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.