What is the major difference between group and individual insurance?

The major difference between group and individual insurance is the way in which the insurance is obtained and who is eligible for coverage. Group insurance is typically offered through an employer or other organization to a group of people who meet certain eligibility criteria, such as being employees or members of the organization. The coverage is usually provided as a benefit to the group, with the employer or organization paying all or part of the premium. Individual insurance, on the other hand, is purchased by an individual directly from an insurance company or through a broker or agent. The coverage is tailored specifically to the individual's needs and circumstances, with the individual paying the entire premium. There are several other key differences between group and individual insurance, including:

• Underwriting: With group insurance, coverage is typically offered on a guaranteed issue basis, meaning that individuals are not required to undergo a medical exam or provide detailed information about their health. With individual insurance, underwriting is typically required, meaning that the individual may need to undergo a medical exam or provide detailed information about their health in order to qualify for coverage.
• Coverage options: Group insurance typically offers a limited range of coverage options, as the coverage is designed to meet the needs of a group of people with similar circumstances. Individual insurance, on the other hand, offers a wider range of coverage options, as the coverage is tailored specifically to the individual's needs and circumstances.
• Cost: Group insurance is typically less expensive than individual insurance, as the cost is shared among a group of people. However, individual insurance may provide better value for money in some cases, as the coverage is tailored specifically to the individual's needs.
• Portability: Group insurance coverage typically ends when an individual leaves the employer or organization that provided the coverage. Individual insurance, on the other hand, is portable, meaning that the individual can take the coverage with them even if they change jobs or leave the organization.

In summary, the major difference between group and individual insurance is the way in which the insurance is obtained and who is eligible for coverage. Group insurance is typically offered through an employer or other organization to a group of people who meet certain eligibility criteria, while individual insurance is purchased directly by the individual. There are several other differences between group and individual insurance, including underwriting, coverage options, cost, and portability.