Designed specifically for firms, group insurance is offered by companies to their employees as an employment benefit. Group insurance can be bought on the open market, or it can be a self-insured plan set up by the company.
The group health insurance members are provided a fixed amount of cover. For determining the premium amount, the cumulative risk of all the health insurance members is considered.
All the group insurance members are covered for as long as they are employed in the company. Once they leave a company or association, they will stop getting health insurance coverage.
Individual insurance policy, on the other hand, is purchased by an individual for themselves and their families. This type of health insurance plan caters to the needs of an individual.
Factors such as an individual’s age, family, medical history, and health are considered to determine the premium. The premium amount is determined at the time of buying the insurance plan. Based on an individual’s medical needs, they can buy additional benefits to cover what you want.
As far as policy expiration is concerned, its validity is determined by the policyholder. Unlike group insurance plan, individual health insurance does not rely on factors such as employment.
The main differences between individual and group health insurance are:
- Group insurance contract is drawn in the name of a company. Meanwhile, individual health insurance is in the name of an individual.
- For individual insurance, the premium has to be paid at fixed times. On the other hand, it is deducted directly from employee salaries in the case of group insurance.
- The insurance provider can cancel their employees’ group insurance coverage. However, only an individual has control over their insurance plan and can choose to discontinue it.
Both individual and group health insurance plans have their own advantages and disadvantages. Depending on your needs, you can choose the desirable plan for yourself. In order to explore the most reliable individual and group insurance plans in New York, contact Affordable Health Insurance in NY. The company provides quotes from the most affordable individual or group health insurance plans in New York for you to get maximum coverage. ghi health insurance NY