Is it better to purchase health insurance through an employer’s group plan rather than individually?
Which insurance option is better for you?
When it comes to buying health insurance, you can either get a group policy through work or an individual policy that is specifically made just for you. Many people wonder about which one is better, but the answer isn’t black and white. It matters if you are looking for cheaper insurance, or a policy that is tailored for your specific needs and preferences.
When an insurance company issues a group insurance policy, it makes one broad contract for the entire business. Everyone that is eligible for insurance then receives all the benefits from this one contract; employees are not eligible for getting special benefits on top of this contract, they can only get the benefits written in this group policy.
Since only one contract is written up, and since insurance companies typically offer discount for larger plans, the biggest benefit to group policies is their price. They are much cheaper than individual plans, especially if the company pays for the entire price of the policy.
This type of policy is best if you cannot afford an individual policy, or if you are not concerned with specialized treatments or consultations. If you suffer from common conditions and don’t want to pay much for coverage, then a group policy might be best for you.
The insurance provider has to create a specified contract just for you, and since you are not eligible for volume discounts, getting an individual policy is often much more expensive than a group policy. While the policy is more expensive, it does have some advantages.
When you sign up for a group policy, you only get the benefits listed on the group contract. If you have a condition that is not covered by the group health insurance policy, then you will not benefit at all from the coverage. However, with an individual policy, you can tailor the coverage to your needs. You can remove frivolous coverage, and add extra protection for consultations or hospital visits.
This keeps you from paying for things that are unnecessary, and ensures you only get covered for all the things you need. If you have complex health problems, have certain health needs that most basic policies do not cover or if you frequently go in for certain treatments and consultations, then getting an individual policy might be best. It is more expensive, but it is made specifically for you.
If you need to choose between a group and individual insurance policy, then it is best to look at what you need. If you need a standard policy that doesn’t cost much, then a group policy should be enough. If you have specific needs, then an individual plan will be your best bet.