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An employer offers a group group health insurance policy , and a personal policy is the one you buy individually. Read on to know more about the differences between the two.As insurance companies in India offer a wide range of customised health insurance plans, choosing the best plan to suit your specific needs has become easier than ever before. Broadly speaking, health insurance policies are of two types – Group Policy and Individual policy or Personal policy.The health insurance offered by the employers is mostly group insurance. It generally has an affordable premium and offers limited coverage and benefits compared to a personal health insurance policy. However, both policies provide coverage against medical expenses during an emergency.Many people covered under the group healthcare plan offered by their employer tend to ignore buying personal health insurance. This is mainly because they believe the coverage provided under a group plan is enough. And, secondly, most people understand the difference between group and individual health insurance.
What is a group health insurance policy?
Typically, the corporate organisations provide health insurance cover to all the employers as part of the employee benefits program. The insurance companies decide the premium and the coverage amount based on the cumulative risk of the group. These policies have limited coverage, and the benefits offered are uniform to all the members until they are employed with the organisation.
What is an individual or personal health insurance policy?
As the name suggests, personal health insurance is a type of insurance that you buy for yourself and your family. In individual health insurance , the coverage offered is customisable to suit your specific needs. The premium is based on factors like age, family medical history, pre-existing illness, the sum assured amount, add-ons selected, etc. The policy remains valid until you default on the premium payment.Now that you know what a group and individual health insurance are, we list down the differences between the two in the table below:
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| Group Health Insurance | Personal Health Insurance |
| Policy tenure | The policy remains active until you are employed with the organisation or until the employer cancels your name from the group. | You can choose the policy duration to suit your needs. You have complete control over whether you want to continue the policy or not. If you pay the premium, the policy remains active. |
| Coverage Amount | The employer chooses the coverage amount. And, the coverage is distributed uniformly among all the individuals covered under the policy. | You have the flexibility to choose the coverage amount as per your needs. You can choose a plan of up to 1 crore or more. If you have purchased a healthcare plan for your family, every member is liable to get coverage equal to the sum assured. |
| Premium | Group health insurance policies have an affordable premium. Generally, the premium is deducted from your salary, and it is an inherent part of your CTC. | The premium for an individual policy is higher than the group policy. You must pay the premium periodically, as per the policy’s terms and conditions. |
| Medical Assessment | Individuals covered under a group plan need not undergo a medical check-up to get the policy benefits up to a specified coverage. | Depending on the member's age, and the insurance company’s eligibility requirements, medical check-ups may be mandatory for buying health insurance plans. |
Choose the right type of policy to get maximum protection
The primary purpose of a health insurance policy is to get financial protection against medical emergencies. Therefore, it is vital to choose the right type of policy and coverage to get maximum protection. A group health insurance policy is available only to employed professionals. So, if you are self-employed or a business owner, you must purchase individual health insurance for your family.
DISCLAIMER
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
