HomeHealthHow is Group Health Insurance Different from Individual Health Insurance?

How is Group Health Insurance Different from Individual Health Insurance?

Health insurance is a must in these uncertain times. Medical inflation and lifestyle diseases are constantly on the rise, and your insurance coverage may not be sufficient for them or, worse, may not even include hospitalisation and critical illnesses. Securing yourself and those you care for through medical insurance helps protect your savings during unfortunate times. But which one is better, an individual or a group insurance policy? Read on to find out.

A Benefits Break Down

Both insurance plans have certain features that make them suitable under various circumstances. Below is a comparison for you:

The Premium

Group insurances are generally cheaper when it comes to an organization, a group, or an institution. In most cases, group insurance costs a fraction of what individual health insurance would cost. Personal insurance offers much more benefits and is tailored to your individual needs, whereas a group one would offer a uniform cover to all members.


Group policies generally cover maternity and pre-existing diseases. These are easy to procure as no fitness test is required. Although, it would offer lower hospitalization and critical illness benefits. While individual health insurance will make it easier and offer a higher sum insured.

The duration

Individual health insurance is taken from 1 year to 3 years with a renewal facility every time. Most policies offer discounted renewals as well as no-claim bonuses for policyholders. A group insurance policy, on the other hand, would expire (only for that member) immediately after a member exits the group. Or if the group policy purchaser passes away or the organization ceases to exist for any reason.

Top-Up Facility and Dependent Inclusion

A purchaser or policyholder has little to no control over a group insurance policy benefit. Although, most of them allow one or more beneficiaries for each registered member, such as a spouse or dependent children. There is no such limitation with an individual health insurance policy. A little extra amount can fetch you add-on benefits and allow you to add as many dependents or family members as you want

So, What Should You Choose?

Individuals who have dependents in the family or aging elders must have group insurance. As it is a cheaper option to cover smaller medical expenses and involves no tests. Yet! No one is immune to diseases! Therefore, individual insurance is imperative.

The Indian government mandated a Mediclaim policy for employees across organizations, and businesses in 2020. Employers may offer a group or individual insurance policy to their employees based on what the organization’s budget allows and the benefits included in the policy. The best approach to comprehensive health coverage is to have both! Your employee group cover can help you for some part of hospitalization, while you can get compounding benefits of not claiming from personal insurance over the years along with taking tax advantages if it entails. A diversified insurance portfolio is key to financial security during tough times.

Abubakar is a writer and digital marketing expert. Who has founded multiple blogs and successful businesses in the fields of digital marketing, software development. A full-service digital media agency that partners with clients to boost their business outcomes.

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