What is the difference between group insurance and individual insurance?
Health Insurance

What is the difference between group insurance and individual insurance?

Should you be buying a health insurance plan for yourself when you are already covered by group health insurance purchased by your employer? Well, that question can be answered easily if you understand the differences between group health insurance policies and individual (retail) health insurance plans. . Comparing these two will provide you with useful information regarding whether you need one of them or rather both of them.

Let’s look at the differences between the two:

  • Definition: Group health insurance, as the name suggests, is bought for a group of people. Group insurance is simply insurance that a company buys for its employees. The company concerned may get a particular plan designed or buy an existing insurance policy that the insurance provider is offering.

    Group health insurance is simply collective insurance an organization buys for the benefit of its employees. The organization may tailor a plan or select a pre-planned insurance policy from an insurance company.

    Individual (retail) health insurance is one that a person buys for self & family. An individual (retail) health insurance policy is more suitable to one’s needs and can be selected across multiple options. However, it does not offer coverage to unrelated people as in the case of group health insurance.

  • Cost: Group health insurance plans are slightly cheaper than individual (retail) health plans. Cost also depends upon how well-rounded the group insurance policy is that an organization is buying. The premium of group health insurance is paid by the employer. It could be part of the CTC or can be over and above it. Some employers also give you the change to pay an additional amount and cover your family members.

    The premium of individual (retail) health insurance policies is paid for by the individual and in case one wants to insure his/her family members, a family floater or family individual plan can be selected.

  • Customization: Group health insurance is less targeted toward individual needs. The employee cannot get the terms and conditions of the group health insurance plans altered. With individual (retail) health insurance plans, the person has full control over the coverages offered. He or she can choose a health insurance policy depending upon his or her medical history and financial situation.

  • Who all are insured? Certain companies may buy group health insurance plans that will cover you, your spouse and children but exclude your parents. Parents or parents-in-law may be covered by paying an additional premium, but not all companies offer this option. However, in an individual (retail) health insurance plan, you can additionally opt for a family floater or family individual plan. In the family floater and family individual plans, you can also cover your parents or parents-in-law along with your spouse and children.

  • Protection when not employed: The benefits of group health insurance plans are extended to you till you are employed with the company and your employer is paying the premium. Once you quit the company, you are no longer protected under the insurance policy. However, the individual (retail) health insurance policy is applicable to you for the tenure selected, whether you are working or not, provided the premiums are being paid on time.

    Whether you are a company looking for group health insurance plans for your employees or you are an individual looking for insurance plans for yourself and your family, buy insurance from SBI General Insurance. We provide wide coverage with over 6000 network hospitals all over the country.

Disclaimer: SBI General Insurance Company Limited I Corporate & Registered Office: 'Natraj', 301, Junction of Western Express Highway & Andheri - Kurla Road, Andheri (East), Mumbai - 400 069. | The information in the advertisement is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale. * ‘Tax benefits are subject to changes in tax laws’ I 'For SBI General Insurance Company Limited IRDAI Reg. No. 144 dated 15/12/2009 | CIN: U66000MH2009PLC190546 | SBI Logo displayed belongs to State Bank of India and used by SBI General Insurance Co. Ltd. under license.| ADDIG/20-21/AUG/649

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