4 Reasons Why You Should NOT Rely Solely On Your Company Insurance

Group insurance policies are those health insurance plans that are offered to more than one person. These policies are offered to a group of people associated with an organisation. This can be either a bank, co-operative society or even business organisation. The most common place where a group insurance policy is subscribed is the workplace. Hence, many a times, a group insurance plan also goes by the name of a corporate insurance cover.

Employers generally buy these health insurance plans for their employees. This way, the health of the employees is insured. Not just the employees, corporate plans extend coverage on an optional basis to the family members of the employees. Thus, any medical expenses for you or your family can be provided for using a corporate insurance policy.

The benefits of a corporate insurance cover include premium being paid by the employer. This amount of premium serves as an added perquisite over the salary benefits. Thus, health insurance coverage is available as a part of your emoluments.

Next, the insurance coverage under corporate plans have no waiting periods unlike standard health insurance plans. Hence, all the beneficiaries are covered right from day one.

Medical check-up is a common requirement when purchasing a health insurance policy. But that isn’t the case when subscribing to corporate plans. There is no requirement of a medical test thereby offering quicker coverage.

Further, pre-existing conditions or already existing ailments have the effect of either increasing the premiums or having a longer waiting tenure till the disease is covered, or even both. But that isn’t the case for corporate policies. A corporate plan offers coverage even for pre-existing ailments right from day one. * Standard T&C Apply

With all the above benefits, employees that are covered under a corporate policy often put off buying either individual policies or health insurance plans for family. Two reasons for it being redundancy of insurance coverage and an increase in insurance expenditure. But that isn’t a prudent move. Here’s why it isn’t a smart choice to entirely rely on your corporate insurance plan:

  1. Corporate plans are linked to employment

Since a corporate health policy is linked to your employment, it is the number one reason why you shouldn’t entirely rely on it. The insurance policy offers no coverage either for you or your beneficiaries after the employment ceases. Such cessation can either be due to retirement, termination or even change of employment. For times of retirement, it can prove to be risk move as it is when the dependence on a health insurance policy increases.

  • Corporate health plans are not guaranteed with jobs

ET money states that around 44% of the companies in India offer such corporate insurance policies. Thus, if your company is among the other 56%, then you are left with no health coverage for times of any changes in employment.

  • The coverage isn’t always sufficient

The coverage under health corporate policies isn’t always sufficient. Since the plans are purchased on a generalised bases for all the employees, the coverage isn’t tailored to suit your and your family’s requirements. Thus, you might be required to pay from your pocket for the treatment even if you have a corporate health insurance policy. However, buying top up health insurance can be a workaround to this situation.

  • The coverage can be modified in times of financial crisis

If your employer is undergoing financial hardships, often the employee perquisites are the first to be compromised. So, it is best that you do not rely solely on a corporate health policy and buy a standalone family plan or individual policy based on your medical coverage requirements.

Please note that insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.

By Richard