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How to Choose the Best Travel Insurance Plan for Your Trip
- March 27, 2025
- Insurance
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Health insurance protects individuals and families against medical expenses arising during emergencies. Unsurprisingly, we are all prone to health issues, especially as we age, and increasing health expenses can burn a hole in your pocket. However, the best health insurance can ensure financial security.
When it comes to health insurance, two prominent categories emerge:
- Individual Health Insurance
- Group Health Insurance
While both have pros and cons, let us discuss each to help you understand better.
What Is Group Health Insurance?
As the name suggests, a group health insurance policy covers the medical expenses a group of people has incurred. Employers, cooperatives, companies, or groups often opt for this policy for their employees or members. The employer or the group secretary issues the policy and covers all its members.
These insurance policies provide uniform benefits to all members as long as they are part of the company. In many companies, group mediclaim insurance coverage extends to an employee’s immediate family, which includes their children, spouse, and parents.
What Is Individual Health Insurance?
Individual health insurance, as the name suggests, covers the medical expenses incurred by an individual. The policy caters to the healthcare needs of the person insured. The coverage of the health plans offered in the insurance is exclusively for the individual policyholder. It cannot be extended or shared with other group members or family members. Thus, it is also named personal health insurance.
Key Differences Between Group And Individual Plans
The chart explains the difference between group and individual health insurance for better understanding and informed decision-making:
| Categories | Group Health Insurance | Individual Health Insurance |
| Meaning | It covers the group of people. | It offers cover to an individual. |
| Who Can Opt? | Employers, Groups, Cooperative Societies | Only one person |
| Who Is Covered? | Group members, employees and their immediate family members | Only the policyholder is covered |
| Eligibility Criteria | Must be a permanent employee of the company or part of the group | Must be 18 years and above |
| Pre-policy medical check-up | Not necessary | Might be Required |
| Sum Insured | Low sum insured options are available | High sum insured options available |
| Pre-existing Diseases | It covers from day one | It covers after a waiting period of 2 to 4 years |
| Maternity Benefit | Is available | May or may not be available |
| Critical Illness Cover | Not available | Only available if opted for by the policyholder |
| No Bonus Claim | Not available | Available |
| Tax Benefits | Not available | Available |
| Extent of control | Offers limited control as the employer decides the coverage | Full control by the policyholder (they can increase or decrease, as required) |
| Customisations | Not possible | Possible as per the policyholder’s needs |
| Flexibility | No freedom to choose or compare | Complete flexibility to compare and select the best |
| Premium Payment | Paid by the employer | Paid by the policyholder |
| Claims | Claims may have to be raised with a TPA | The policyholder can directly raise claims |
| Exit Criteria | Policy ceases automatically when the employee leaves the company | Lifetime renewability available |
Which One Should You Choose?
Group and individual health insurance policies have distinct features. While an employer’s group insurance plan is cost-effective, it ensures lower-cost coverage. On the other hand, individual health insurance plans can be customised to the insurer’s needs, providing comprehensive and specialised coverage.
Group plans have limited advantages and cannot meet individual needs. Also, you cannot change the group health plan or even add your family members to it. You have to stick to what your employer has provided. Individual health insurance plans offer various options and remain unaffected by a job or employment status change.
While most companies provide group health insurance, relying entirely on the same may provide you with less coverage due to increasing healthcare expenses. Additionally, the group health insurance becomes nil once you leave the company.
To ensure long-term protection, financial stability, and access to quality healthcare, it is advisable to buy the best health insurance plan that aligns with your personal needs, whether a well-rounded individual policy or an additional top-up to your group coverage.
