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Individual Health Insurance vs. Group Health Insurance

Published On Mar 15, 2022

Individual Health Insurance Policies provide coverage for a single person and provide a variety of features and benefits. A group health insurance plan can cover a large number of people by distributing the plan's coverage evenly among the organization's beneficiaries. A firm, organization, or employer will typically obtain group health insurance for their employees to shield them against the exorbitant costs of medical treatment. A group health insurance plan has a lower premium than an individual health insurance policy.

Individual Health Insurance vs. Group Health Insurance

Individual Health Insurance Plans

A single person is covered by an individual health insurance policy, and the entire sum assured under the acquired policy is dedicated to that single policyholder. It comes with a wide range of perks and features that can be tailored by the insurer to the policyholders' specific needs. In the event that a customer develops a serious illness, an individual health insurance plan is quite beneficial because it provides sufficient coverage for a single person for high-cost treatments, which a group health insurance plan does not. Let us have a look at some of the most important characteristics and advantages of an individual health insurance plan:

  • This plan provides a single person with exclusive and comprehensive coverage.
  • Customers will find it reasonable and cost-effective because it covers the costs of severe illnesses.
  • It allows you to deduct tax benefits under Section 80D of The Income Tax Act.
  • Customers have the option of personalizing their policy coverage to meet their specific needs.
  • For each claim-free year in a policy term, policyholders do not receive a bonus.

    A family member who is more likely to get a serious or life-threatening sickness must have their own private health insurance coverage to cover medical costs in the event of an emergency. This aids the individual in overcoming their financial difficulties and preventing them from depleting their financial reserves.

    Group Health Insurance Plans

    A group health insurance plan is a health insurance policy that covers a group of people who work for the same firm, organization, or employer. Employers acquire these plans to shield their employees from the high costs of medical treatment and prevent them from depleting their savings. In the insurance sector, it is also known as a corporate health insurance plan. It covers expenses such as hotel rents, ambulance charges, hospitalization costs, healthcare checkup prices, and so on, giving employees a wide range of advantages. Employees' family members, such as the employee's spouse, children, and dependent parents, are also covered under group health insurance policies. Let us have a look at some of the most popular characteristics and advantages of group health insurance policies:

    • The Group Health Insurance Plan is bought in the company's or employer's name.

    • The policy is based on employment, and employees can use it as long as they are employed by the company.

    • This policy does not become more expensive as the applicant's age increases, and it is less expensive than an individual health insurance plan.

    • Before purchasing the policy, the policyholder is not required to have a pre-medical health checkup.

    Take Away

    A Group Health Insurance Policy provides adequate coverage for medical emergencies for policyholders and their families, but not for the treatment of serious illnesses such as diabetes, cancer, or hypertension. If you or any of your family members require a large sum assured for the treatment of their diseases, you should invest in a good Individual Health Insurance Plan.

    Also read: Understanding Health Insurance Policies in General

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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