Health Insurance Plans

pays for your hospital bills for diagnostics, surgery etc.

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Does it make sense to buy a health insurance policy if you are covered under your company mediclaim ?

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group health insuranceHealth insurance is avoided by many people for various reasons. Some may claim the delay of purchasing one to their young age, fit lifestyle, employer coverage etc. Considering that the health care costs have been rising exponentially, it makes all the more sense to purchase a health insurance cover.

An employer provided coverage is a plan provided by the employer up to a certain amount to cover the cost of medical emergencies. Whereas an individual health cover is purchased by an individual himself to cover the medical exigencies.

One could argue to the fact that since employer coverage and individual health insurance serves the same need, there are quite a few differences to be aware of. Even being covered for health expenses through your employer, due to the below mentioned reasons, you should purchase and individual cover to help in times of medical emergencies.

  1. The employer coverage will be in force only till the time you are employed. There could be changes in the HR policy of the organizations to gradually reduce or stop the cover due to increase in the premiums charged by the insurer or any other reason as deemed fit by the employer.

  2. In times of job loss you could be without any coverage. Any medical or hospitalization expenses would have to be borne by you from your savings or any accumulated corpus.

  3. The cost of premium for your employer provided coverage is also deducted from your pay slip and such is a part of your Cost To Company (CTC) and not a standalone cost borne by the employer.

  4. There is no flexibility of customization. The plan of coverage provided to you is on terms agreed by the insurer with your employer and you are not allowed to choose one as per your requirements. Some companies may offer employees to purchase additional riders, but the addition in costs too has to be paid by the employee.Corporate mediclaim

  5. No claim bonus is a reward awarded to the insured for the insurer in the form of either increase in the sum assured or reduction in the premium cost in the event of no claim towards the health insurance policy. This feature helps in enhancing your health insurance cover at no additional premium cost. No such benefit is available under the employer provided scheme.

  6. According to the tax laws there are certain deductions an individual can claim for paying health insurance premiums. The total deduction under section 80D that can be claimed is Rs. 60,000. Under the employer provided plan these benefits accrue to the employer and the employee can claim only the part of the premium paid by him.

  7. Post retirement you are left without any coverage. The cost of buying an individual health cover at that age would be exceptionally high.c

The decision to buy health insurance coverage should not be delayed as far as possible. The main motive is to be adequately covered to manage the rising cost and medical emergencies.