Group vs. Individual Insurance

Group vs. Individual Insurance

When you are trying to decide which type of insurance plan is going to be the right one for you and your family’s needs, it can be a daunting challenge for any Canadian family. If you’ve never shopped for insurance before, choosing what’s right is difficult because you don’t know what your options are and you don’t know what you need. It helps to step back and do some reading on the subject so you have the knowledge to make an informed decision when the time comes. The following should give you a good idea of the difference between group and individual health insurance.

 

Group Health Insurance Plans

These plans are only available to you if you are part of a business or organization that offers group policies. Some of the common places you will find group insurance offered are through your employer, a union and a trade association. Not all companies offer this, and you may not even have this option. If you do have this choice available to you, it pays to know some of the advantages and disadvantages associated with it.

The biggest advantage, naturally, is the cost. Your employer will pay for part of the cost of the plan, and that cuts down on what you have to pay. In addition, you aren’t subject to underwriting for the policy, meaning that you would qualify for the policy even with preexisting conditions. The only real disadvantage would be that when you leave the company, you no longer have the policy.

 

Individual Health Insurance

If you aren’t a member of an organization that offers a group policy, then you need to choose individual health insurance. You may think it would cost more to have one of these policies that’s not always the case. If you are healthy, you might find that it is more advantageous to choose this type of policy, even if you have the option of a group policy. Another one of the benefits is that you will be able to choose the type of coverage that you really need, something that will cover more of the costs including prescriptions. It’s also portable, meaning that you take the policy with you, unlike the group plan. However, if you are at higher risk, it is likely going to mean higher costs.

The healthcare in Canada is some of the best in the world, and that should make finding and choosing the right plan for your needs even easier. Weigh the pros and cons of each choice and pick the one that’s right for you.

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