Does you company cover you under their health insurance plan? However, in the wake of increasing medical inflation, frequent job switching, lay-offs and early retirements, it is important to have a good backup in the form of a suitable Individual Insurance Policy.
Let’s talk about the limitations of a corporate group policy.
When You Switch Companies or are out of Job
If you are depending on your company’s health insurance plan then if you are switch companies, you lose all the benefits earned on the previous policy. In a crisis situation wherein you lose your job then you will be without insurance.
When you Retire or Age
Once you retire, your company policy ends too. At a later age, it is difficult to get an insurance policy and the premiums are very high. Moreover, if you develop an ailment like diabetes, getting a policy of your choice will be nearly impossible. But, if you invest in a good policy earlier, you can enjoy the benefits of claim free years. Your sum insured will increase gradually and you can reap the benefits in your later years and post retirement.
Extended hospitalization
If you happen to be in a situation of an extended hospital stay, the major charges are the room rent and the medical bills. The limited sum insured of your company’s health policy, may not be adequate to cover these charges, leading to heavy financial investment from your end. Your individual policy benefits can be added to your corporate policy and save you from a major financial blow.
No Claim Bonus (NCB) not earned
With a corporate policy, you do not get any advantage for a claim free record. With your individual policy, you get a good history with the insurance companies and you get the No Claim Bonus reward. This is especially helpful, as the according to WHO, the current medical inflation in India is at 20% per year, whereas income increase is at 10%. Accruing a good NCB amount will keep you on top of your medical expenses. As the years go by, you will have a high sum Insured along with NCB with a gradual and affordable increase in premium.
Limited Flexibility
A group insurance policies are constructed according to the company’s policies and the will of your employer with little or no flexibility to accommodate your health needs unlike an individual one.
The table summarizes the major differences between the two policies. You can get a fair sense of what you can expect from each of them.
Read more about Maternity cover
Read more about How do I choose best plan for parents?
During claims, make sure you use your corporate policy and run a claim free individual policy for unforeseen and post retirement medical treatments.
So, once you have decided to opt for an individual plan, it’s important you do your research, obtain the best quotes and make comparisons. You can compare multiple plans and find the one which fits your needs at Turtlemint.
Read also What is insurance and how does it works?
Read also An anatomy of an health insurance plan
Read more about Dejargonizing health insurance terms
