Compared to group insurance, individual policies are generally:

Individual insurance policies are generally more expensive compared to group insurance. This cost difference arises from several factors inherent to individual policies.

Firstly, group insurance typically spreads risk across a larger pool of insured individuals, allowing for lower premiums due to the collective bargaining power of the group. Insurers are able to provide lower rates as they can predict and manage risks more effectively when covering a large group of people, some of whom may have lower health risks.

Secondly, individual policies require underwriting for each applicant, which can lead to higher costs. Insurers assess personal health histories and risk factors before issuing a policy, and this thorough evaluation can result in higher premiums, especially for individuals with pre-existing health conditions or other risk factors.

While individual policies often offer greater flexibility and customization—allowing individuals to select coverage options that best meet their personal needs—these benefits come at a premium compared to the more standardized coverage often found in group insurance plans. Hence, due to the personalized nature and the associated underwriting costs, individual insurance policies are typically more expensive.