Group health insurance: How does it work when changing jobs?

Posted on: May 4, 2023 | | Written by:

Group health insurance: How does it work when changing jobs?

Published on May 03, 2023. EST READ TIME: 3 minutes

How does group health insurance work when switching jobs?

In today’s times, when healthcare costs are increasing by the day, investing in a good health insurance policy is the need of the hour. A healthcare plan can cover a chunk of your medical bills and ensure peace of mind during medical emergencies and planned hospitalisations.

Keeping the importance of timely and quality healthcare in mind, most companies in India cover their employees under group health insurance. This not only boosts employee satisfaction but also keeps them healthy and working. If you are employed in the corporate sector and covered under this healthcare plan, it is important to understand how the policy works, especially when switching jobs. Read on to learn more about group medical insurance and what you must consider before changing jobs.

Importance of having health insurance when changing jobs

If you are in a corporate job, it is likely that you are covered under a group or corporate health insurance policy. This type of healthcare plan provides coverage to a group of employees working in a company. It works like any other healthcare plan and helps cover the policyholders' medical expenses during planned hospitalisations and medical emergencies.

Considering the ever-increasing healthcare costs, it is important that you always stay covered under health insurance even when you are changing jobs. Suppose you have left your current job and are due to join the new one after 15 days. If there is a medical emergency during this period, you will be forced to pay the bills from your pocket. This can blow your savings in no time and make things difficult for you and your loved ones. Hence, it is essential to have health insurance in the interim period of changing jobs.

How corporate health insurance works between jobs?

A group health insurance policy will cover you only till your last working day in the company. This means that once you quit the job or get laid off, you cannot avail yourself of the benefits of your corporate health insurance policy.

Here’s what can be done in such circumstances:

• Ask the insurance company if there is an option to convert a group medical insurance policy into an individual healthcare plan. In most cases, insurance providers do this after completing the required formalities.

• Ask your employer if you can convert your corporate healthcare plan to individual health insurance and stay with the same insurer. Only some insurance companies and employers allow policyholders to switch from corporate health insurance toan individual or personal healthcare plan. Hence, it’s likely that your employer or insurer may not allow the switch.

Health insurance options when you are switching jobs

When you are switching jobs, you have two insurance options in hand:

1. Check with your employer or insurance company and port your group health insurance policy to individual health insurance.

2. Buy a new health insurance policy to cover yourself and your loved ones.

Things to keep in mind about health insurance before switching jobs

A group or corporate medical insurance policy is valid only until you are employed in the company. If you quit your job, the healthcare plan’s coverage will end on your last working day.

Hence, before you quit your job, it is important that you keep your health insurance coverage in mind and consider the following points:

• Do you have a family floater, individual healthcare plan or other option to cover your healthcare expenses?

• Is the sum insured by your personal health insurance policy adequate to cover your medical bills, or do you need better coverage?

• If you don’t have a personal health insurance policy, should you opt for a short-term healthcare plan till you find a new job?

• If your spouse has a healthcare plan, can you be covered under the same?

Factors to consider before leaving your current job

If you have already decided to quit your current job, keep the following points in mind:

• Check with your current employer or the insurance company if it is possible to convert your corporate health insurance policy into a personal one.

• If you have found a new job already, check whether there is a waiting period for the group or corporate medical insurance they offer. If they have a waiting period, you can check with your current employer or their insurance provider if you can convert the group health cover to a personal one. This way, you will not have to serve a new waiting period.

• Compare the healthcare plans offered by your current employer and the new one. If the current employer offers better coverage, you can try converting the same to an individual health insurance policy.

How to cover the health insurance gap between two jobs?

If you have quit your current job and want to take a break from work before joining a new company, the following are some important points to keep in mind about health insurance:

• Check your personal health insurance coverage:

If you are covered under individual health insurance or a family health insurance plan, check the policy renewal date and make sure you renew it on time. You can use this healthcare plan to cover your bills in a medical emergency.

• Buy short-term health insurance:

If you don’t have personal health insurance coverage, you can take a short-term healthcare plan to cover the gap.

• Take permanent health insurance coverage:

Even when you are covered under corporate health insurance, investing in a personal health insurance policy is always wise. This will ensure wider coverage during medical emergencies. Also, if you have a health insurance policy handy, you will not have to depend on your corporate or employer’s health insurance policy. If you decide to change your job again, your personal healthcare plan will cover your medical bills.

Conclusion

To sum up, health insurance is a significant investment that can save you from financial setbacks during medical emergencies. Keeping individual health insurance, a Mediclaim policy, or a family floater policy handy is wise, even if you are covered under group medical insurance. This will not only ensure wider coverage but also give you peace of mind when you are switching jobs. You can opt for add-ons, like critical illness insurance, to enhance the scope of your coverage. And since medical emergencies come unannounced, it is important always to stay covered.

FAQs

1. What health insurance options do you have when switching jobs?

If you are planning to change your job, there are two options for health insurance. You can convert your group health insurance to an individual policy or buy a new healthcare plan.

Some insurance companies do not allow policyholders to convert their corporate health plan into an individual one. Hence, you must get in touch with the insurer and ask if they have this option.

If you decide to buy a new health insurance policy, make sure you shortlist some good insurance providers in your region, compare the healthcare plans they offer, and choose a suitable policy and coverage amount.

2. Will my corporate health insurance policy stay valid after I quit my job?

Your corporate health insurance policy will be valid till the last day of your employment in the company. However, it is best to check with the HR of your company regarding the validity of your corporate health insurance.

3. How can I continue with my corporate health insurance plan after quitting the job?

If you want to continue with your corporate health insurance policy, check with your company’s HR or the insurer about the possibility. The IRDAI allows insurance companies to convert corporate health insurance policies to personal or individual healthcare plans.4. If I have a corporate health insurance policy, do I need a personal one?

It is always wise to keep a personal health insurance policy handy. The inclusions of group health insurance can be limited, and the sum insured may not be adequate for major hospitalisation. Also, a corporate health insurance policy will be valid only till the time you are employed in that company. Once you quit your job, the insurance will cease to exist. So, even if you are covered under corporate health insurance, you can buy an individual healthcare plan if it is financially feasible for you.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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