There is a Paradigm shift in the increase of medical expenses not only in Canada but in the entire world. The smaller families are more health-conscious and have a total focus on having a secured future. An insurance policy can save one against a lot of medical expenses that would have been otherwise killing. Both group insurance and individual insurance have a similar impact in many ways. Both the policies help to meet the unwanted medical expenses and keep the policyholder at peace. However, there are a couple of confusions that most of the policyholders have in mind. In this article, we are going to clarify what individual insurance and group insurance policies are and how to make the right choice in selecting them. The article also covers the comparison of both the policies and helps the investors to derive a correct decision at the end.
Individual Health Insurance
Individual Health Insurance plans are meant for individual entities and not for companies. Such insurance policies are meant to be taken by family persons only. The benefits are limited to the main policyholder and to his family depending on the terms and conditions of the insurance taken. The premium that needs to be paid for such a policy is slightly expensive and is more inclined towards covering the basic needs of a person. You can add a couple of extra benefits by talking with the insurance policy agent.
Group Health Insurance
Group Health Insurance plans are specifically devised for the companies and corporate world. Such types of plans are offered by the employers to the team of employees he has. All the documents, paperwork, and legal work must be submitted to the employer. Depending on the number of workers, group Health Insurance can be large or small. The premium rates are according to the benefits that have been chosen by the employer. The overall charges of the premium are based on the total number of employees that have been secured under the policy. It should be noted that the per head premium charges of group Health Insurance are much lower in comparison to individual insurance policies.
Studying the pros and cons of individual and group Health Insurance plans-
Pros of Group Health Insurance-
1. Cheaper in nature
2. Allows the employer to choose a policy even if any employee is suffering from a pre-existing health condition.
3. No certain medical checkup needs to be done
4. Additional benefits to support corporate clients
Pros of individual health insurance policy
● More flexibility and tailormade
● The individual policyholder has complete control on deductible and benefits
● You do not have to be a working individual in order to acquire an individual insurance policy
● There is complete flexibility to choose your benefits and the Insurance Company plan
Cons of Group Health Insurance policy-
● The employees do not have any control over the coverage limits and benefits
● The plan covers you only if you are working in the company. Once you are unemployed, the group health insurance policy is not going to benefit you
● You do not hold any authority in changing and monitoring the plan
Cons of Individual Health Insurance-
● The cost of the premium is higher per head
● Zero coverage for pre-existing health conditions in most the cases
All in all, both the insurance policies have their own benefits and backdrop. However, it would be better to go for a group insurance policy as it comes with lower per head charges and delivers coverage to a large number of people at once.
