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Individual Policy Vs Group Policy
Oct 27, 2023

Individual vs Group Health Insurance Policy

If your employer or any other formal group that you belong to is offering a group health insurance policy, it might be smart on your part to avail of it. But it is natural for one to wonder whether this sort of group medical insurance is enough. Does it offer the coverage you seek? Can you get more if you buy a policy for yourself? You can get closer to the answer to these questions if you can get a thorough understanding of what group health insurance is and what it has to offer. Remember that the details of the plans can differ across organisations as the plan details chosen by one employer may differ from another. Once you get to know the health insurance plan offered by your employer has to offer, you can then move towards gauging whether you need to buy a new health policy for yourself and your family separately. There are several reasons why you may feel the need to get an additional individual health insurance plan. Some of these could be as follows:
  • The group plan may not be offering the sum insured you seek
  • The inclusions are not sufficient for you
  • You do not agree with the exclusions of the plan and believe you may get a better deal
  • You seek additional coverage based on your health conditions
  • You want to include yourself and your family members under the umbrella of a single health plan
  • You do not want to rely on the employer-provided policy and make provisions for yourself for the long term.
All these seem like valid reasons for you to want to take additional health insurance for individuals. Even if you do not relate to these reasons, you may still want to consider getting a health plan over and above your group health plan provided by your company or the group that you belong to.

Why Get Individual Health Policy in Addition to Group Policy?

If you are getting an employer-paid group health insurance plan, you can make the best use of it. However, it may help if you plan for your wellbeing besides this company-provided plan. Here are five reasons why you should consider getting health insurance for yourself (or your family) even if you already have a group health plan.

Reason 1: You may not have this cover for as long as you need it

While it may be an unpleasant thought to bring to mind, one has to consider the possibility that their current job may not be a permanent one. Tomorrow, a better opportunity could come along. It is also possible that you may seek a significant change in your career that may not come to you at your present employer. For any of such multiple reasons, you may let go of your present job. If you do so, you may lose all its perks including health insurance. Thus, it is advisable to get an individual health plan, so you don’t find yourself without health coverage.

Reason 2: Coverage is not enough

Everyone’s healthcare requirements are different. For example, some people are living with pre-existing conditions while others may be at a high risk of developing certain disorders thanks to their genetic history or their lifestyle. Often, the coverage provided by group policies is not sufficient for such health complications. Hence, you may need to buy additional coverage separately.

Reason 3: The coverage may be reduced

Even if you believe that the group policy coverage is sufficient today, it may not always remain the same. In most cases, the group policy details are decided by the employer and the insurance provider. The employee does not have in say in all aspects of the policy. In the future, the company may decide to reduce the coverage offered. Thus, it is better to have sufficient coverage through another policy.

Reason 4: You may need a more specific plan

Suppose you are at an increased risk of a serious condition that may drastically increase your healthcare expenses. Your group policy may not provide the necessary coverage for the same. You may want to consider something more specific such as a critical illness plan or a cancer insurance policy.

Reason 5: Lack of coverage post-retirement

In an ideal situation, you will retire from your job someday. This could be anytime between 40 years to 65 years of age. Once you do, you will not have the group policy coverage. Getting a new standalone health plan in your later years is difficult and expensive. Thus, it is better to start having coverage now and renewing it regularly. When you look for a new health plan, ensure that you are using a health insurance premium calculator to see the premium you may have to pay.   * Standard T&C apply. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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