Yong Wai Meng on Group Health Insurance VS Individual Health Insurance

It is important for businesses, especially, small businesses and start ups, to understand the differences between different insurance policies so that they can utilize these for tax purposes and for the benefit of the employees and the company. Look at group health insurance and individual health insurance.

A comparison of group health insurance with individual health insurance will help to understand each of the policies better. 

What are they: A Group Health Insurance is an insurance package that is usually purchased by companies and other organizations for their staff! The plans can be either a self-insured or a pre-planned one from an insurance company. 

An Individual Health Insurance is an insurance plan that an individual buys for self. Though the term suggests that it is a plan that can be bought only for a single person, it isn’t really so.  A company head can buy an individual health insurance plan for a group of his staff as well. 

Cost: As you get a discount when you buy something in bulk, a group health insurance plan can be availed at a low cost. Or better, the company may not even have to pay any cost. Employees will not have to pay any additional fee but if they are seeking any additional benefit, then they may have to. When a person avails a group health insurance plan of their company, the premium is deducted from his salary and he doesn’t have to pay separately whereas if he is taking an individual insurance on his own, then he will have to pay premium on his own. That is why; many do not buy an individual insurance health plan if their company has covered it. 

Convenience terms: It is much easier to get an insurance plan through group health insurance than opting for the individual plan. This is because when a group package is taken, it means every individual of the company is eligible for insurance. In such a case, the underwriting is often not considered which is examining a person’s medical history for giving him or her insurance.

In a group health insurance plan, the insured may not have much to say but in an individual health insurance plan, the person can set terms that the individual wants. 

Bonuses: In a group health insurance plan, you are not entitled to any benefit even if you do not claim throughout the tenure. But in individual health insurance plan, you get what it is called a ‘no claim bonus’ and you may get an additional cover without any fee or a discount in premium when you want to renew the insurance plan. 

Conditions: Of course, you should know that when you get an insurance plan under group health insurance, you are entitled to it only when you are employed with the particular company and if you choose to leave the job or are laid off, you also lose the insurance plan. Whereas if you take the individual health insurance plan, you can avail of it as long as you wish to. 

For more details, visit website http://yongwaimeng.com/ or check https://www.crunchbase.com/person/yong-wai-meng