With the many choices of insurance plans out there, you have to ask yourself, ?Which one should I take?? What’s more, if you are not familiar with the insurance terms such as premiums and deductibles, you may end up getting a plan which may be too expensive or offer lesser benefits than you had expected. So when choosing a plan, you need to be certain whether you want to get an individual health insurance plan or a group insurance plan.
Individual health insurance plan vs. group insurance plan
If you want to get an individual health insurance plan, you have to go to an agent. Individual policies have laws and regulations that are very different from the group or job-based insurance plan. As a matter of fact, the benefits and protection that individual policies offer are often not as good as the ones that the group insurance plan does. But of course, this varies from state to state.
One disadvantage of getting an individual health insurance plan is that you can be turned down based on your health status. Some insurance companies in some states do not offer coverage if you have any pre-existing conditions. But some do offer what they call a drug card. This will allow you to purchase prescription drugs but it will be covered by your individual health policy. When you think about it, the individual health insurance plan can be limiting, in terms of coverage and services.
If you are employed in a company, the group insurance plan is what your employer will offer you. They say that this is the most consumer-friendly kind of insurance out there. The best thing about this insurance plan is that you get coverage no matter what your health status is. Unlike in the individual policy, you can also get coverage for a pre-existing condition, but usually for twelve to eighteen months only.
Source by Kevin Stith