What is Individual Health Insurance and Group Health Insurance ?

Individual Health Insurance It is offered to individuals by insurance companies. This type of insurance has its own restrictions. Individuals who reach the age of 50 or above may find it quite difficult to obtain individual health insurance.

Group Health Insurance This insurance is usually provided to an individual through his employer. This is generally the least expensive of all types, where in many cases the premiums are paid partly by the employer and partly by the employee.

Individual and Group Health Insurances - how do they differ?

The major areas in which an individual health insurance differs from a group health insurance are:

Pre-conditions

If you have ‘pre-existing conditions’ it will be difficult for you to get an individual health insurance because your application will be declined. A lot of insurance companies check your health records going back even about 10 years. Applications may be declined if there are major health issues like diabetes, heart disease, cancer etc.

Cost

In an individual health insurance the insurance company reserves the right to choose whom they are going to provide coverage to. But in case of group insurance any individual who applies for coverage is entitled to it, no matter what his/her medical history is. This makes the group health insurance more expensive than an individual health plan.

Obtaining quotes

Group health insurance quotes are obtained after a long process. There are census forms to be filled complete with employee information, administrative process to be followed before you receive the final quote. Individual health insurance quotes can be quickly and easily obtained online.