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Individual health insurance is that which is purchased by individuals from the different insurance companies. Group health insurance is that which you may purchase from your employer and is the least expensive of all types.

It is believed that group health insurance is stronger than individual health insurance. In terms of insurance rates too individuals who have enrolled into group health insurance plans get a comparatively cheaper deal than those enrolled in individual health insurance plans. However the disadvantage with group health insurance is that if there is any one person with a habit that may affect rates, it applies to the entire group instead of just affecting an individual.

While a group health insurance is designed by an employer keeping the best interests of the employees in mind and hence changes cannot be made easily as it affects the entire group, individual health insurance is easier to customize. What is good for the entire group may not always be good for you. In such situations, individual health insurance seems like a better option. But the high cost of insurance makes it a lesser preferred option. Since fewer people opt for individual health insurance plans, few companies offer this insurance.

Group health insurance plans on the other hand help cut rate since they are way cheaper than individual health insurance. With group health care insurance you can expect to get relatively comprehensive coverage too. While group health insurance covers important factors like car accidents, kitchen accidents, burns, hospital costs and the like and in some cases cost of prescription drugs too.

Besides the above mentioned differences there are few other areas in which an individual health insurance differs from a group health insurance. They 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.