Health insurance is essential for financial security against medical expenses. In India, there are two primary types: group health insurance and individual health insurance. Group health insurance is offered by employers to employees, while individual health insurance is purchased independently. Each has distinct advantages, costs, and coverage options.
Understanding the differences helps individuals and businesses choose the right policy. Group insurance often has lower premiums and covers pre-existing conditions, making it beneficial for employees. Individual plans provide personalised coverage with flexible benefits. Comparing both based on cost, coverage, and advantages ensures better financial planning and healthcare security.
What is group coverage in health insurance
Group health insurance is a policy that provides medical coverage to employees of an organisation. Employers purchase these plans to offer financial protection for their workforce. The coverage includes hospitalisation, pre-existing diseases, and maternity benefits in many cases. Premiums are often lower as costs are shared among multiple insured members.
These policies usually have standardised coverage, meaning employees may not get personalised benefits. However, they ensure access to quality healthcare with minimal out-of-pocket expenses. Some policies extend coverage to family members. Since group plans are employer-sponsored, coverage ceases if an employee leaves the organisation, requiring a shift to an individual plan.
