Are you thinking about applying for health benefits? There are two options: voluntary group benefits and individual benefits. Voluntary benefits are offered through employers, and employees can participate if they want to. Employees pay the premiums on their own. Individual benefits are plans that employees purchase on their own, with no involvement from their employers.
Before you can apply for a plan, you need to decide which option is better for you. For many people, voluntary benefits will be the right option. Here’s why voluntary benefits are the correct solution for those seeking healthcare coverage.
Benefit from Group Purchasing Power
A major advantage of signing up for voluntary benefits is the potential savings. When you pay for an individual plan, you could end up paying exorbitant fees for your coverage. Group benefits have lower premium rates because more people are being covered. The group has more purchasing power than you’d have on your own.
Group benefits plans often offer high-quality benefits for their members despite the lower premiums. If you sign up for a group plan, you may be able to afford better benefits than you could afford through an individual plan. If you opt for an individual plan, you could need to choose a lower coverage level to fit the coverage into your budget. Spending more money on lower coverage doesn’t make much sense, which is why choosing a voluntary group plan is a good choice.
Get Guaranteed Health Coverage
To apply for individual health coverage, you’ll need to provide the insurance company with personal medical information. The insurance company needs to know that you’re in good health, and then they can decide whether or not to provide you with coverage. If they decide you’re not insurable, you could get denied coverage.
Pre-existing conditions can be an obstacle with individual insurance plans. Pre-existing conditions are medical issues you’ve seen a doctor for in the past, even if the doctor didn’t diagnose you with anything. Some pre-existing conditions can make you uninsurable, while others will mean you have to pay a higher premium or get reduced coverage.
This isn’t a problem with voluntary group benefits. Since the benefits plan is offered to a group of people, not just you, you don’t need to provide the insurance company with medical information. If you’re in poor health and can’t get individual coverage, you can still get accepted into the group plan. If you apply for a plan through HCP, you’re guaranteed the Essential level of coverage, regardless of your personal medical history.
Pay Through Payroll Deductions
Convenience is another reason to opt for voluntary group benefits. Since these benefits are offered through employers, employers deduct employees’ premiums from their paycheques. The hospital you work for will deduct your monthly premiums, so you won’t need to worry about remembering payments. You also won’t need to worry about budgeting for your premiums. Since the money is deducted before you even get your paycheque, it was never yours to spend in the first place.
Individual benefits plans aren’t as convenient. Since the plan doesn’t go through your employer, you won’t be able to get payroll deductions. You’ll have to remember to pay the insurance company on time. You’ll also have to remember to set money aside for your premiums. It’s easy to forget to send in a payment on time, or to accidentally spend the premium money on something else.
Forgetting to pay insurance premiums can have a big impact on your plan. Your insurance company could decide not to renew your plan, or they could raise your rates. This won’t happen with a voluntary group benefits plan due to the convenience of payroll deductions.