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Why Individual Health Insurance Is A Must Buy Over corporate Health Insurance ?

Avinash was feeling bit relieved and at the same time tensed to go to his office for the last time before his retirement. Finally, the time had come to say goodbye to the office which he joined at the age of 25 years. After receiving warm retirement party, he came back in the evening with a heavy heart that now from the next day; he wouldn’t be going to office. In the night, he felt some uneasiness and was taken to hospital where after a series of tests, doctors found blockage in arteries, for which he was immediately operated upon. The sudden hospitalization gave him setback of nearly Rs 5 laths. Suddenly, the reality struck him— He is no longer covered under corporate health cover and he doesn’t have a separate mediclaim insurance policy now.

Sadly, this is the common scenario in today’s times. Many of us avoid buying health insurance, simply because we are covered under the corporate health plan. Most also feel that as they are healthy, they should avoid spending their money on health insurance, forgetting the fact that healthcare inflation is rising at an alarming rate. As per the report of the National Sample Survey Organisation (NSSO), the average medical expenditure per hospitalized person if treated in private hospitals was around four times than in public hospitals during 2014.

It is imperative to understand that most of the corporate health insurance policies offer coverage on the basis of the employee’s seniority and scale of salary. The same may discontinue or reduce after retirement. Also, the time you change or lose your job, you will not be covered under the corporate health insurance and there is no guarantee that the new employer will also offer you insurance.

It is strongly recommended to have your medical insurance plan over and above any policy that may cover you during employment and continues to offer coverage after retirement also. In this way, you can ensure that you don’t need to dip into savings to meet medical expenses.

Let’s look at the various reasons which prove that Individual health insurance is a better choice over corporate or employer’s health plan

Convenience to customize

You can easily customize your personal health insurance plan like adding add on covers to enhance the cover or introducing co-payment facilities to reduce the premium. Over and above, adding or removing family members can become an easy task as you have full control over the policy. This helps you keep abreast of all information about your policy its premium and its coverage too.

No claim Bonus / Cumulative Bonus Benefit

The major drawback of having a corporate insurance is that you will lose on the accumulated benefit that you have saved over the past few years of your employment. Your employer’s health plan will not let you carry forward the benefits when you leave the organization and move to another company. Hence, it’s advisable to have a personal insurance even if you have a corporate policy or group plan with your employer. Group health insurance plans do not offer no claim bonus or cumulative bonus for not making claim, which is a reward definitely offered under individual health insurance plans.

Post retirement problems

Like we all know health insurance premium rises with age, so if you rely on your employer’s health plan for lifelong then post retirement there are faint chances of you getting a health insurance plan in affordable premium and higher coverage. Most insurance company put entry age restrictions or does not cover many ailments once an insured enters a particular age bracket.  They also consider senior citizens are high risk insured, which leads to hike in premium. Hence, relying on corporate insurance for lifelong is not a good idea.

Though group health insurance plans are affordable and incur much lesser premium as compared to individual plan but it’s important to keep the above points in mind rather than just looking at the premium factor while buying a health insurance plan

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