Group Health Insurance

Is Group Health Insurance better or Individual Health Insurance?

You'd think that the differences between group insurance policies and individual insurance policies would be simple enough to understand. In truth, however, many people are uncertain of the nuances of group insurance and individual insurance. Comparing these two kinds of health insurance policies will provide you with useful information, thereby allowing you to pick what's best for you.

Yes, it's true that both types of insurance policies provide similar coverage, but they do differ in the details, sometimes quite prominently. Small businesses in particular need to assess the need for a group insurance plan, both for tax and employee benefit purposes.

In order to better understand the differences between group insurance and individual insurance, and consequently make important decisions concerning it, it is necessary to know what they entail.

Having said that, let's have a look at the differences between group and individual insurance.

Definitions

Group Insurance is simply an insurance package an organisation buys for the benefit of its employees. The organisation may design a self-insured plan itself or select a pre-planned insurance policy from an insurance company.

Individual insurance is self-explanatory too - it is the insurance package an individual buys for themselves, or for a group of people, such as for his or her family. Though the name suggests otherwise, it isn't true that an individual insurance package covers only a single person.

To know the difference between Group Health Insurance and Individual Health Insurance.