Individual Insurance
What Does Individual Insurance Mean?
Individual insurance refers to a policy that is selected and paid for directly by the policyholder. This differs from group insurance, which is often chosen by a third party, such as an employer, who provides a specific health insurance plan for all employees.
Insuranceopedia Explains Individual Insurance
An individual insurance policy is one that an individual purchases for themselves, taking responsibility for all premium payments. The policyholder is expected to understand the scope and details of the coverage, often with assistance from an insurance agent, broker, or company representative. This decision may not be entirely voluntary, as some states require individuals to carry certain types of insurance.
Individual insurance differs from group insurance, where the policy terms are set by a third party. A common example is group health insurance for employees, where the employer selects the policy on behalf of employees. In such cases, employees benefit as the employer may cover part or all of the premium costs.
