Corporate health policy is a type of group insurance in which an employer buys for the benefit of its employees. Insurers offer different type of health plans to secure employees of a company, professionals in a group, members of societies, etc. Corporate health plans usually offer medical coverage to insured (self), spouse & children.
People mostly avoid buying family health insurance as they already are covered under a corporate health insurance plan. No one wants to spend extra on health insurance when there’s already a group health policy offering coverage free of cost. But, many of us often forget that corporate health plans aren’t enough to meet the healthcare needs of the entire family.
Unfortunately, we also forget the fact that healthcare inflation is rising at an alarming rate, and group health plans do not provide comprehensive coverage. Therefore, being underinsured is nearly the same as not being insured at all.
Being underinsured gives a false feeling of being insured but doesn’t serve the actual purpose. More often than not, you will have to foot the bill in case of a medical emergency. The rising healthcare costs and higher incidence of health problems stresses on the need to have separate family health insurance coverage.
Why Corporate Health Insurance isn’t enough for your Family?
Here are 7 reasons why a corporate health plan isn’t enough, and you need to have a family floater health plan to secure your family: –
- Corporate Insurance cover goes away as you Leave your Job
Insurance provided by your corporate health plan is only valid as long as you are an employee of the firm. As soon as you leave the job, your insurance coverage will terminate without any reason. So, if you get sick and require medical treatment during the period you are switching jobs, you will have no health cover to protect you, and you will have to pay out-of-pocket.
- Employer Insurance has Limitations
Health insurance plans offered by employers are restrictive as they do have a high sum insured.. Even if you don’t have dependent children or parents, you must keep the future in mind when you will have a new member in your family. And if your parents do not have any insurance, it is essential to have an insurance policy that can cover everyone under a family floater.
- Corporate Covers are rarely Revised
Group health plans are fixed and are rarely revised. So, there’s very less hope that it will be revised in the future, even if you stay in the same job for many years. After a time, with responsibilities of family, you will feel that your corporate health plan isn’t enough.
- Corporate Plans can be Restrictive
In addition to a low sum insured, insurers may have other limitations to restrict the health cover offered under a corporate plan. Some plans do not cover dependents at all, while some may have sub limits on benefits such as hospitalization, health checkups, ambulatory charge, etc. and you will have to foot the bill yourself. Plus, there’s also the possibility that your employer discontinues providing health insurance or may be reduces the level of coverage as a part of cost-cutting.
- It is not Portable
Employer-offered health plans do not come with the portability option. So, in case you wish to switch to a provider who offers better coverage and benefits, you cannot. However, in the case of independent health insurance, you can port your policy anytime to another insurer.
- Coverage after Retirement
There will be a point when you will have to retire, and once you retire, you will be left uninsured in case you do not have an individual health policy. If you consider buying a health policy after you retire, you will have to pay a high premium. As insurers consider that people, above 50 years of age, become more susceptible to health problems or are likely to have pre-existing diseases, the associated risk increases and so does the premium. Plus, you will have to undergo medical tests to buy health policy.
- Personal Health Insurance Plans offer Better Benefits
Not only do corporate health plans have lower sum insured, but they also have sub limits on other benefits, which is not the case with personal health insurance plans. Offering a range of sum insured options, personal health insurance health plans also come with additional advantages. Further, the premium paid towards health insurance is also eligible for tax deduction under Section 80D of the Income Tax Act.
Why Buy Family Health Insurance?
Insuring your family under a single family floater health plan is a good way of covering your entire family and also saving your money. When compared to an individual health policy, a family health plan is much more affordable.
The one biggest advantage of a family health insurance plan is that in case a family member gets ill and requires medical treatment, the total sum insured can be utilized in the treatment of the family member. As the number of insured members under a family plan is more, it has a relatively greater coverage than individual plans. A family floater health plan usually covers the self, spouse, children and dependent parents.
Bottom line –
It is strongly recommended to have a family health plan over and above any health plan that is offered by your employer during employment. You can explore different health insurance plans online and choose one that suits your requirements and budget. Having a personal health insurance policy ensures that you are covered appropriately and you won’t have to dip into savings to meet medical expenses if and when a medical emergency arrives.