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Why Choose Group Health Insurance Over Individual?

July 20, 2022
Travis Bennett
12 MIN
There's no question health insurance is a smart investment.

If something terrible happens, you're covered – as the right policy gives you real peace of mind. Protecting your income and expenses until you're back on your feet.

When you're employed, health insurance is usually a given. It's often part of your compensation package, and the coverage is generally pretty good. But once you start working for yourself, that’s when things get off track. Insurance is tricky if you're freelancing, a small-business owner, or bootstrapping a startup. Plus, you'll likely only qualify for individual coverage. That means no  corporate deal. Instead, you're left to choose between individual plans that often have only sub-par coverage.

Or, in other words - your insurance will cost you more, with fewer benefits.

Why do I need insurance?

At the most basic level, insurance is to cover your risk. A backup plan should you get hurt, have an accident, or discover an underlying health issue. If you haven’t realized it yet, being uninsured is an incredible risk. You'll be on the hook for all your medical bills if something happens. And it's not only the uninsured who are at risk. Many people choose basic insurance with lower coverage to save on expensive premiums, and that can be a mistake too. Done like this, your insurance is more affordable, but it can put you in a difficult position after an incident.

Like a recent incident here in Singapore. An employer bought the required SGD $15,000 per worker in medical insurance, but it wasn't enough. The slashing attack she suffered has resulted in over SGD $100,000 in medical costs, so there’s a huge shortfall in what her insurance covered. As a result, she's had to seek help from a non-profit to crowdfund and raise the difference.

You must have good health insurance. And luckily for all the freelancers, entrepreneurs and small-business owners out there, there are good plans now available.

What is Group Health Insurance?

Group health insurance is precisely what it sounds like – an insurance plan for members of a specific group. For the most part, it's employees only. Or sometimes, you may get in if you belong to a particular profession (or union). As a rule-of-thumb, if you have the chance to get onto a group plan, take it.

Because group health insurance is incredible value-for-money.

If you're buying insurance as an individual, you'll lose out. Our founder, Helle Priess, faced this very issue when she became an entrepreneur. After leaving a stable job to chase her dream, her insurance premium increased by a factor of five. Even though she'd been with the same insurance company for ten years, she had to pay five times more for the same insurance. Isn’t that ridiculous?
Yet we see it time and time again. Many self-employed people get a terrible deal on insurance, and we’ve set out to fix it.

For premium Doerscircle members, we've made affordable international health insurance available to you. Click here to see the details.

Why is group health insurance cheaper?

One of the biggest benefits of group health insurance is the cost savings. Insurance companies love group plans. Because one deal can give access to hundreds (or thousands) of employees, insurers will often incentivize big businesses to get as many people on the group plan as possible.That means super-affordable premiums, with discounts and offers you'll never see on an individual plan. And while that doesn't seem fair if you're self-employed, you have to admit it makes commercial sense for the insurer.

Why does group health insurance cover more?

Better benefits go hand in hand with lower risk, because that’s the key to the insurance business model. The larger the group, the lower the chances an individual member makes an expensive claim. It's statistics 101. The more people on the plan, the safer it is for the insurer.So, it's in the insurer's best interests to sign up these larger groups of clients. To do so, insurers generally give group policies superior benefits and far better coverage. In some cases, they even make it easier for new people to qualify and join the group insurance plan.

It's easier to sign up for group health insurance

Choosing an insurance policy isn't an easy task. As you research all the different options, there's a steep learning curve. You've got to compare various offers, from many providers, across several agents. And you're likely operating from a minimal understanding of what "good"looks like in a policy. So, you'll take a ton of time to figure it all out. Alternatively, a group plan is far more straightforward. It's done for you and is already up-and-running. A specialist has already taken the time to research and negotiate the best deal - all you need to do is sign up and start getting coverage.

A group plan that belongs to the individual

Of course, group health insurance does have its downsides. The biggest is that it's usually owned and operated by a company. If you're an employee, all is good. But if you change jobs or decide to do something on your own, your health insurance is gone. So, you'd need to find new coverage and start over from scratch (and you’ll find it near-impossible to get any pre-existing conditions covered).

Here at Doerscircle, we want to solve the insurance challenge.

Partnering with Aon to give you access to a"portable" insurance option. A group plan that's completely separate from your employment, that’s tied to you as an individual. Think of it as the coverage you need at a price you can afford. And you won't lose out if you change companies, are in-between jobs or decide to follow your dreams. Wouldn't it be nice to get the same deal as a big business?

That's what we're now making available to you. Get exclusive access to Aon’s group health insurance, even though you're a freelancer, entrepreneur, or small-business owner.

If you want better coverage, click the link here to see the benefits you’ll get.  

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