Is your employer's health insurance enough to meet your health care costs
Updated: Sep 6, 2020
Many of us avoid buying a health insurance cover thinking that our employer's group health insurance is enough to cover our health care needs.But we may be wrong, let us see why.
1.Employer health Insurance coverage is insufficient.
Most of the employers provide insurance cover in the range of 2-4 lacs. With spiralling health care cost the insurance cover provided employer will not be enough in case of a serious illness.
Rather than paying a hefty hospital bill, health insurance premium will be much cheaper.
2.Health Insurance coverage when switching job
Employer's group health insurance will cease on resignation or termination from the job .You and your family members will be without cover for a certain period of time, till you are covered by new employer’s group insurance policy.
It is a quite a risk in current scenario when frequently switching jobs and termination of employment has become quite a common thing.
3.Buying health insurance policy post retirement may be costly.
Post retirement you can request employer's insurance provider to convert the group insurance cover to an individual policy. Premium on this policy will be set at discretion of insurance provider and it can on a higher side.
4.Risk of health insurance facility being withdrawn or modified.
Providing health insurance is not mandatory for employers, so in future they may stop providing the facility or curtail the benefits.
Health insurance premiums increase with age and if you are suffering from any pre-existing disease you may be charged a higher premium. Better you buy a separate health insurance policy at an early stage of life, when premiums are cheaper and at this stage chances of you suffering from any pre-existing disease are low. In case of any claim first exhaust your employer’s health insurance limit, then you can use your own personal health insurance. In case of no claim on your personal health insurance in a particular year, you will get no claim benefit from your insurance provider.
You can also buy a top up health insurance policy to supplement your existing health insurance.
We suggest you buy a health insurance policy for your family and critical illness policy for yourself and spouse.