Individual health insurance scores over group health insurance

Health Insurances 209 views

In the days of growing diseases and rising treatment expenditure, it has become elementary to buy a health insurance policy. But before you choose the policy, you must keep an eye on the coverage ratio, premium amount, claim settlement track record of the insurer, sub-limits, etc. One can choose from individual health insurance plan, group insurance plan, family floater plan to name a few. You should first assess your requirements and then compare the different policies to come out with a one that can serve your purpose. In this article, we will compare two plans-Individual Health Insurance and Group Health Insurance. First, we will discuss both the insurance plans individually. And then we will step on to compare them.

Individual Health Insurance Plan

As per the individual health insurance plan, the policyholder gets the cover against the expenditure incurred on illnesses, hospitalization, etc.

Salient Features

  • The plan covers medical expenditure for the insured individual only.
  • The plan covers the expenditure on the basis of premiums that are paid.
  • The policy offers cover for hospitalization charges like room rent, laboratory tests, doctor's fee.
  • Cover for pre and post hospitalization expenses.
  • Cover for critical illnesses.
  • Offers tax Deduction under section 80C of the Income Tax Act.

Group Health Insurance Plan

Group health insurance plan is offered to a community or a group. Typically, these insurance plans are given to the employees of a company. In some cases, these plans provide coverage for the family members of the company's employees.

Salient Features

  • Some group health insurance plans provide coverage for boarding expenses in addition to the fees of consultants, anaesthetists and surgeons, as well as costs of oxygen, diagnostic materials, x-rays, dialysis, etc.
  • Group insurance plan offers cashless facility and allow bill settlement directly with the hospital.
  • You can also get maternity benefits
  • The plan provides coverage for pre and post hospitalization charges for a particular period
  • The plan also offers cover for day care procedures not requiring hospitalization for more than 24 hours, such as eye surgery, chemotherapy, dental operation, etc.
  • Some group insurance policies provide cover for pre-existing diseases after the payment of additional premium.
  • You can get enhanced coverage for some critical illnesses as well as enjoy waiting period waiver.
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Comparison Between Individual Health Insurance and Group Health Insurance

Factors Individual Health Insurance Group Health Insurance
Cost Costs more as different covers can have higher amount of charges. The premium will have to be paid separately. Cost less as employees do not have to pay additional fees unless one choose additional benefits that are not available to the group. The premiums are deducted from the salary.
No claim bonus You get the benefit of no claim bonus if you don't make a claim in a particular year. With no claim bonus, you get the discount on the premium for upto 50%. No claim bonus benefit is not available even if you do not make a claim in a particular year.
Convenience You may get denied the insurance on the ground of medical and financial history. Every employee of the company is eligible for insurance and approval for the same is granted automatically.
Applicability It remains valid till the time you are with the insurer. It continues till the time you are working with the company.

Even though the costs can be saved greatly by group health insurance plan, individual health insurance should be there with you as it allows you to choose the cover that you want. With individual plan, you can take a call on taking cover for critical illnesses based on your as well as your family's medical history. Also, you can decide on the sum assured with individual health insurance plan. As explained in the table, the benefits of group health insurance is limited to the time frame you are with your company. And not all the companies offer group health insurance plans. So, it becomes elementary to have an individual health insurance plan.

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