The premiums for group plans are usually considerably higher than for individual plans. True or false?

Understand the Problem

The question asks whether it is true or false that the premiums for group plans are usually considerably higher than for individual plans. It requires understanding the general comparative costs associated with different types of insurance plans.

More Information

Group health insurance plans usually have lower premiums compared to individual plans because the risk is spread over a larger group of people.

Tips

A common misconception is that group plans are more expensive due to covering more people, but the risk distribution helps keep premiums lower.

Sources

• Group vs. Individual Health Insurance: How They Differ - eHealth - ehealthinsurance.com
• Group Health Insurance Plan - Investopedia - investopedia.com