A group health insurance plan is quite a useful compensation benefit and here are five points in support of it
- Under a group health insurance plan you as an employee don’t have to pay any premiums which means your health insurance comes to you free of cost.
- 2 group health insurance not only covers you but in most cases, it also covers your spouse and up to two children sometimes three.
- The waiting period for hospitalization is waived off in the case of most group plans which means your health cover starts from the day it is allotted to you
- There are no medical checks before enrolling into a grouphealth insurance plan
And most importantly group health insurance plansgenerally cover pre-existing illness from day
One which is by far the biggest gain from these plans with these five powerful points it is quite difficult to argue that a personal health insurance policy will add any value to a corporate group health policy so here are the arguments presented by the opposing team who believe that it makes good financial prudence that you complement your group plan with a personal health insurance policy here are their points first the very assumption that all organizations offer health insurance benefits is flawed according to 2015 benefit trends survey only 44% of Indian companies of a group health cover as an employee benefit which means if you to move to one of those 56% companies which don’t offer group health insurance then you can face massive financial stress during a medical emergency second the continuity of group health benefits is often just a downturn away when companies will look at ways of reducing expenses and the acts will most certainly fall on the group Health Insurance Program.
As companies may reduce the coverage of a policy from five lakhs to two lakhs or maybe ask employees to copay some part of the premium or apply certain supplements the third argument is the general inadequacy of the group health insurance plan most group health insurance plans are either 2 lakhs or 3 lakhs of coverage now in an earlier video we presented a case to maintain your health insurance at least 6 times of your monthly salary for someone earning 80,000 rupees per month our salary or 2 lakh health insurance cover will be quite a case of underinsurance the difference between the requirement and the actual needs to be bridged with a personal health insurance plan finally.
A corporate health insurance plan will almost never last beyond your retirement even if you were covered through these plans throughout your working life to start a health plan at the age of 60 is never a good idea because in addition to the struggles of finding an insurer who will accept your case you have to deal with waiting periods exclusions on any pre-existing illnesses that you might have and heavy sub-limits on certain procedures a very effective strategy employed by lakhs of Indians is to have both the corporate plan and the individual plan this way you have an added cushion in case your medical emergency goes over the corporate plan limits along with an abundance of advantages like higher benefits no claim bonus lifelong renewability and tax benefits.