The battle of group health insurance versus individual health insurance and which should you choose.

The battle of group health insurance versus individual health insurance and which should you?choose. Here are the facts to consider.

About:

Group health insurance is one that covers all the members of a particular group whereas in an individual health plan, individuals purchase insurance for themselves, and their families based on personal needs.

Lower premium:

Group health insurance plans are often around 35% to 40% cheaper than individual policies. Furthermore, as there are more people on one policy, and less chance of getting a claim, the insurance company can afford to provide lower rates than a single-insured policy.

Wider coverage:

Group health insurance covers pre-existing medical ailments, and maternity. Pre-existing coverage is one of the biggest benefits of group health insurance. Members can enjoy this benefit whether they are eligible for individual insurance or not. Individual health insurance policies require pre-underwriting, but not group health insurance policies. Group insurance policies do not depend on medical underwriting; they offer pre-underwritten rules.

Faster processing:

Every day, your body is aging and moving closer to death. It is a fact that life expectancy has increased over the years and almost everyone wishes to live long. However, it is equally worrying that health insurance companies take up to 6-8 weeks before they can finalise an application process which deals with applications for individual health insurance. Group health on the other hand takes no time at all during the application process since the plan providers don’t have to go through any medical underwriting prior to offering membership.

No waiting period:

Individual health insurance plans often have waiting periods. For example, the waiting period for treating pre-existing conditions can be as long as 2 years. On top of that, you also must wait an additional 30 days until your plan kick in. However, group health insurance plans like those available through your employer can be used right away for maternity and pre-existing conditions.

Tax benefits:

According to section 17 of the Income Tax Act, if you opt for group health insurance and pay premiums on behalf of the members of your group, the expense is considered as a business expense, and you can avail of tax benefits. So, group health insurance helps you reduce your overall tax liability. For individuals, depending on whether you entirely pay the premium or partially pay it, under Section 80D of the Income Tax Act you can gain tax benefits.

Added benefits:

You can offer your members health insurance as an added benefit. The plan also provides security and peace of mind to them, which is why it's so valuable. The positive effects on their mindset are profound. Members who are insured feel valued and appreciated. Besides health coverage, you get all-around wellness as well. With individual insurance, the added benefits are limited and typically come with a price tag.

Hence, picking group health insurance over individual health insurance is a sought-after option as it covers the desired needs.

If you are looking for affordable medical insurance and want to avail of the benefits of a group plan, then contact our Retail team today. We have the best options to suit your needs and with the right coverage you can be sure that your employees and their families will get the treatment they need without risking their finances.

Call us at +91 63574 43617, alternatively leave us a query on?[email protected].