Having decided to invest in health insurance, one major question that’s now facing you is which type of health insurance policy you should go for. While there are several deciding factors, the biggest starting point is to select between a personal health insurance plan and a corporate group health insurance plan, provided by your company. Both of these options come with a specific set of advantages and disadvantages and you can select the more suitable one after going through the comparison listed in this article.
Personal Health Insurance vs. Corporate Group Insurance Plan
A personal health insurance plan is one that you invest in for yourself and/or your family. You have the freedom to choose the premium, the cover and features in a personal health plan. A corporate group insurance plan is one that is invested in by an organization and then offered to the employees who are eligible for it. The premiums, the cover amount and the features are decided by the employer in this case.
When it comes to the costing and paying the regular premiums for each of these policies, a corporate group health insurance plan cost less than a personal health insurance plan. In some companies, the plan can even be made available to a few employees at no cost. Add to that the convenience of premiums being deducted from the salaries itself instead of paying the premiums separately and having to keep a track of the payments as is the case with individual health plans, which makes people prefer simply opting for a corporate plan instead of a separate health plan.
When you apply for a personal health insurance policy, there is a chance that your application might be rejected after the medical checkup that is done before a policy is issued. For most of the corporate group insurance plans, this underwriting process, under which the applicant’s medical history is closely examined, is generally waived off, making it easier for the employees to get health insurance.
The biggest advantage that a personal health insurance plan has over a corporate group health insurance plan is the fact that it can be customized as per your needs. You get to set the terms of the policy, you get to decide the things that you want the policy to cover, you get to decide the premium amount based on the cover amount you want to get in the policy and you get to decide when the policy is discontinued, unlike a corporate group health insurance plan, where all of these things are decided for you.
5. No claim bonus
One big point of contention for anyone buying a health insurance policy is the question that is raised about having to pay premiums regularly even without needing to claim the benefits of the healthcare policy all year long. While a health insurance is a long term investment that is sure to come in handy in case of any medical emergency at any time, personal health insurance plans offer a no claim bonus to the policy holders if the benefits of the policy have not been claimed throughout a year. There is no such provision when it comes to the corporate group health insurance policies, with no bonus being offered to employees even if they didn’t claim any medical benefits throughout the year.
6. Applicable time
One of the major drawbacks of a corporate group health insurance plan is the fact that the health insurance policy is applicable only till the time that you are employed in the company. If you retire or switch jobs, you get an option to convert the group policy into an individual policy but the premiums to be paid for conversion are much higher than what you would pay if you take an individual health insurance plan right from the beginning.
Corporate group health insurance plans can be beneficial for cost saving and if it is not easy for you to be insured otherwise due to some specific medical conditions, but in the long run, individual health insurance plans are a lot more stable for you and your family.