Individual Insurance
What Does Individual Insurance Mean?
Individual insurance refers to any policy that is chosen and paid for by the policyholder. This is in contrast with group insurance, which might be chosen beforehand by someone else, like an employer who assigns a specific health insurance for all of their employees.
Insuranceopedia Explains Individual Insurance
An individual insurance policy is one that is bought by an individual for themselves. So, the policyholder takes care of all the premium payments and is presumed to know the extent and details of the coverage (with the help or advice of an insurance agent, an insurance broker, or a representative of the insurance company). This effort might not be totally voluntary, since some states mandate its citizens to purchase insurance.
Individual insurance also differs from group insurance, where the policy is determined by another person. The typical example is group health insurance for employees, where the employer has already selected the policy on behalf of its employees. The employees benefit from this insofar as the employer also either shares in the payments or pays for the coverage in its entirety.
