Individual health insurance or group insurance?

Individual health insurance is the type of insurance that covers the medical expenditures of only one person or family. It is different from group insurance because you buy individual insurance straight from an insurance company. While applying for individual insurance, insurance providers investigate how much risk you present. It can be done either through a number of medical questions or a physical exam, sometimes both may be included. The results are important as the cost of your insurance depends on them.

What does the insurance company need to know?

Before you are given an individual insurance policy, the insurance provider will try to know as much as possible about your personal health history. Do not try to hide anything from your insurer because many insurers check the information to determine whether you are insurable. In case the insurance provider refuses to cover a definite health condition, you can get a policy with an exception.

What are the advantages of individual health insurance?

If obtainable, group insurance is usually a better choice because it is cheaper than individual insurance. Still, individual coverage is much better in the event of illness or injury. You, of course, may think you can live without health insurance but you risk very much if you prefer not to get coverage. An unforeseen illness or bad injury can lead you and your family to financial difficulties.

In case of group insurance, the insurer and master policy owner (usually an employer or association) discuss the policy. You and only you are in control of your policy if you give preference to individual insurance. It is possible to negotiate and have certain provisions added or taken away, and you can select your deductible amount as well as co-payment percentage. Don't forget that these things will influence your premiums.

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