According to the IRDAI’s Consumer Education Website, “A group insurance policy gives you advantages of standardized coverage and very competitive premium rates. You can avail of group insurance policies that a group you belong to takes
Thus, a group health insurance plan is meant to offer coverage to a group of people as opposed to a stand-alone health insurance plan that offers coverage to an individual/family. A corporate health plan
is attractive but the question that needs to be answered – does it suit your or your family’s requirement?
Your requirements will vary with your age, life stage and family. Health expenses become frequent and bigger in the old age or if you have elderly parents to take care of. Most Indian corporates provide a standard health cover for their employees, however, it still is your prerogative to evaluate its true worth. Most Indian companies spend 90 per cent less, in terms of benefits and healthcare compared to their counterparts in the west. So should you be only depending on your employer’s health plan?
Here are 5 quick pointers on why you would require a separate health insurance plan besides your corporate plan:
Restriction on number of members covered- The health plan offered by your company may not cover your spouse, children, and parents. So, in order to make their future secure, a separate health cover will be required, especially if you have older parents to take care of.
Restriction on cover or limits- According to a report, 76 per cent of companies are have co-pay and room-rent limits in their group plans. And, your employer health cover is not an exception and may pose limit/restrictions on the most vital elements of a health plan like pre-existing disease, copayment, sub-limits and hospital room rent.
End of job tenure- Terminating your employment, switching to part-time job, change in company policy, or retiring are few of the factors that may make you ineligible for the group health insurance. And then, there is no guarantee you’ll get the same kind of health coverage and benefits in your next company.
More claim(s) in a year- Most corporate plans are standard and not customized to your specific needs. The biggest shortcoming of these plans may be the cover amount itself. If unfortunately you end up having more than one claim in a year and you exhaust the sum insured of your corporate health insurance policy; the residual amount will have to be paid as an out-of-pocket expense, which will put a dent in your savings.
An employer provided insurance is a good thing, but it’s only wise to supplement it with your own health cover. It helps you prepare with an adequate cover for an unforeseen future.
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