Group Insurance vs Individual Insurance
Group insurance vs. individual insurance
Group insurance plans ensure that all employees, regardless of health, can be covered on the plan. Employees enrolled in a group insurance plan are not subject to a health questionnaire or underwriting. Those that have known health problems, who might otherwise be unable to obtain individual insurance, can be covered automatically upon employment without evidence of insurability. Some limits may be imposed on new hires for certain conditions that predate their enrollment in the plan, but most employees can start taking advantage of the benefits as soon as they are eligible. Group insurance typically offers a lower cost per unit of protection than individual health insurance, because the carrier is covering many individuals. In addition, group plans are often more flexible and provide a bit more coverage than individual plans.
Individuals and families that apply for coverage on their own are required to complete a health questionnaire and subject to health underwriting approval. Carriers ask very detailed health questions and depending on the severity or complexity of the health issues, determines the approval of your application. There are several advantages when enrolling in individual insurance. You have direct control over your policy and its benefits and can choose your deductible and co-payment amounts. Also, if you already have history with a health care provider, you can choose a carrier and benefit plan based on network that includes your select provider.