For many employees, health insurance is one of the key benefits that comes with a job. It can help cover medical expenses when they or their family members need treatment, reducing the financial burden of an unexpected hospital visit.
However, relying entirely on an employer-provided health insurance policy may not be enough. The coverage is usually linked to your employment, which means a job change or loss of employment could also affect your insurance protection.
Having a separate health insurance policy can help bridge this gap and provide an additional layer of financial protection, regardless of your employment status.
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Let us look at the risks of just having corporate insurance:
Cover may end when you leave the job: Employer health insurance is provided as part of the employment benefits package. If you resign or lose your job, the group health cover may no longer continue.
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Limited sum insured: The amount covered depends on the plan chosen by the company. A basic policy may work for routine medical expenses. For major hospitalisation, you might have to pay extra.
Coverage can have limits: Group health policies can have terms and conditions that affect the amount you can claim.
These may include:
- Room-rent limits
- Co-payments
- Waiting periods for certain conditions
- Disease-specific limits
- Exclusions
- Deductibles
- Restrictions on certain treatments
The exact conditions depend on the policy. Employees should read the policy documents to understand these limits.
Family coverage may be limited: Some employer policies allow employees to include spouses. Incase you want to add beneficiaries, you need to pay extra. It is important to check exactly who is covered and how much insurance is available for each family member.
Employer benefits can change: Companies can change their insurance providers or modify the benefits offered to employees. The sum insured, premium contribution, network hospitals and policy terms may change during renewal.
Why a personal policy can help
A separate individual or family health insurance policy is not linked to your employer. It can continue even if you change jobs, subject to the policy terms and continued payment of premiums.
Having personal coverage alongside employer insurance can provide an additional layer of financial protection. It can also reduce dependence on one source of health insurance.
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