Health Insurance Tips for People Switching Jobs

Posted on: Jun 12, 2025 | 3 mins | Written by: HDFC ERGO Team

Health Insurance Tips for People Switching Jobs

Changing jobs is more than just updating your resume or packing your desk. It brings several financial and logistical responsibilities, one of the most crucial being your health insurance. In India, many employees are covered under employer-provided group health policies, which lapse as soon as you exit the organisation. Unless you've got a plan in place, you risk facing unexpected medical bills during the job transition.

This guide covers essential health insurance tips when switching jobs to ensure you stay protected.

Understand Your Current Health Coverage

Before moving to a new job, understand the extent of your current coverage:

• When does the current policy expire?

• Is there any grace period after leaving the job?

• Does your policy cover dependents, and will their coverage also stop?

Speak with your current HR or insurance administrator to get these details.

Secure a Personal Health Policy

Relying solely on employer-provided health cover can be risky. If there’s a gap between jobs, you could be left uninsured.

A personal health plan ensures:

• Continuity in coverage

• Customisable sum insured

• Independent claims process

It is smart to hold an individual policy even when covered by your employer.

Buy Short-Term Health Cover If Needed

If there’s a waiting period at your new job before health benefits kick in, consider purchasing a short-term plan.

Such policies cover you temporarily and are especially useful:

• During notice periods

• While on a career break

• When freelancing or consulting

Explore Medical Insurance Online

When time is limited during job transitions, purchasing medical insurance online can be a convenient solution.

Benefits of going digital:

• Easy comparisons

• Instant quotes

• Paperless transactions

• Faster policy issuance

Look for trusted platforms that allow policy customisation and clearly list inclusions and exclusions.

Consider Critical Illness Add-Ons

When reviewing policies, especially personal ones, it is worth considering critical illness riders.

These riders provide a lump-sum payout upon diagnosis of illnesses like:

• Cancer

• Stroke

• Heart disease

This money can cover costs beyond hospitalisation, including:

• Recovery time

• Loss of income

• Long-term treatment

Evaluate Family Coverage

If your current employer's policy covered your spouse, children or parents, you need to plan for them too. When switching jobs:

• Ask if dependents are covered under the new plan

• Consider a family floater if buying a personal plan

Continuity in their coverage is equally important.

Ask Key Questions to Your New HR Team

Before accepting a new role, clarify these insurance details with the HR department:

• What is the waiting period for group health cover?

• What sum insured is offered?

• Are pre-existing diseases covered?

• Does the plan cover dependents?

Understanding these factors helps avoid surprises later.

Keep Medical Documents Handy

In case of any claims or policy migration, keeping your medical records accessible is vital. Maintain:

• Health reports

• Previous policy documents

• Claim history

These can ease transitions and help when porting or reapplying.

Get Covered During Probation

Most employers begin health cover only after probation. During this time:

• Keep your personal policy active

• Opt for temporary coverage if required

• Avoid policy lapses due to missed renewals

Being uninsured, even for a few months, can prove costly.

Don't Forget Tax Benefits

Health insurance premiums qualify for deductions under Section 80D of the Income Tax Act.

You can claim:

• Up to Rs 25,000 for self, spouse, and children

• Rs 50,000 for parents (if they are senior citizens)

These tax benefits continue even if you purchase medical insurance online during your job change.

Compare Multiple Plans

Not all health policies are equal. While switching, compare:

• Premiums vs. sum insured

• Room rent limits

• Sub-limits on treatments

• Network hospitals

• Claim settlement ratio

Conclusion

Switching jobs is a great opportunity for career growth, but can be risky if your health insurance lapses. Planning your transition wisely, porting policies and buying a separate plan if needed can prevent financial shocks.

Also, platforms offering medical insurance online can help you make informed choices with ease. Whether you are in between jobs, switching employers, or entering the gig economy, securing your health insurance should be a top priority.

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

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