Does your company take care of your health insurance needs? Here’s why you need a separate plan

Raunaq has been very busy for the last few weeks. The company where he is working provides him with a group health insurance plan. However, recently when he was going through the details of the same, he found it to be less than ideal to his needs.

Now, he knows that he needs to figure out his health insurance situation. But it’s not a top priority for him. He thinks that it is an unnecessary hassle and he will get to it when he has the time.

But is that really the approach he should be taking? Should he just be satisfied with a group insurance policy? Or should he simply spend some time on the internet and research about health insurance policies that come with attractive premiums and coverage options?

Are Group Health Insurance Policies Enough?

Medical needs can strike from any direction. And to be prepared for that, Raunaq needs proper coverage that he won’t get with a group health insurance policy. There are also other drawbacks of only relying on a group health insurance policy provided by an employer. These drawbacks are:

• Improper Coverage

Group health insurance plans are drafted by insurance companies by only keeping the most common ailments in mind. This means that most of these policies do not provide coverage against serious medical conditions that you or your family could be affected by.

Group insurance plans often do not contain coverage for critical illnesses and surgeries. This means that Raunaq is taking a lot of risk by just relying on a group insurance policy.

• Incomplete Coverage for Hospitalization Charges

In group insurance policies, one is not guaranteed 100% coverage of hospitalization charges. This means that unpredictable costs like surgical requirements, focused treatment methods, and associated medical charges are not covered.

• Limited Coverage Periods

As an employee, Raunaq will only enjoy group insurance policy benefits as long as he remains with the same company. This means that if he decides to switch organizations or gets terminated tomorrow, then he would have no protection for medical expenses.

• No Score for Tax Deductibles

If you want to get tax deductibles on your health insurance premiums, then you cannot do that if you just have a group health insurance policy with your employer. Individuals are eligible for tax exemption as per Section 80D of the Income Tax Act if they have a personal health insurance policy.

• No Guarantee of Health Cover with the Job

According to a study conducted in 2015, only 44% of Indian companies offer group health insurance policies to their employees. This means that Raunaq might not even be provided with a group health insurance policy if he changes his position or organization. This can directly mean a lot of financial stress for the individual and his or her family if some medical emergency did strike.

• Possibility of Reduced Coverage Amount

Let’s assume that the group insurance plan that Raunaq’s company is providing right now is excellent. However, what is the guarantee that this plan will stay excellent? According to several surveys, companies can decrease insurance coverage for all employees if they are going through financial hardship.

The group cover might not also include your spouse, parents, or children. The policy coverage benefits might also shrink. Or the company might ask employees to co-pay some part of the premium.

• Lacking Coverage Amount in Most Policies

Most group insurance policies provide a maximum total cover of INR 2 lakh to INR 3 lakh. This is not enough money when you consider factors like rising health inflation. The proportion of health insurance coverage should at least be 6 times your monthly salary.

This means that if an individual is making INR 80,000 per month and the policy coverage amount is INR 2 lakh, then he or she is quite under-insured.

The correct amount should be around INR 4,80,000 or more. And this difference can only be bridged if the individual is getting an additional personal health insurance policy to provide coverage to the entire family.

• No Insurance Coverage after Retirement

You should also be familiar with the fact that a corporate health insurance plan will never last beyond your retirement. This fact will hold true even if Raunaq works his entire lifetime in the same company!

But what if Raunaq buys a health insurance plan at the age of 60 years? Now, that is not a good idea at all. There are many struggles that Raunaq will have to go through at that age, including:

• Raunaq will struggle to find a good insurer who will accept his case at that age
• He will have to deal with long waiting periods
• Pre-existing illnesses will be excluded from the policy coverage
• Heavy sub-limits will also be imposed on Raunaq throughout the process and after its completion

Other drawbacks of only relying on a group health insurance policies are:

• General consultation charges are not covered
• Little to no coverage is provided for diagnostic charges
• No flexibility to customize the plan according to the needs of the policyholder or insured individuals

After hearing so many disadvantages of relying on a group health insurance plan, Raunaq is horrified. He wants to get rid of these disadvantages. He is going to start with reevaluating his to-do priority list and buy a health insurance plan as soon as possible! 

How Can I Buy the Best Health Insurance Plan for Me?

If you are anything like Raunaq, then you want a health insurance plan that provides comprehensive coverage. You also want a plan that comes with attractive premium rates. Ideally, Raunaq is also looking for health insurance policies that provide coverage to his entire family.

You can look for similar health insurance plans online that would provide an added cushion for medical expenses in cases of emergencies. You can get plans with benefits like no claim bonus, lifelong renewability, and tax benefits.

Buy Health Insurance Policy Online!

These days there are several websites on the internet that provide you with the freedom of comparing policies. You can filter thousands of health insurance policies at the same time to find the best policy for you and your family.

At the end of the day, the only thing you need to remember is that the health insurance plan should suit all your needs and requirements. And most of all, do not rely on a corporate health insurance policy as Raunaq did at the start.

Get your health insurance policy requirements sorted as soon as possible! Do not wait for a medical tragedy to strike and drain away all your hard-earned savings.