You are currently viewing What Are The Key Differences Between Group Insurance and Individual Insurance

What Are The Key Differences Between Group Insurance and Individual Insurance

When approaching the subject of employee benefits and what to offer your employees, you might be wondering how to tell what works and what doesn’t. A good place to start is health insurance, but with so many different options available, it can get overwhelming. 


Here are some questions that you can ask yourself. What health insurance options are available? How does individual vs group health insurance compare? Which one is best for your employees? 


In this article, we are going to break down individual vs group health insurance, so that you can make an informed decision.


Group Health Insurance

Group health insurance is a policy purchased by an employer and offered to all eligible employees. Group plans are typically cost-effective because the employer pays part of the premium and spreads out the risk among its members. Group plans also have the potential to include more coverage than individual plans, as well as additional benefits such as dental, vision, and other services.


Individual Health Insurance

Individual health insurance is a policy purchased directly by an individual or family through an individual plan offered by an insurer. This type of insurance operates very similarly to the way group health insurance does in terms of deductibles, co-pays, and coverage. That being said, the cost of an individual health insurance policy tends to be much higher. 


Individual vs Group Health Insurance: The Differences

When comparing individual vs group health insurance, here are a few key differences you should consider:

Who Purchases the Insurance?

Group insurance is purchased and administered by the employer, individual plans are purchased directly by individuals or families. When choosing a group health plan, the employer has the option to review and look over as many policies as they like to find which is best for their employees. 


When an individual is choosing their health plan, they have the same opportunities but are fully responsible for purchasing that policy.


The Cost

As mentioned previously, individual plans tend to be more costly than group plans since the risk is not spread across the employer. There are various price factors to consider such as tobacco use, age, state, deductible, and the amount of coverage provided in the plan. But, the cost of an individual health insurance plan is most likely always going to be higher. 



With individual health insurance plans, you have more flexibility in terms of which benefits or coverage options are included. This can be helpful for those who need a specific type of policy that isn’t available with group coverage. 


Many group health plans offer add-ons, known as rider options, which you can purchase for things like maternity care or personal accident insurance. 


Bethany Insurance is Here to Help!

At Bethany Insurance, we understand how overwhelming it can be trying to choose an insurance plan for your employees. Our experienced agents are here to help guide you through every step of the process. We will work with you to find the perfect group insurance plan that fits your needs and budget. 


Let us help you provide comprehensive health benefits for your employees, so everyone can stay healthy and productive! Contact Bethany Insurance today to get started.