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Individual vs Group Health Insurance - Key Advantages

Both, individual health insurance and group insurance aim at providing customers with the same goal which is financial cushion during medical emergencies. While both the plans offer the basic coverage, however, many are not aware of the nuances pertaining to group and health insurance.

In order to make a wise decision, it is imperative for you to understand the difference between each.

Individual Health insurance vs Group Insurance

  • Health Insurance is purchased to avert the financial risks during medical emergencies for self or for family members.
  • Group Insurance is provided by the employer to its employees at nominal rates.

One of the basic highlights of a group insurance plan is that it is cheaper when compared to health insurance. Moreover, several employers offer group insurance plan as a part of employee benefits, and you might not have to pay anything for it. For others, the premium is deducted as a part of the monthly deductibles from employee salary.

Yet, why is it that buying an individual health insurance plan is recommended by experts over a group insurance plan? Let’s understand a few advantages of the former over the latter.


  • In case of a health insurance plan, it depends upon the individual’s paying capacity to purchase a policy.
  • The cost of the policy is based on the covers selected and the health insurance plan opted for, along with the extent of each individual cover.
  •  You can customize the policy to reduce the cost.
  •  No such personalized customization is allowed in Group Insurance Plan.


Better Risk Control

  • In case of the group insurance plan, the risk is spread across all the employees.
  • Accordingly, the amount of cover is decided.
  • However, in individual health insurance plan, the risk is restricted to the person purchasing it.
  • Thus, you get complete coverage.


Bonus and Discounts

  • Health Insurance plans are provided several discounts in order to make the policy look attractive to the customer.
  • For instance, at the time of renewal, you may seek the No Claim Bonus, if eligible.
  • Such individual discounts are not available through group insurance plans.


Uninterrupted Protection

  • Whenever an employee leaves the company, the group insurance plan will not be applicable.
  • In case of the health insurance policy, the cover continues till the date of expiry of the plan.


Choice of medical care providers

  • When it comes choosing medical providers, Group Insurance plans will not offer flexibility.
  • During selection of the health insurance plan, you may check the list of medical care providers, and accordingly purchase the plan.


So, here are a few ways in which an individual health insurance plan is advantageous over the group insurance plan.

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