Individual and Group Health Insurance – What Are the Main Differences?
Health insurance is becoming more and more popular nowadays as people are more health conscious and medical cost is getting higher and higher. Although many people have started to subscribe to this particular insurance, in fact, they are not really familiar with their policies. In general, many people don’t know the main differences between individual and group insurance. Let’s learn about it.
Individual Insurance is a policy that you purchase from an insurance company on your own and not through an employer to cover your health. You can choose coverage either for your own or including your family. Even you have pre-existing conditions, some insurance companies still provide coverage to you. Since this policy is covering you alone or just including your family members, the premium is usually higher and more expensive compared with the group plan.
On the other hand, Group Healthcare is one type of health insurance that covers all eligible people in a group regardless of their age or physical condition. In United States, group health insurance is generally purchased by the employers to cover their employees. Different from individual plan, this insurance can be offered by other organizations such as professional and trade associations, unions, social or civil groups and local governments. Basically, the premium is relatively lower than individual policy because it is based on a group of people who have the similar job base.
The group healthcare policy is basically using the employer based concept. Even the law requires the insurance companies to cover everyone who works for the employers that subscribe the policies; it is not in favor to employees who have pre-existing conditions. In other words, although you have been covered under a group plan, your pre-existing conditions are not covered. Besides, there is also no assurance that the employees are covered by the policy once they are retrenched by the employers or they have resigned from the company.
When someone is switching from group health insurance to individual one, the most obvious difference is the increment of the premium. As a result, It is important for you to understand the differences between both policies before making your decision in choosing either group or individual plan to enjoy better coverage for a more secured future.
or more information about individual health insurance plan and health insurance plan, visit CommonHealthInsuranceFacts.com
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