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Health Insurance 355 views October 12, 2020
The purpose of buying health insurance is to get financial cover for any disease or ailment you might get affected with in the future. And there is a wide range of health insurance plans in India. Today, in this post, you will know which health insurance plan is better: a Group Health Insurance plan or an Individual Health Insurance plan. First, know the definition of both. A group health insurance plan is provided to you by an employer or association, whereas you buy individual health insurance for your own. Now you know the basics, so read this post and know the difference between the two health insurance plans.
Table of Contents
In a group health insurance plan, your employer gives you the following benefits:-
If due to unemployment or any other reason you can’t get coverage from your employer anymore, you should buy an individual health plan.
Unlike group insurance, you’ll buy this individual health policy for you. It will allow you to make all your premium payments monthly and get the cover as per the sum insured.
Cost:- The premium of a Group Health Insurance is lower compared to Individual Health Insurance because the policy is given to the employee at low or no cost. If you buy something in bulk, you will get a discount. A Group Health Insurance policy works just like that. Employees don’t have to pay an additional fee for the policy unless anyone in the group buys additional coverage in the policy.
Also, it is convenient for the policyholder as the premium amount gets deducted from their salary each month without any hassle. Whereas in an Individual Health Insurance you have to pay the premiums separately. To ensure no payment delay in an individual health plan too, you can have the automatic payment activated for health premiums on your bank account. With this, the premium will get deducted automatically from the bank account. All you need to do is have the required money in the account. You will get alerts about the premium payment on your registered mobile number and email address.
Approval:- Your Individual Health Insurance Policy may be denied due to medical or financial reasons, but this can’t happen in the case of a Group Health Insurance policy. Because if you are an employee of the company, you become automatically eligible for it. And the process of underwriting in Group Health Insurance where the insured is examined closely in terms of medical history is sometimes waived off by the insurer.
Freedom:- You might not get any freedom in a Group Health Insurance plan. Other than you, there are other insured people, that is why the terms and conditions cannot be amended. On the other hand, in an Individual Health Insurance plan, you have the freedom to choose the policy that suits you the best. And the policy will depend on your personal medical history, financial and social status rather than spreading over a group of people.
Bonus:- In a Group Health Insurance plan, if you don’t make any claim in the previous year, you will not be eligible for any bonus. On the other hand, in an Individual Health Insurance plan, you can get a ‘No Claim Bonus’ that can appear in the form of a discounted policy renewal, increment cover, or no additional cost benefits.
Sum Insured Exhaustion:- When anyone in a group claims under the Group Health Insurance Plan, the overall cover will be reduced. And if the employer doesn’t agree to pay the premium for the Group Health Insurance plan to increase the sum insured, it stays at the level where it was previously, which could cause inconvenience to other insured people.
In an Individual Health Insurance plan, if you make a claim, it would be reduced from your sum insured, and later you can manage it by making the monthly premium payment without any hassle. This helps make your plan stable and secure you from further health risks as well.
Coverage:- You get coverage for the Group Health Insurance plan as long as you are employed or if the employer is paying the policy premium. However, if you resign or retire from the company or organization, you have an option to convert the Group Health Insurance plan into an Individual Health Insurance plan.
However, the Health Insurance plan conversion should be done when you agree to pay a higher premium. Because conversion premium is typically above the premium amount that a new individual gets in an Individual Health Insurance plan. So, convert your Group Health Insurance plan only if it suits you.
In an Individual Health Insurance plan, you can get coverage for 1 year and can renew it as long as you want.
If your choice is a Group Health Insurance Plan, after reading this post, these are some of the top plans for you!
If you want to have individual health insurance plans, choose from these best options available for you. Here is the list of best plans