Is your employer health insurance enough? What can go wrong


Most of us are offered employer health insurance as a perk attached to our jobs. It has become the norm now, and some toil hard to convince their companies to sign them up for it. It is indeed a great thing to have, but are you aware of what’s covered under it? It may come as a shocker that the usual coverage doesn’t include everything. Details of coverage are often not discussed at length with the employees, or worse yet, there is no communication at all. It is when an employee faces a critical illness that they come to know of the limitations. 


  • YOU LOSE YOUR JOB; YOU LOSE YOUR HEALTH COVER  – When you lose your job, not only do you lose your job, but also the health insurance that goes with it. The common practice these days is to fire employees who fall sick. If you are unfortunate enough to lose your job because of an illness, any benefits attached to the employer-sponsored group policy will be ditched, and you will have to start from scratch. An individual health insurance policy is an effective way to protect yourself against such uncertainties; it’s affordable and provides a lot of flexibility. While the premium for a cover that extends to your family members will be slightly more, it is well worth the expense.
  • INABILITY TO OPT FOR CUSTOMIZATION – The group policy in India is a standardized one with minimum requirements. This means that you will have no option but to accept what the insurer generally offers, therefore leaving no customization room. You may not find specific types of treatments or diagnostic tests covered in it. In such a case, even if you pay for treatment using your health insurance cover, you may end up spending more than you can afford. In addition to this, some employers get a bonus from their insurance provider for referring employees. If your employer falls in this category, any benefits will be passed on to them. This means that you may have to pay even more out of your pocket for the same treatment.
  • CONTINUATION OF THE PLAN IS NOT GUARANTEED – If one loses their job, a group policy will cease to exist, and all your medical expenses will have to be borne on your own. Furthermore, even if you quit on mutual consent, the insurance company can deny you any benefits after six months of employment with no reason stated. Therefore, it is advisable to buy an individual plan; if you don’t, and if anything happens to you after leaving the company, there will be nothing to fall back on.
  • SCOPE FOR FUTURE PLANNING IS FUTILE – Group plans are appropriate for usual ordinary health expenses. You may have long-term plans for your family after you retire. A group policy cannot help you if this happens since it is only valid until the time you are employed with the company. It is better to plan well ahead and buy an individual health insurance policy at least two years before you retire; this will provide you with adequate time to make any changes that are required. 
  • INSUFFICIENT PROTECTION – If you thoroughly compare individual health insurance policies with group plans, it will become clear that the former offers better coverage in many cases. It is especially true in the case of severe illnesses like cancer and renal failure. In addition, group plans usually have an age limit after which treatment for a particular illness becomes free. It means that the benefits available under group policies for older employees will be less than those provided under individual plans.
  • SAFETY OF YOUR DEPENDENTS – In a group insurance policy, you can find a limit on the amount that has to be spent for covered critical illnesses suffered by employees. It means that even if you have paid your premiums faithfully, there is no guarantee that your dependents will not have to bear any expenses out of their pocket. In the event of anything unfortunate happening to you, your family will be left high and dry. Individual health insurance plans are by far the best option when it comes to planning for the future. You can opt for a plan that suits your needs and offers good benefits in all healthcare fields.

The group insurance benefits are many, but they are not enough, especially if you have a family to take care of. If you choose an individual health plan, you can be assured that your dependents will have access to proper medical facilities even after your demise. A comprehensive cover at affordable premiums is available in the market, so there’s no need to compromise quality. You can always rely on individual health insurance plans for your future planning, and they give you the best value for your money. In addition, you can find a plan that offers guaranteed renewal and covers all critical illnesses with no upper age limit for employees and their dependents.