Individual Health Insurance vs Company Group Health Insurance

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.

Understanding Individual Health Insurance and Group Health Insurance

1. Individual Health Insurance

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

2. Group Health Insurance

This health insurance is 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.

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

1. 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.

2. Cost

In group health insurance, the employee has to pay a one-time premium. The rest of the costs are handled by the employer.

When choosing individual health insurance, the insured can choose a premium amount according to their comfort.

3. 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.

Reasons for Investing in a Personal Insurance Policy

1. 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 hospitalisation expenses, personal accident cover, check-up expenses, etc.

2. No Legal Ramifications

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.

Even if you have corporate health insurance, it is best to choose health insurance for individual covers.

3. 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 can 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.

4. Safety of Your Dependents

Your personal health insurance covers your and your family's medical expenses, similar to the family floater plan provided by Niva Bupa (formerly known as Max Bupa). In case of tragedies or emergencies, you will get medical assistance for your 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.

5. Tax Benefits

Insurance, especially individual health insurance, help you save tax. The same happens for group health insurance, where the portion of the premium you pay is not taxable.

Apart from insurances covering your medical expenses, it also saves tax on your income.

Summing Up

Between-group and individual 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.

Niva Bupa (formerly known as Max Bupa) 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.

Niva Bupa (formerly known as Max Bupa) also offers cashless health insurance, which can be convenient for the policyholders. Check the health insurance premium you need to pay for your selected policy.

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.

FAQ

Why should I buy an individual health insurance policy if I already have a group plan?

Group health cover may not meet all your medical needs. Individual health insurance provides broader coverage, long-term protection, and stays valid even after you retire or switch jobs, offering better financial security.

Does individual health insurance offer better benefits than group policies?

Yes, individual plans allow you to tailor coverage to your specific health needs, such as hospitalisation expenses, maternity benefits, alternative treatments, and coverage for pre-existing conditions, depending on the policy you choose.

What happens to my health insurance coverage after retirement?

Group insurance usually ends at retirement. An individual health insurance policy ensures you continue to receive coverage during old age, when medical expenses are likely to rise due to age-related illnesses.

Can I choose the hospital or doctor in a group health insurance plan?

Group health insurance may limit your hospital or doctor choices based on the insurer’s network. With individual policies, you can choose plans that include your preferred hospitals or wider treatment options.

Can I port my group health insurance to an individual plan?

Yes, many insurers allow porting from a group policy to an individual policy within a specific time frame. This helps you retain accrued benefits, such as waiting period credits, but you must apply before leaving the company.

How do I choose the best individual health insurance plan?

Compare coverage features like hospitalisation, daycare, critical illness, claim settlement ratio, and premium affordability. Additionally, verify whether the insurer offers cashless treatment and additional benefits, such as health check-ups or wellness support.