31 Oct 09 Group Health Insurance Pros And Cons

The most common way to qualify for group health insurance is though an employer. While group health insurance offers several benefits, it may not be the best choice for you.

Anyone who is a member of the group must be allowed to have the same health coverage as all other members of the group. If your plan has an open enrollment period, you can join or add family members. Even if you or a family member has had cancer or is a diabetic, you can join the group health policy, although there may be limits to coverage for pre-existing conditions for the first year.

Once you reach age forty to forty-five, you will find that cost for group insurance is less that you would pay for an individual plan. In this age bracket, you will find that insurance costs about the same for individual policies as for group health insurance. As you age, individual policies get more expensive.

You will also find that individual policies have some disadvantages also.

First, you do not get to choose your own coverage. If suddenly the plan administrator chooses to change the insurance plan, you either have to go with the new plan or find your own insurance. This means that you can be in an insurance plan that works very well for your family one year, but the next year you can have insurance that is a very poor choice for your family.

If you are young and having to pay for your own insurance, the group plan may cost you more than an individual policy. Insurance companies feel that younger people are a lower risk so they can have insurance at a lower price for an individual policy. Be sure that you take this into consideration before automatically adding a spouse or children to a group policy from your work.

Many people that are enrolled in a group policy have an employer that is paying part of the expense. Insurance is one of the most sought after benefits for working persons.

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