What are the advantages of group insurance over individual insurance?
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Asked August 23, 2010
Because group insurance is offered through settings with a wide range of health care requirements, they often have fewer requirements for enrolling, such as having no physical examination in order to qualify. In comparison, individual health care coverage is often more selective about who is allowed to enroll, and requires a health examination before enrollment. Group insurance is more tolerant of pre-existing or hereditary conditions, where individual plans may exclude many conditions. One item of contrast, however, is that group insurance plans often exclude coverage for pregnant women while individual insurance plans may cover the condition.
Additionally, group insurance is usually less expensive than individual health insurance because it relies on the power of a high number of enrollees to distribute the costs of providing healthcare. Essentially, the rates are the same for a person who very rarely needs medical attention as they are for the person who must see a doctor or specialist frequently. Note that some procedures and plan may involve an increased deductible or copayment above and beyond the cost of the premiums.
Group insurance plans offer immediate coverage when you become eligible, where individual health insurance may impose a predetermined waiting period before the coverage goes in effect. This period varies from one insurance provider to the next, and may be modified according to certain conditions or procedures. The prospective insurance company can offer you the complete details of the available coverage.
Finally, group health insurance plans usually offer a wider range of benefits, or allows the policyholder to tailor their coverage for specific needs. This type of flexibility is rare for individual health insurance policies but is important in group policies because of the sheer number of people whose needs must be met.
Answered August 23, 2010 by Anonymous