Group vs. Individual Insurance: What’s the Difference?

group vs

Trying to find the right health insurance can be difficult. It’s important to first understand the different types of health insurance so you can make an informed decision.

What is group health insurance?

Group health insurance is a type of health insurance provided by employers for their employees. The premiums are split between employers and their employees. The employee’s spouse or dependents can be added on for an additional cost.

Pros of group health insurance:

  • Lower premiums: Premiums are often cheaper than individual plans. The cost is spread across a group of people making it more affordable.
  • Tax deductions: Employer contributions are tax deductible.
  • Family coverage: Members of the employees’ family can be added for free or for an additional cost depending on the plan.
  • Wellness programs: Many employers offer wellness programs such as free gym memberships that aren’t usually included in an individual policy.

What is individual health insurance?

Individual health insurance is purchased by an individual directly from an insurance company, rather than through an employer.

Pros of Individual health insurance:

  • Customization: Individual plans can be more customizable. You can select a plan that best suits your needs.
  • Transferable: Since individual plans aren’t provided by an employer, you will still have it regardless of your employment status.
  • No group enrollment requirements: Individual plans do not have the same participation requirements that group plans have.

What is the cost of group insurance vs. individual?

The cost of group and individual insurance depends on a few different factors. Cost can vary depending on the type of coverage and its limits. For example, the cost of individual health can vary depending on age and location. Group health insurance plans typically have lower premiums because employers contribute to the cost and the risk is spread across a larger group of people.

Which is best for you?

The right policy depends on your specific needs. Group health insurance can be a great idea if you are a business owner. Offering group health insurance to your employees can improve retention and satisfaction. An individual health policy can be a good idea if you are self-employed or in-between jobs.

We understand that insurance is not one size-fits-all. At Avery Hall, we can help you find the right insurance for your needs. Contact one of our experienced agents today at our Salisbury office: 410-742-5111, Selbyville office: 302-316-6565 or for our Easton office: 410-822-7300.

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