Health Insurance vs Group Insurance:  A group medical insurance is a customised plan that a recruiter provides to its employee at the time of joining, however, the premium of this plan is paid by the employee. In fact, the employers work as an intermediary between the insurance company and the employee and negotiate for the best available deal that the insurance company can offer to a group of people working at the employer's office. Therefore, an employee is well aware of the benefits and losses involved in a group medical insurance plan. But, still there is a question for each and every employee, should he or she buy standalone individual health insurance even when it has a group medical insurance given by its employer?

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Speaking on the difference between a health insurance plan and a group medical insurance plan Jitendra Solanki, a SEBI registered investment expert said, "Group medical insurance works when a person is employed and it gives some extra benefit, which a standalone health insurance plan generally can't give." Solanki said that in standalone health insurance plans maternity benefits are barred for near 3-4 years while in group medical insurance it is for the period of 9 months to the one-year maximum. He said that the group medical insurance covers policyholders entire family and comparatively its premium is very low in comparison to the individual health insurance plans. In the case of surgery, there is a cap on the surgical expenses in standalone insurance while in group medical insurance plan, the cap is there but it would be a little higher.

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So, on the basis of the above additional benefits, should an individual avoid taking standalone health insurance plan? "Definitely not," said Jitendra Solanki adding, "The corporate group medical insurance is available till you are employed. There can be circumstances like the transition period between resignation in one firm and joining in other company. Some times, especially in startups, the joining gets delayed by two to three months even after handing over the offer letter to the new joinee." In such a period, the standalone health insurance policy would be handy in case an individual comes across any medical emergency either with him or her or with any of the members of his or her family.

"Remember, if you are a salaried person, you would retire too. In that case, the group medical insurance being provided by your employers would automatically end with your services. After retirement, it would be your standalone health insurance or medical insurance plan that would help you in case of any medical emergency. If an individual hasn't taken a standalone health insurance policy earlier, he or she won't be able to get any health insurance plan after retirement that makes a precarious situation for a retired senior citizen," said Solanki.

Hence, a group medical insurance is better than standalone health insurance but the later works when one is not employed or retired.