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Know Why Employer Health Insurance Is Not Sufficient ?

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Companies offer many perks to their employees and one of them is health insurance. The insurance cover may include the employee’s family members as well but if you are thinking it is enough to protect you and your family from the rising medical expenses, then you are mistaken. Analyse and compare it with other plans and you will find that these plans, provided by employers, are limited in coverage and come with several loopholes.

Here are some reasons why employer health insurance is not sufficient and why one should have a wholesome secondary policy:

Employment Status: The insurance policy provided by your employer is valid as long as you are employed with the company. The day you quit, the policy gets terminated. If there is a medical emergency during this period when you have no policy, you will have to bear the hefty medical bills on your own. It is, therefore, advisable to have a secondary policy in addition to the one provided by your employer.

Limited Coverage: Most insurance policies offered by employers do not exceed INR 2 lakh per annum. This amount is sufficient only for small illnesses. For those suffering from major illnesses, you might need a substantial insurance cover to take care of the hospital bills in times of emergency.

Employer Can End the Cover Anytime: Remember, the health insurance provided by an employer is just another perk of your job and not a mandatory feature. The management can choose to remove certain benefits, make you pay the premium or discontinue the policy when faced with a financial crisis.

Group Insurance: Employers provide group insurance, that is, only the employee may be covered and not the dependents. This means if any other member of the family is hospitalized, the insurance policy will not pay for the expenses incurred. So, it’s very important to have a secondary health insurance cover so that spouse, children and dependent parents can be brought under the coverage of the policy.

Cannot be Converted to Individual Policy: If an employee quits or the employer discontinues the policy, it cannot be converted into an individual policy. The policy is an agreement between the company and the insurer, and no changes can be made to it.

Customized Options: The terms and conditions of the policy are decided by the employer and the insurance company. What critical illnesses insurance covers and diseases are to be covered, inclusion of dependents, minimum and maximum sum assured, and hospital admission are all customized as per the convenience of the employer. You cannot enjoy a lot of privileges other policy holders enjoy and cannot make changes in your medical policies as and when needed.

Little Scope for Future Planning: Group plans are mostly for ordinary and routine health expenses. If you are planning to start a family, this policy will not take care of your future medical assistance that your family might need.

Diwaker Asthana Health Insurance industry experience of 20 years

Diwaker Asthana recommends buying my:health Suraksha Insurance to get the benefit of a wide range of coverage that the plan offers. For some unique benefits like cashless home health care and in-patient treatment for mental illness, he believes this plan will benefit customers in the long run.

Know more about our experts

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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