Thinking of Group Health Insurance to be Same as Individual Health Insurance? You Need to Know This

Healthcare complications can occur to anyone and at a point in time. With the changing lifestyle trends and increasing rate of the occurrence of critical illnesses, people in India requires a shield against medical emergencies in the form of health insurance. While buying this type of insurance, an individual must go through health check-up and then decide on the adequate insurance coverage. Some people wonder if there would be no medical check-ups done as a part of the process followed to buy health insurance. Fortunately, there is a provision to get health insurance without going through the mandatory check-ups. However, there is a difference – It happens in the case of group health insurance, not on individual basis. 

It often happens that people think of individual health insurance to be as same as group insurance, which it is not. Some of the best group health policies in India differ from their alternatives in terms of benefits, price, and usability. If you as an employer, are planning to give healthcare benefits to all your employees, a group insurance policy is what you need. 

Let’s dig deeper to find out more about group health insurance:

What Does Group Health Insurance Cover?

As its name suggests, this type of health insurance policy has been formulated in such a way that they offer healthcare coverage to a group of people, not just an individual. As per the guidelines of Insurance Regulatory and Development Authority (IRDA) in India, these groups are based on relations such as employer-employee, bank-bank account holders, cultural association and its members, to name a few.  

Unlike the individual health insurance wherein the insured buys the policy mostly, the leading authority in a group buys group health insurance to cover the rest of the members. For instance, in the case of an employee-employer group, the employer buys this policy for all his employees. Some of the best group health insurance policies in India for employers even provide coverage to the employees, their spouse, dependent parents and children. These coverage benefits may vary from one insurer to another.

Also, it is not mandatory for all employers to offer group health coverage. One can only avail its benefits if his or her employer offers it. 

What Makes Group Health Insurance Different from Individual Health Insurance?

  • Coverage 

As detailed above, a group health insurance plan is more like one plan that offers medical coverage to several people falling into a specific group. On the other hand, individual health insurance covers one individual only.

  • Renewal Date

Different individual health insurance policies that cover several people need timely renewal at their respective dates, which can be same or different. However, a group plan that includes a specific number of individuals has one renewal date only. Thus, there is no need to worry about remembering several dates for policy renewal.

  • Pre-Existing Disease Coverage

While buying an individual health insurance plan, you need to get your health diagnosed with pre-existing diseases. Depending on the health test reports, an application to buy the plan may get rejected if you are diagnosed with critical illness. However, the same is not true for group health insurance. Every individual of the group who is covered in the policy gets medical coverage despite the pre-existing conditions. 

  • Cost

As compared to the individual health insurance, group health plans are comparatively lower in cost. It is what makes a group plan a highly advantageous choice for an employer.

The Bottom Line

There are several insurance products offered by renowned insurance companies in India. A group plan and an individual plan are just two of them, and they are not the same thing. So, you are advised to buy a specific insurance plan after considering its inclusions and exclusions and compare it with your needs. We, at SecureNow offers group health insurance from renowned insurers in India. We can help you buy the best plan that fits your needs.

 

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