Medical situations can be unpleasant not just mentally, but also financially. Whether you are single or have a family, you should always be prepared for a medical emergency. You may have a corporate health insurance policy or health coverage from your current employer that covers your family members,
but will it be enough to pay the mounting expense of decent healthcare when you least expect it? This is not something you want to learn via trial and error. Furthermore, leaving jobs means losing coverage for everyone unless the new company, if any, commits to cover your family.
Let us look at why simply corporate health insurance is insufficient:
Only applicable during your employment
A group insurance plan offered by your employer is only valid for the duration of your employment with the organization. When you quit your job, it will be terminated. Hence, relying only on it for health coverage is dangerous. Furthermore, if your corporate policy also covers your family, they will be without health insurance as well.
If you apply for a new independent policy after losing your job, the waiting period will apply, which means you will be unable to claim despite holding coverage. Therefore, it is always prudent to have a separate health insurance policy from the beginning, while your workplace coverage serves as a backup.
Their sum insured is low
A company health insurance policy often has a lower insured sum, which may not be adequate when you need medical treatment. Even in the case of an old employee, there is minimal chance of the sum covered being increased. This necessitates the purchase of a separate policy in order to reap the benefits of a bigger insured sum.
Co-payment clauses
Group insurance typically has a copayment clause, which implies that the insurer will only cover a portion of the treatment costs. The policyholder must pay the copay percentage specified in the terms. Another advantage of independent insurance over a group policy is that most of them do not include such clauses, and the whole treatment cost can be claimed by the insurer.
Health coverage for the whole family
When it comes to group insurance provided by your employer, family health coverage is not the norm. In fact, just a few group insurance covers the policyholder’s family. A family floater plan, on the other hand, is single insurance that covers you, your spouse, your children, and your parents. Therefore, it is far superior to a group policy. Many insurers also offer riders that allow you to include your grandparents as well.
Corporate Policies are not guaranteed
The duration and terms and conditions of a company-provided group coverage are completely in the control of your employer. This implies that your employer can revoke the group policy and amend its conditions without facing legal ramifications in order to save money. Companies are not compelled to maintain their insurance in force. If they stop paying premiums for whatever reason, your health coverage will end.
Tax rebate
The premiums paid for independent health insurance coverage are tax deductible under section 80D. A group policy does not include such a benefit.
That being the case, it is clear that one cannot rely solely on an employer’s insurance to safeguard their own and their family’s health. Employer insurance can be a good backup policy, but for comprehensive coverage with a high insured sum, an independent health insurance policy or a family floater plan is the way to go.
