Advantages of Group Insurance over Individual Health Insurance


2 min read
18 May
18May
If you’re reading this, you probably know why getting health insurance coverage is a good idea. But if you are new to this; health insurance can help you focus on getting the best medical care, rather than focusing on arranging for treatment during medical emergencies.

A health insurance policy can help you make long-term investment decisions because you know you have solid protection from any medical situation that can wipe-out all your savings. Today, there are plenty of health insurance plans available, as insurers offer a wide variety of health insurance products to make their choices easier for consumers.

What if your employer covered you in a group health insurance policy? Can Group Health Insurance adequately protect you and your family during medical emergencies? Let's take a look at the main differences between group health insurance and personal health insurance.

Pros: Advantages of Group Health Insurance than Individual Health Insurance

Group medical insurance has many advantages over personal health insurance products. For example, you do not need a medical examination before you sign up for group health insurance (though now, HDFC-ERGO issues certain Individual plans the same way). Individual policies require medical insurance information. You will have coverage from the time you join an organization or receive policy papers. Importantly, group medical insurance is often cheaper and costs about a third of stand-alone health plans. You can get maternity benefits from group medical insurance, this most individual health insurance policies does not offer. (
Know about India's most affordable Group Health Insurance)

In addition, the group insurance plan covers all the existing illnesses, which is not included in Individual insurance products. You can also claim within the first 30 days of receiving group insurance coverage, while individual plans only allow you to do so in medical emergency cases.

Insurers often provide an employer with a Relationship Manager to take care of workers' questions and concerns and help with paperwork. Such assistance is not really possible in individual policies. Along with personal health plans, you often need to pay co-pays for dependents over the age of 60. But it is not required for group medical insurance packages. 
(know how to get an insurance with No-Co-payment)

Cons: Limitations of Group Health Insurance compared to Individual Health Insurance

Group insurance policies cannot be customized for individual purposes. Employers may not always offer a better product for the benefit of their employees. They may decide to limit coverage to you, your spouse, and your children, which may not be covered by your parents. Companies with budget constraints are more likely to do this. In such cases, you are often forced to buy personal policies for your elderly parents, which can be very expensive.

There are concerns among employers that employers will withdraw when the need for group medical insurance is met. They may also ask you to pay a premium for a health insurance policy.

It is important to note that your group insurance policy will not be of any help after your retirement. You will then need to purchase a stand-alone insurance policy at an additional cost. The advantage of an individual policy is that you can continue to renew it every year by paying cheaper premiums.


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