Should I Purchase an Individual or Group Health Insurance Policy
You, the individual, purchase this policy
directly from the insurance company. When you purchase an individual
plan, it will generally cost more than when you are able to receive group insurance.
With most individual health insurance
policies, you must complete a health questionnaire, as well as undergo a
medical exam. Many of the companies that offer group insurance to
businesses also sell individual policies, but in the case of individual
policies, they can choose the people they will cover. You can be
declined for several reasons, not just a prior medical condition. They
also look at your habits, your income and your age.
On the other hand, most group insurance policies are issued without the member having to undergo any medical exams. Group health insurance
is when your employer provides health insurance for its employees. In
this case, the insurance company agrees to accept everyone that works at
the company, regardless of any medical history of other qualifications.
In the case of group health insurance, the costs are shared.
The employer pays a certain amount, then the employees pay a set amount
towards their insurance plan. Most employers generally take this right
out of your paycheck.
The benefit of having group insurance is that they generally
offer a great deal more than having an individual policy for the same
price. In the group policy, you usually have smaller co-pay for doctor
visits and other treatments, and most group policies cover your
prescriptions. In addition, with group health policies you generally do
not have to worry about meeting high deductibles.
