Why Relying Only on Corporate Health Insurance Can Be Risky
Many working professionals feel secured by the health insurance provided by their employer. While it’s a great benefit, depending solely on it could leave you vulnerable at the wrong time. Here’s why having your own health insurance policy, independent of your job is essential:
1. Your Coverage Ends with Your Job
Corporate health insurance is linked to your employment. The moment you resign, retire, or get laid off, your coverage ends immediately. Medical emergencies don’t wait for you to find another job with insurance, which makes a personal health policy a safety net you can always count on. A gap between you end date and joining date leaves you uncovered.
2. Limited Coverage Amount
Most corporate policies offer a fixed sum insured, usually between ₹2-5 lakhs. With rising healthcare costs, especially in metro cities, this amount is often insufficient. A single hospitalisation due to a major illness can wipe out the entire coverage. A personal health insurance plan allows you to choose a higher sum insured tailored to your family’s needs. Also, once you exhaust this, you are uncovered, whereas we have promising insurance plans in the market which has restoration benefit. Even if you exhaust it, your Sum Insured is refilled.
3. Benefit of Growing Sum Insured
Many personal health insurance policies increase the sum insured (SI) at renewal for a lower additional premium if you stick with the same provider. In fact, some policies can even double your coverage within 5 years, while you continue paying premiums based on your original coverage. This “loyalty bonus” or “cumulative bonus” is something corporate health insurance will never offer, but the premium keeps increasing for them every year with practically no additional benefit.
4. No Control Over Benefits
Employer-provided policies are standardised group policies. You don’t get to choose add-ons like maternity cover, critical illness cover, or room rent preferences. With a personal plan, you can customise benefits according to your lifestyle and family requirements.
5. Lack of Continuity in Critical Times
As you grow older, the need for insurance increases. Unfortunately, that’s also when corporate insurance may reduce coverage or exclude dependents like parents. Having your own policy ensures continuity, regardless of your employment status.
6. Dependents May Not Be Fully Covered
Corporate policies often cover only the employee and sometimes their spouse and children. Parents, in-laws, or other dependents may not be included. A personal policy gives you the flexibility to cover your entire family without restrictions. We have recently come across instances where you can enroll either your in-laws or your parents in your corporate policy, while this is not true for all companies but many are following this standard.
7. Retirement Gap
Most companies stop providing health insurance benefits after retirement. At that stage, getting a fresh policy becomes difficult and expensive due to age and pre-existing conditions. Securing your own health insurance early ensures lifelong coverage. You can always take multi-year policy before retirement. With plans now of 5+ years at once, this makes it much more flexible.
8. Job Switch Delays
When you switch jobs, there can be a gap before your new company’s insurance becomes active. During this time, you may be left uninsured. A personal plan protects you from such gaps. You might even willingly take a few months break but end up not taking one in the fear of staying unprotected.
Final Word
Corporate health insurance is a great perk, but it’s not designed to be your primary safety net. A personal health insurance plan ensures continuity, higher coverage, and flexibility that no employer policy can match.
At Vipulam Financial Services, we can help you choose the right health insurance plan at the best prices. Learn more here.