Why do you need individual health insurance plan if you have a corporate health insurance plan?

Most people think that individual health insurance plans and corporate/group health insurance plans provide similar coverage, but they do differ in various aspects like cost and customisation options.

Most people do not understand the nuances of group insurance and individual insurance and think of them to be similar. A thorough comparison between the two kinds of insurance policies will provide you with useful insight into why you need an individual health insurance plan even though you already have a corporate health insurance policy.

Let ‘s have a look at the differences between corporate health insurance and individual health insurance and which is the best medical insurance among them.

Corporate/Group insurance, is the health insurance plan that an organisation procures for their employees. The organisation may design an insurance plan itself or choose from the ones offered by the insurance company.

Individual insurance, as the name suggests, is the health insurance plan that an individual procures for themselves, or for a group of people, like his/her family. While it is called ‘individual’ insurance, it can cover more than one person.

What are the differences?


Group insurance plans are cheap, and you can purchase one at very low or no cost to the employee. It is almost like buying something in bulk and getting huge discounts. An employee does not need to pay any additional fees unless someone opts for special benefits. The premium amount for this type of insurance plans debits from the employees’ salary as opposed to individual insurance plans wherein the premium is paid separately by the individual insured. This is also part of the reason most people hesitate in buying an individual health insurance plan and feel that the group insurance plan offered by their employer meets all their needs.

Control and convenience

Although not very common, sometimes an individual can be denied an insurance package for some reasons including financial and medical history. However, group health insurance plans are available to every individual who is an employee of the company, and you get all the required approvals without a hiccup. Hence, it is a lot easier to obtain an insurance policy through an organisation.

Individual health insurance plans provide full freedom to the individual to set the terms of the policy. You can customise the policy based on your personal, medical, financial, and social situation rather than compromise on a standard policy in group insurance.

No Claim Bonus

In case of a group insurance policy, you do not get any benefit from not making any claims throughout the tenure of the policy. While, if you get yourself individual health insurance, you are eligible for a no claim bonus for not making any claims. You can enjoy it as a reward for staying healthy.

Moreover, even if you do not make a claim under a group health insurance policy, but someone else makes a claim, it is possible that the insurance company may raise the premium amount or reduce the cover offered.


While individual health insurance plans are applicable at all times, corporate/group insurance plans offer coverage for as long as you are employed, and the employer is paying the premium. Sometimes, you get an option to convert the group insurance into an individual one when you retire or resign. However, the conversion premium in such a case is higher than it would be in a new individual insurance plan. Hence, conversion is not worth it.

What should you choose?

Group insurance plans can be cost savers for both employers and the employees. It a real bargain, and affordable individual insurance plans have a definite edge over them and are the best medical insurance plans available and necessity even for people who get the cover under a corporate insurance plan.

The most significant reason would be that individual plan allows you to choose what is covered and what is not under the policy. You get to decide which critical ailments you want to cover, based on your family and personal medical history. You also get to factor how many members of your family you want to get covered and the sum you are assured. Corporate policies, in comparison, will always be constructed according to the will of your employer.