Despite being covered under corporate health insurance policies, you might have come across questions like: Why should I buy a personal health insurance policy? Is it really needed?
Although, these policies offer similar coverages as personal health insurance policies. Yet, there are a few added advantages like these policies also provide coverage to an employee’s family at an extra premium depending on the policy but, the latter is restricted to the individual himself, etc.
But there are also disadvantages that come along with a Corporate\ group health insurance plan compared to corporate health insurance policies. There is a probability that these added disadvantages may not provide you with sufficient coverage you need.
To overcome these disadvantages experts stress on having a personal health insurance policy in addition to corporate health insurance policy.
Hence, Let’s dive deep into it to understand what these disadvantages are and how having a Personal health insurance policy in addition to corporate health insurance policy acts as an added cushion to your medical emergency:
Wider options: Under group health insurance, your company/employer designs the policy basis of a larger group. Hence, the insurer indemnifies your health care needs depending on the coverage opted by the employer, which may or may not align with your specific needs. Personal health policies give individuals more control over their health coverage, policy features, etc. In addition to this, you can choose from a wide range of insurance providers and policy options available in the market.
No-claim bonus: Your corporate health plan does not offer no-claim bonus, whereas personal health insurance plans provide various benefits on insurance enhancement like restoration, rest, and no-claim bonus, or premium discounts for every claim free year.
Additional tax benefits: For personal medical policies, depending on the tax bracket you fall under, you also get tax deduction of the premium paid up to INR25,000 or INR50,000 depending upon the conditions you meet u/s 80D of Income Tax act.
Renewability: Personal health insurance policies can be renewed till lifetime or 100 years, unlike Group health insurance policies, which end when you change your job or retire. So, if you solely depend on the group insurance policy, then purchasing a health plan at the age of 60 years is never a good idea. In addition to the struggles of finding an insurer who will accept your case, you have to deal with waiting periods and exclusions on any pre-existing illnesses you might have, including having heavy sub-limits on some procedures.
Extensive features: Group insurance policies have coverage limits for specific treatments or procedures. Many such plans provide coverage of up to INR 2-5 Lakhs. However, due to the increasing healthcare inflation, minimum coverage should be at least INR5 Lakhs. Instead, Personal health insurance policies provide higher coverage limits of a definite amount, giving individuals more protection against unexpected medical expenses. A personal health insurance plan can bridge the coverage gap between the individual’s requirement and the actual need.
Although, personal health insurance policies have benefits, it also has constraints like extra cost and waiting period, during which the policy does not kick in. Hence, it is better to choose a health insurance policy with shorter waiting periods in case of maternity and pre-existing conditions.
Conclusion: A very effective way to plan your medical emergencies would be to have both, corporate and individual insurance health plans. It will act as an added cushion when your medical emergency exceeds the corporate plan coverage limit. In addition, you will have various advantages like higher benefits, no claim bonus, lifelong renewability, and tax benefits.
Confused, Which individual health insurance policy will best meet your requirements?
Book a one-on-one free call with our financial experts, they’ll help you not only consider the various options but also, choose the option which best meets your requirements.
Although, personal health insurance policies have benefits, it also has constraints like extra cost and waiting period, during which the policy does not kick in. Hence, it is better to choose a health insurance policy with shorter waiting periods in case of maternity and pre-existing conditions.