of members included, etc.

Individual health insurance plans are meant to insure a single individual under a comprehensive plan at an affordable price, and on the other hand a group health insurance cover also known as the employer health insurance plan covers a group of people working together in a company, organization, or employer. Both the types of health insurance plans serve a similar purpose of providing medical compensation to the policyholders at the time of emergency but slightly differ in certain features.

Employer Health Insurance vs Individual Health Insurance Plan

About Individual Health Insurance Plans

An individual health insurance plan covers the medical expenses of a single individual insured under the policy. It provides benefits and comprehensive features of a single person. The policyholder has complete control over the coverage of the plan and it can also be customized by the customers according to their needs and demands. Along with the base health insurance plan, various add-on covers are also made available for the choice of the customer. Some of the basic features that are included in the plan are hospitalization costs, tax deduction benefits, critical illness plans, no claim bonus, and a lot more. Let us look at some of the prominent benefits of having an individual health insurance plans:

  • It offers wide and complete coverage to a single policyholder.
  • Customers can customize the plan with ease.
  • Tax deduction provisions under Section 80D of Income Tax Act.
  • No claim bonus is offered for every claim-free year.
  • Lifetime renewability of services are provided by the insurer.

About Employer Health Insurance Covers

An employer health insurance plan also known as group health insurance cover insures a group of people working under an employer, organization, or company. The insurance policy is valid only until the person is a working employee of the organization. As an employer it becomes a responsibility to look after the employees and workers of your company so that the output and human capital is not affected due to medical reasons. The coverage of a group health insurance differs from one employer to the other, it usually covers the employee and his/her family. The employer has little to no say in the coverage of the plan and it offers no tax deduction benefits along with the no claim bonus. Maternity benefit is offered to the female employees by the employer. No pre-medical checkups are required to get insured under a group cover unlike the individual health insurance plan. Following is the list of benefits offered under a group health insurance cover:

  • The cover is flexible and meets the demands of the customers.
  • No pre-medical health check up required before purchasing the policy.
  • Wide range of coverage with an inclusion of several diseases.
  • Coverage for pre-existing diseases from day one, that is with a waiting period of one day.
  • Maternity benefit coverage is provided along with coverage for the newborn baby.
  • The premium is affordable and lower when compared to the individual health insurance plan.
  • It provides its policyholders with the best medical facilities in private hospitals.


These days, a person can be covered under multiple health insurance plans and therefore, the plan should be bought according to one's needs and requirements. If the group health insurance plan is sufficient to cover your medical expenses, you need not buy a separate health insurance plan. But, in case of critical disease, it is better to invest in a separate health insurance cover, as the coverage of the group health insurance can be insufficient to meet your medical needs. You must carefully read the terms and fine print of the cover to avoid any inconvenience at the time of claim settlement process.

Also Read: Do You Think Your Employer's Health Insurance Is Enough

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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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