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Choose Group Health Insurance Or Buy An Individual Health Plan

There are various types of health insurance policies, so pick the one that best meets your needs. Group health insurance and individual health insurance are two of the most widely used types of programmes. Although the coverage provided by various policies may be of the same character, what differentiates them is who is allowed to use it. Let’s examine the variations between business group health insurance and personal health insurance carefully:

Compared to individual health insurance, group health insurance provides coverage for a number of individuals who are connected to one another by at least one common bond. For instance, coworkers in the same company or blood relatives. It provides health coverage for several individuals. However, the policyholder of an individual health insurance plan is the only person it protects.

Here is a table that compares individual health insurance policies to employee group health insurance:

Parameter  Group Health Insurance  Individual Health Insurance
General meaning A group of people are insured under a group health insurance plan. The holder of an individual health insurance policy is protected.
Who is insured? The insured person and related family members. Only one person, i.e. the policyholder.
Who is the purchaser? The typical purchaser of group health insurance is an employer (or, in the case of the Family Floater Insurance Plan, the primary family member). Purchase of an individual health insurance plan by the insured.
Claims: Typically, claims are submitted by a third-party administrator. Direct claims can be filed with the insurance provider.
Eligibility Criteria: Should be a permanent employee of an organisation Must be at least 18 years of age
Option to buy Add-ons: None or limited The policyholder can buy any of the available add-ons.
How much control does the insured have over the plan? Limited control (The plan’s coverage and add-ons are under the employer’s or the purchaser’s control). Complete control (The policyholder fully controls the plan’s add-ons and coverage).
Available Sum Insured: Comparatively cost-effective to individual health insurance. might range from 5 to 10 lakh rupees. Option to select larger insurance amount than what is covered by a group health plan. It may range from 5 to 15 lakh rupees.
Cumulative bonus: Not Applicable Applicable*
Medical Check-ups before purchase: Not required Required
Tax benefit: No Yes**
Coverage for Pre-existing diseases: Mostly from day 1 After the completion of the waiting period.
Exit criteria: When an employee retires or leaves the company, the insurance plan is no longer in effect. The policyholder turns 65 years old (the exit age is determined by the insurance company’s rules).
Maternity Benefits: Covered Need to be purchased under add-ons.
Coverage for Critical Illness: No If chosen by policyholder

Health insurance policies for individuals and groups range in their benefits and objectives. To ensure enough financial support in times of need, one should always purchase health insurance as needed.

* Standard T&C Apply

** Tax benefit is subject to change in prevalent tax laws

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.