health insurance

What is the difference between group and individual health insurance?

How does a group insurance plan work?


Group insurance offered by insurance providers provides certain classes of people, the advantage of a beneficial coverage at moderate cost. Most group insurance schemes pertain to an Employer – Employee groups but it is also sold to organisations with some commonality of interest.
 

How does an individual insurance plan work?


This type of a plan caters to an individual and is customized as per their needs and requirements. Specifications related to the individual like age, health, family medical history, etc are considered while determining the premium amount. The policy is valid for the time decided by the policyholder and is not dependent on any other factors like employment, association, etc. The premium rate is fixed at the time of buying the insurance and there is flexibility to add on benefits (riders) depending on your needs. In other words, you have a lot of freedom to cover exactly what you want in an individual insurance plan.

 
Main differences between individual and group health insurance

To further understand the differences, take a look at the table below:

 
Group Insurance Individual Insurance
Group insurance is purchased by an entity for its members. Some of the examples of Group Manager – Members are – Employer – Employee, Lender – Borrower, Service Provider-Subscriber, RWA – Resident, etc. Individual insurance is a policy purchased by an individual for themselves and their family based upon personal needs and budget.
Entry & Exit to the group are controlled by the Group Manager (Master Policy Holder). Individual alone can choose for the policy to be discontinued.
A group health insurance plan usually costs lower given a larger risk pool. Individual plans are more expensive since they involve a lot of underwriting individually.
Higher Non-Medical grids for a recognised group. Medical requirements are seen individual basis the life that is getting insured.
Policies are issued in favour of the Master Policyholder. Individual members are issued a Certificate of Insurance. Policy bond is issued to the proposer of the policy only.
 

Disclaimer - *Conditions apply. This product is offered under the Group Insurance scheme wherein Bajaj Finance Limited is the Master policyholder. The insurance coverage is provided by our partner Insurance Company. Bajaj Finance Limited does not underwrite the risk. IRDAI Corporate Agency Registration Number CA0101. The above mentioned benefits and premium amount are subject to various factors such as age of insured, lifestyle habits, health, etc (if applicable). BFL does NOT hold any responsibility for the issuance, quality, serviceability, maintenance and any claims post sale. This product provides insurance coverage. Purchase of this product is purely voluntary in nature. BFL does not compel any of its customers to mandatorily purchase any third party products.”