What is the difference between individual and group health insurance?

The distinction between individual and group health insurance primarily hinges on who purchases the policy and the scope of coverage. Individual health insurance is acquired by a single person for themselves, allowing them to tailor the coverage based on personal health needs and financial situation. This setup is particularly beneficial for those who are self-employed or do not have access to employer-sponsored plans.

On the other hand, group health insurance is often offered by employers to their employees, covering multiple individuals under a single policy. This can create a more cost-effective solution for both the employer and employees as the risk is spread across a larger number of policyholders, often resulting in lower premiums than individual policies would typically entail.

The other choices reference aspects that don't accurately capture the essence of individual versus group health insurance. Individual insurance isn't specifically tied to a corporation, while group insurance generally has the potential to be more affordable rather than more expensive. Furthermore, group insurance typically requires premium payments from both the employer and employees, contrary to the assertion that it requires no premium payment.