Employer-Provided versus Non-Employer Insurance — Advantages and Disadvantages

• The insurance plans are usually group plans.
• Group plan premiums are usually lower than non-group plans, but you should shop around if possible.
• The employer may pay some or all of the premium.
• Premium payments are usually made by payroll deduction.
• Applicants probably won't have to answer a health questionnaire or pass a health exam.
• Pre-existing conditions may be covered possibly after a short waiting period.

• The plan choices may be limited.
• The coverage may not be sufficient to meet your needs.
• The employer may decide to drop coverage or the insurance company may cancel the policy.
• Most employer coverage ends when you leave the company. When you can retain it, it's often at higher cost.

• You can maintain your protection even if you change employers.
• You can compare plans and shop around for the best value.
• You can choose a plan to fit your needs.
• Price on life and long term care insurance could be less depending on your age, health, and other risk factors.

• Depending on the type of insurance, the selection of group or individual plans available may be limited.
• You have to pay the full premium, usually in monthly or quarterly payments.
• For life, health, and disability insurance, you will probably have to answer a health questionnaire and pass a health exam.
• You can be refused coverage for pre-existing conditions.