How Is Group Health Insurance Different From Individual Health Insurance?

Purchasing health insurance has become one of the top priorities nowadays. But when it comes to purchasing it, it is difficult for the individual to decide which one is suitable for them Group health insurance or Individual health insurance. Apart from this, choosing between them is not just a paper work decisions, but it is all about how you are securing your health care needs, which suits you best. Hence, understanding the key differences between group health insurance and individual health insurance ensures you are not left uncovered when it matters the most.

While both these types of health plans may offer similar coverage, they are not the same. Read ahead to understand the difference between group health insurance and individual health insurance.

What is a Group Health Insurance Plan?

A group health plan covers the medical expenses incurred by a group of people. This type of insurance is usually purchased by employers or cooperative societies to offer to their members. It covers multiple people under a master health insurance plan, more often, potential employees or sometimes their families.

The following are the aspects what makes it unique:

• Lower Premium: Risk is shared among a large group of people.


• Immediate Coverage: Waiting period may be waived, particularly for a pre-existing medical condition.


• No Healthcare Screening Required: Most plans skip pre-policy medical screening of insured individuals.


• Limited Flexibility: You may not be able to customise your plans by adding on or increasing the sum insured.


• Ends with Employment: You are not eligible to claim the sum insured after leaving the organisation.

What is an Individual Health Insurance Plan?

An individual health insurance plan is a medical plan specifically designed to cover an individual's healthcare expenses. This plan particularly caters to the healthcare needs of the insured individual. The coverage of individual health plans is exclusively for the individual insured person and cannot be extended or shared with any family members or group members. Due to this reason, it is generally referred to as personal medical insurance. You can select the coverage amount, add-ons, and the insurer.

Below are the unique aspects of an individual health plan:

• Customise coverage amount: You can customise your plans to suit you best.


• Add-on Flexibility: You can enhance your health plans through add-ons to cover critical illnesses, maternity benefits, and more.


• Potability: Your health plan stays with you no matter where you work.