Individual Health Insurance vs Group Health Insurance

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Most companies provide you with group health insurance. However, it is always advisable to have an additional health insurance plan. That ensures you have full coverage even after you retire.

There always arises a time when the debate of individual health insurance vs company group health insurance arises. If you are facing the same debate, the below information may help you make a decision.        CLICK TO PURCHASE INDIVIDUAL HEALTH INSURANCE PLAN

Understanding Individual Health Insurance and Group Health Insurance

1. Group Health Insurance

This is a type of health insurance sponsored by the employer and given only to eligible employees. The employee selects the plan, and the premium is divided between the employee and employer.

2. Individual Health Insurance 

As the name suggests, individual health insurance is purchased and covers the employee and their family member. The whole premium amount of the individual health insurance is paid by the insured (individual).


What Are the Differences Between Company Group Health Insurance and Individual Health Insurance?


1. Cost

For individual health insurance, the insured can choose a premium amount according to their comfort. But when you are registered with group health insurance, the employee has to pay a one-time premium. The rest of the costs are handled by the employer.

2. Independence

An employee can lose the group health coverage if they leave the job. However, there are provisions for changing your group health insurance to individual health insurance. It saves the waiting period and keeps your benefits intact.

An individual plan does not depend on your employment. Even if you leave the job, your individual health insurance provides your cover.

3. Choice

In group plans, employees can’t choose the insurance plan; however, a few add-ons could be available at extra cost.

On the other hand, the insured has complete control and can choose any individual health insurance plan.

Why you need to Invest in a Personal Insurance Policy

1. Safety of Your Dependents

Your Individual Health Insurance covers you and your family’s medical expenses. In case of medical emergencies, you will get medical assistance for your you and family members.

Whether you have dependent children or other family members, you will not have to worry about their medical expenses. The same applies to group health insurance policies; however, you will have to pay an extra premium to include them in your health insurance cover.

2. Insufficient Protection

Corporate health insurance does not protect you from several expenses. These plans are just a basic cover and might not secure you from several expenses pertaining to your medical condition.  You may check the health insurance benefits offered by the plan. Moreover, you can choose from different plans and only opt for the one suitable for you.

3. Differing Healthcare Needs

The healthcare needs for group policies and personal policies are different. When you choose an individual health insurance policy, you can choose the healthcare options you require.

Some examples of this would be complete personal accident cover, check-up expenses, hospitalization expenses etc.

4. Bonus Not Portable

The bonus you get from your group insurance is not portable. That means if you change jobs, you will not be able to take it with you. Once you leave the job, the employer cancels your group insurance.

5. No Legal Consequence

Companies are no longer obligated to provide you with company health insurance. This means if your employer does not select health insurance for you, you might not get medical coverage. Note, even if you have corporate health insurance, it is best to choose health insurance for individual covers.


Between individual and group health insurance, it is better to choose individual health insurance. Even if your company provides you with group insurance, you should have an individual health insurance plan.

Many health maintenance organizations offers both individual and family Insurance Plans that provide you with several benefits. You get cover on pre and post-hospitalization and all-day care treatment.

The plan also provides cover on health check-ups and sometimes on alternative treatment.

Some plans offer you a diagnostic cover along with an optional health coach. There are different insurance plans you can choose from depending on the coverage it offers.

Having an individual health insurance policy ensures you are safe for a long time. Even after you retire, you can reap the benefits of the insurance policy. Before choosing a policy, make sure you have all the necessary information to select the right one.


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