Individual and group health insurances provide similar coverage but still they have many differences. Let’s take a look at the differences.
Group insurance package is bought by organizations for the benefit of their employees. There are two types of insurance that an organization can plan.
- Self-insured plan
- Preplanned insurance policy
Individual insurance plan is bought by an individual. An individual can either buy it for himself or for a group of people.
The cost of group insurance is low and an employee may or may not have to pay something. Even the organization can get a discount if it is buying insurance plan in bulk. The employees do not have the burden of paying anything but if they want additional benefits, then they can pay additional amount. In individual plans, the individual has to pay the premium for him or the group.
An individual insurance plan has the risk of non-acceptance of the insurance plan due to his financial status while the group plan has no such issues. The group is granted the approval automatically. One benefit of the individual policy is that he has the freedom of setting the terms and conditions and he can also discontinue it in future.
No Claim Bonus
An individual has the benefit of no claim bonus if he does not make any claim in the tenure of policy. Such a case is not with the group policy.
Both of them have their benefits. But individual policy is difficult get especially after the retirement.