FOR EXISTING POLICY
FOR NEW POLICY
10-10-2022 |
Health is one of the most important resources that can help you yield returns at any time in the future. It is important that you ensure the best health conditions at all times to be a happier individual. With the changing lifestyle conditions and increasing medical costs, you should have a secure financial position to manage a medical emergency even if you lead a healthy lifestyle. Insurance providers offer varied health insurance plans to suffice for individual financial needs. Let us understand the difference between individual and group health insurance policies here.
Before we get started, let us understand the health policy definition.
What Is A Health Insurance Policy?
A health insurance plan is a financial product that helps you manage expenses related to your health, paying for any minor or major illnesses. It can cover pre-existing illnesses, pre and post-hospitalisation expenses, etc. You can benefit from the cashless claims or the reimbursement benefits based on your preferences.
Difference Between Group And Individual Health Insurance Plans
Factors |
Individual Health Insurance |
Group Health Insurance |
Definition |
A person purchases an individual health insurance plan to insure himself, his spouse, child, or parent. It can be used to cover individual health-related expenses. |
A group insurance plan is purchased for a group of individuals to manage health-related expenses of any group member. For example, an employer generally purchases it for the benefit of the employees in the organisation. It can be for a group having an employer-employee relationship or a non-employer-employee relationship. |
Premium |
The premium for individual insurance is better. It will be based on the individual's age, gender, health conditions, etc., |
The premium for group health insurance is lesser as the risk is extended over a group. It will be based on the number of people in the group, the type of industry, etc. The employees will have to pay a minimal to no proportion of the entire cost. |
Control |
The insured person or the policyholder controls the health insurance plan. The policy document will be issued to the policyholder directly. |
The group insurance policy will be provided to the Master Policyholder, the employer. The individual members will be provided with a Certificate Of Insurance. |
Add-on options |
The individual will have varied add-on options to enhance the financial benefits. |
There are no or limited add-on benefits to the group insurance plan. |
Sum assured |
The sum assured in individual policy is more. |
The sum assured is lesser as it covers many people. |
Eligibility criteria |
The eligibility criteria vary based on the type of insurance plan. For adults, the entry age is 18 years, and for dependent children, it can range between 90 days and 25 years. In addition, the eligibility conditions can vary based on the individual insurer's policy conditions. For example, individual health plans might be limited for a person having a family history of critical illnesses. |
The employees for whom the group health insurance is purchased should be permanent employees of the organisation. |
Policy duration |
The individual can decide on the policy tenure for the health insurance plan. |
The duration is directly linked to the terms of employment, and the benefits cease to exist when the employee leaves the organisation. |
Tax* benefits |
Tax* benefits are applicable as a tax* deduction of upto ₹25,000 for individuals and ₹50,000 for senior citizens under Section 80D of the Income Tax Act, 1961. |
There are no applicable tax* benefits for the employees.
|
Medical check-ups |
It might be required for the policyholder based on the insurer’s policy conditions. |
Medical check-ups are not required in group health insurance plans. |
Conditions of pre-existing illnesses |
There will be a prescribed waiting period to avail of the financial benefit to get the treatments related to pre-existing illnesses. |
Pre-existing illnesses for the individual employees who will be covered from the first day.
|
Purchasing a health insurance policy is important to manage health-related medical and hospitalisation expenses. However, suppose you are the sole earning member of your family. In that case, it is equally important to have a life insurance plan to safeguard your family's financial future in the event of your unexpected demise.
Life insurance plans provide a death benefit to your family in your absence. In addition, life insurance plans provide add-on riders# that offer additional financial benefits in case of specific scenarios that help you manage hospitalisation expenses. For example, the rider# that covers critical illnesses will provide a financial benefit to paying for the medical and hospitalisation expenses in case you get affected due to a critical illness. Furthermore, our Tata AIA life insurance plans provide options to customise the rider# benefits, such as receiving the payout as a regular income for a certain period, lump sum or as a combination of both options.
Conclusion
A health insurance plan is an ultimate necessity for every individual nowadays, considering modern lifestyle conditions and the increasing medical costs. Therefore, there are various health insurance policy solutions. It is important to choose the right form of investment with the necessary add-on options to ensure maximum benefits.
An individual health insurance plan will cover the health-related expenses of the insured individual, and the group health insurance will cover the health-related expenses of a group of individuals.
Buy health insurance for the individual members if the situation demands, even if you are covered under a group health insurance plan. And, if you have a dependent family, ensure to have a life insurance plan to secure their future in your absence at any time!
L&C/Advt/2022/Oct/2424
