Group Health Insurance and Individual Health Insurance – Should We Opt for Both or Live with Either One of them?
Group medical insurance in India is becoming popular day by day as more and more people are becoming aware of the advantages attached to it. Unlike individual and family health insurance, group medical insurance is designed to provide coverage to a group of people like members of society, employees of a joint employer, etc. The advantages of group health insurance policies in comparison to other policies are comprehensive coverage at lower premium payment amounts and coverage irrespective of the insured’s past medical and medical history.
Finding the best policy is homework for everyone and to be honest no one has the answer to it but without having knowledge everyone is insuring themselves with the help of the internet. If you are purchasing insurance through an agent then it could be a bit expensive and also it’ll take more time in comparison to the internet.
Table Content
Group Health Policy
1. A Group Policy is purchased by an employer for eligible employees of a company
2. this is Properly administered, the group mediclaim cover can be hugely beneficial to employers as well as employees as they come with relaxation on many aspects:
- Pre-existing disease coverage from Day 1.
- Maternity Benefits without any waiting period.
- Two years/ Four years waiting period for certain benefits.
- 30 days cooling-off period before the commencement
- 25% cheaper rates than an individual policy
- Usually, spouses and kids up to 25 years of age are eligible.
- Some may cover dependent parents as well.
3. Typically corporate cover their employees from 3 Lacs to 5 Lacs
4. Reimbursement for out-patient expenses like optical care, dental and mental care is done at nominal premium charges
5. Employees benefit largely from group health insurance policies, they share the premium amounts with the employer and also get comprehensive coverage at a minimal premium amount.
6. There are very few chances of medical coverage rejection to an individual under group health insurance due to his/her health claimed records
7. There are however instances where individuals with smoking/drinking habits, unhealthy eating habits, the filing of a claim in the past, may lead to an increase in your premium payment amount sharply in case of an individual/family floater policy. You may even be denied coverage, but not in the case of group medical insurance.
8. Employers may benefit too by enjoying Tax deductions on the premium paid.
Invest in an excellent individual or corporate group policy for the following reasons:-
- Job changes may leave you without any medical cover in case your new employer doesn’t have one. Taking up medical at that point in time may be expensive , and older parents may not get coverage.
- A good insurance individual policy starts giving full coverage of all the pre-existing diseases after four years of continuation of the policy.
- At the age of 60 when you retire and corporate health coverage ceases to exist, it is difficult at that age to start afresh in seeking a health policy that begins without any coverage of existing diseases.
Individual Health Policy
Health policy is a basic need of life, and “individual health policy” is a type of policy you purchase to save yourself from high medical expenses and long hospital bills. Individual health policy helps you by protecting you from paying high medical bills and also helps you financially. People suggest that a younger person should buy health policy and it’s much more effective for a younger person. Because it’ll be much cheaper than buying the health policy at the age of 40, the premium rate is calculated as per the age and the medical history of the policyholder.
Buying individual health policy in a younger period life is a smart step towards a safe and protective life. Nobody thinks that he/she will buy a health policy at a younger age, and there is a certain reason behind it Firstly, the young person never thinks about insurance policies because they think it’s a way of wasting money. The second reason is that some percent of youth are not aware of the policy, and due to lack of proper knowledge, they part their ways from insurance.
But the most important thing is that you can transfer your policy to a family floater policy as you get married Until now, the insurance policy protecting only you now will protect your family as well.
Difference between Group Health Policy and Individual Health Policy
| Features | Group Health Policy | Individual Health Policy |
| Claims | Claims were only made with the help of TPA. | In this case, Insurance claims are directly made by an insurance company. |
| Eligibility Criteria | Should be an employee of an organization. | Must have the age of 18 years. |
| Tax Benefit | No | Yes |
| Pre-existing disease | Mostly from Day 1. | After completing the waiting period. |
| No Claim Bonus | Not Applicable | Applicable |
| Critical Illness | No | Depend on policyholder |
| Medical Check-up | Not Required | Required |
About Comparepolicy.com
ComparePolicy (www.comparepolicy.com) is an IRDAI licensed Insurance Web Aggregator, provides insurance buyers an online platform to compare and choose the best-suited plan. We offer our customers the opportunity to compare premium rates, key features, for all leading Insurance players
- Dedicated Claim Support
- Access to all top-ranked insurance companies for the best price.
- Experience in managing Group insurance programs for corporate.
- As a leading insurance web aggregator, we have access to the best products.
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