Is Corporate or Company Health Insurance Policy Enough?
Health Insurance comes to your rescue to meet the expenses when you are being hospitalized due to accidents or any ailment. Corporate or Salaried employees are often provided with health insurance by their employers. Many people might think that having a corporate Health Insurance policy is enough. But is that really so? One important question that puzzles the mind of salaried employees is whether they should or should not go for independent health insurance plans besides the one provided by their employer.
Companies generally provide group mediclaim policy for employees. Group health insurance benefits the employees of an organization in a group and the features are customized keeping in mind group interest instead of personal interest. But, having a group mediclaim is not enough in today’s world where health issues and healthcare expenses are increasing.
Listed below are a few reasons, which justify having independent health insurance besides corporate health insurance:
Corporate Coverage Lasts Only till the Tenure of Your Employment
You will not be covered by your company’s group health insurance policy when you leave your job for any reason as the validity is only till the tenure of employment. If you decide to switch your job, there are chances that your new employer might not provide health insurance. Even if he/she does, till the time you join you will have no health insurance coverage. And if you plan to invest in independent health insurance after leaving your job, you will have to wait a few years to serve the waiting period. Additionally, your age will also increase, which will have a bearing on the premium amount.
Low Insured Sum
Group health insurance does not come with a high insured sum. The low sum is not often enough for meeting the medical expenses of a small family given the rising graph of healthcare costs. Corporate policies rarely get revised to a higher insured sum even if you are an old employee. Hence, it is recommended to have an independent insurance cover with a high insured sum to be able to meet the expenses without burning your pockets in case any serious health issue shows up.
Group medical insurance schemes offered by Companies mostly contain a co-pay clause. This means that the insurance provider will cover only a part of the medical expenses and the rest will have to be borne by the insured. This serves no purpose in meeting your expenses at the time of need. Unlike group insurance, independent insurance plans do not contain such clauses. The whole amount is being met by the insurer up to the sum insured.
Coverage for Family Members
Very few employers provide group mediclaim policy to their employees, which covers their family members too. This means that only the employee’s medical expenses will be borne by the insurer. The separate policy has to be taken for the family members. But in the case of an independent health insurance scheme, family members could also be covered in one single plan. Hence, the medical expenses of the concerned person as well as his dependent family are taken care of by the insurer. Family members include dependent parents and children.
No Guarantee of Continued Insurance Plan
Group insurance is provided by employers as perks and benefits as a means to retain employees for a longer term. The employer/company reserves the right to withdraw the policy for the benefit of the company without any legal consequences. Employers are not liable to keep the insurance running and active. If the company stops paying the premium due to any reason, you will no longer be insured. Hence, you should not completely rely on company insurance and have independent health insurance. Also, employers can at their discretion change the terms and conditions of the policy to save money. Doing so might remove certain coverage and beneficial clauses. As a result, the insurance will not prove to be advantageous to the employee.
Independent health insurance qualifies you to avail a deduction of the premium amount under section 80D of the Income Tax Act, 1961, thus reducing your total tax liability. Group Insurance policy does not qualify for such a rebate.