Group Insurance vs. Individual Insurance – It’s Not a Competition

With the Health Care Reform passed, most everyone has had a few questions on how and why things are changing and how it will affect them. 

At Linton and Associates, we have tried to answer these questions for you, but in the end there are always more to be answered.

For instance, which is better -- group insurance plans or individual insurance plans?

 Honestly, it is not about which is better but about which is better for you. In this blog post, we are going to break down what group insurance plans are and what individual insurance plans are as well as help you to identify which best suits you because, come 2014, everyone will have to be insured.

Group Insurance Plans

Group insurance isn’t something that you, as an individual, just goes out and buys; it is the most popular of insurance plans and most commonly seen in practice at the office. Group insurance is the type of health insurance that is offered to you through a company.

You pay a small portion of the premium and you get what is called employee benefits. Since your boss is dealing with the insurance company, you don’t have to worry about them, excluding some type of healthcare from the plan because of a defect in your family history.  

So, why do insurance companies offer group insurance? Well, simply put, it’s because though there is a chance of loss to be factored in. 

For the most part, health care with employees promotes good health and makes them less likely to grow severely ill with regular doctor’s checkups and such.

Not to mention that all the employees paying a monthly premium makes for good money in the insurance world. In short, group insurance is a win-win – that’s a win for both the insurance company and the people.

Individual Insurance Plans

These plans are designed for individuals. Most often, the people who opt to purchase them are either self-employed or unemployed. These plans are expensive due to being high risk for most insurance companies, and these factors have actually led to many companies not offering this service any longer. 

However, if you are self-employed and cannot access a group insurance plan, there is not always a choice, which is why many Americans go without health insurance every year.

When it comes to choosing health insurance, it always comes down to what you need and have available. 

Many people would prefer employee benefits, but they do not always have the option and so they then can choose to try and qualify for the individual plan or just not have it at all.

Linton and Associates is a firm supporter of the health care reform because everyone should have access to insurance, so we are here to help with specific group insurance solutions and individual insurance solutions that will hopefully fit your budget and needs.