How Do Employee Health Insurance and Individual Health Insurance Differ?by Rahul K. Insurance Nowadays, group medical insurance for employees has become one of the major incentives offered by companies. Often, people are confused which one among the two is better and if it is okay to have only the group insurance cover. The fact is that both of these have their own advantages and disadvantages. It is best to have the employee medical insurance as a backup plan and opt for a comprehensive individual health insurance.
What is employee health insurance?
A group insurance plan is usually presented to a certain group of people, such as the members of an alumni, a club, an association, etc. Various companies offer their employees with a group medical cover as employment perkstoo. The most notable features of this type of health insurance are:
The premium cost per head is usually lower than individual health insurance of the same type. This is because more the number of insured people under the cover, lower would be the cost per head.
The employees would benefit from the cover only as long as they are employed by that company. In case if they leave the job or are removed from it, they would lose the insurance cover.
All the insured individuals under a plan receive more or less equal cover. However, the insurance companies design the scheme based on a cumulative risk factor. This means that not all the employees would have equal chances of being able to stake a claim.
What is individual health insurance?
As the name suggests, an individual health insurance plan covers only an individual policyholder. The insured person can customise the plan according to his or her needs. This is usually more comprehensive than the employee health insurance and is sought after by many employees who are already covered by a group insurance plan. Some of the noted features of individual health insurance are:
These cost considerably higher than employee health insurance plans, as only one person is covered by it.
As per your needs, you are free to purchase additional insurance benefits. Basically, individual insurance plans are highly customisable.
These plans offer coverage over various medical conditions which employee health insurance doesn’t cover.
What are the main differences between the two?
Evidently, both of these two types of insurance carry their advantages and disadvantages. You certainly cannot pick one and discard the other. The main differences between the employee and individual plans are:
Individual medical insurance plans are more expensive than the employee medical insurance plans.
There is little space for customisation on the part of the employees when they are covered by employee health benefits, while individual insurance plans are customisable to a great extent.
When you opt for individual insurance cover, you are in full control of it. Only you can make adjustments to the plan or discontinue it. On the other hand, a company offering the employee health insurance cover controls the plan and can withdraw it from an employee if it sees fit.
Your individual insurance plan as a personal asset which you may use while applying for loans. On the other hand, you can’t do the same with the cover provided by your employer as the plan would be an asset of the company.
Those opting for individual medical insurance must undergo several medical tests. However, the members covered by an employee insurance plan do not need it until a certain amount of cover.
Which one should you opt for?
There is no harm in gaining some additional protection, which is why it is advisable to go for an individual insurance plan even if you are already protected by an employee insurance cover. Vital offers comprehensive and affordable plans for both of these types and is a good option for individuals and companies. The plans offered by Vital come with a number of added perks, such as:
0% EMI for planned elective procedures
Special offers on the consultation of doctors
A dedicated care manager for each client
Insurance is indeed something you shouldn’t compromise with. Not buying enough cover might prove to be a costly mistake in case if you suffer a major medical condition in the long run.
Created on Oct 26th 2020 06:59. Viewed 106 times.
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