Choosing between group health insurance and an individual plan can be challenging. Both options offer financial protection for medical expenses, but they work differently. The right choice depends on factors such as cost, coverage, flexibility, and personal health needs. In Singapore, many employers provide group health insurance, but some individuals still opt for personal plans to strengthen their coverage.

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Understanding Group Health Insurance

Group health insurance is provided by employers, covering employees under a single policy. These plans typically include hospitalization, outpatient treatments, and sometimes dental or wellness benefits. Employers negotiate these policies with insurers, often securing lower premiums due to bulk coverage.

One key advantage is affordability. Since the employer covers most or all of the premium, employees pay little to nothing for basic coverage. Additionally, pre-existing conditions are usually covered, and there is no need for a medical check-up to qualify. However, group plans may have limited coverage compared to individual policies, and benefits stop once employment ends.

Individual Health Insurance: More Flexibility, Higher Costs

Individual health insurance offers personalized coverage, allowing policyholders to choose benefits that match their needs. Plans can include hospitalization, outpatient care, critical illness coverage, and riders for additional protection. Unlike group insurance, an individual policy stays active regardless of job changes.

However, premiums are generally higher. According to The Straits Times, private Integrated Shield Plans (IPs) in Singapore can cost between S$300 and S$1,500 per year, depending on the level of coverage and age. Additionally, insurers assess medical history before approval, and pre-existing conditions may not be covered.

Which is More Affordable?

Group insurance is usually the more affordable option, as employers either fully or partially cover the premiums. This makes it an attractive benefit for employees, especially those who may not want to pay for an individual plan.

On the other hand, individual health insurance requires full payment by the policyholder. Premiums vary based on age, medical history, and coverage level. While group insurance offers lower costs, individual plans provide more control over coverage options.

Coverage Differences: What’s Included?

Group insurance plans typically cover hospitalization, specialist consultations, and outpatient treatments. Some employers offer additional benefits like maternity coverage or wellness programs. However, the coverage amount may be limited. 

For example, hospitalization benefits in a group plan might cover only S$20,000 to S$50,000 per year, whereas an individual private health insurance plan can provide coverage exceeding S$1 million, depending on the policy.

Individual plans allow policyholders to customize their coverage. Those who want higher hospital room classes, overseas treatment options, or critical illness protection often prefer personal plans.