Individual insurance covers the individual and his family regardless of health. With individual covers the risk is spread over a large group of people - millions even depending on the plan and cover.
An employer buys a group cover and offers it to eligible employees of the company. The employer selects the plan. Usually now, the premium cost is split between the employer and employee with the employee paying the larger share. The risk per person is spread over the company.
According to Zane Benefits individual insurance is more affordable because the risk pool is much larger. Using individual health insurance for employee benefits is less of a risk for small businesses. With a group insurance the moment one individual has a chronic illness or baby the premium rate will increase annually for all concerned.
The affordability of individual health insurance when used by employers by having defined contributions by both - the employer offers the employee an insurance allowance and the employee pays the rest. The employees buy plans which are suitable to their families. Employers have complete cost predictability and there are no minimum or maximum contribution amounts.
Hannah Punitha (IRDA Licence Number: 2710062)
www.prweb.com, November 2013