Categorized | Health Insurance

why buy private health insurance?

The companies provide Health Insurance to their employees. Although it is comparatively new but a healthy trend taking shape; Is it good enough and till when will we get the benefit, are questions we must ask. We here try to find answer to these and more.

Till only a decade back, group health insurance was associated with government organizations, public sector companies and very large corporate organizations. Today every other organization is covering employee health; some of them cover even the families of the employees. A healthy trend as it is, it ensures tax benefits to the employer, and a sense of satisfaction to the employee.

Group insurance is variable as per the employer. Some may be comprehensive covers; others may be barebones with only the basic health cover and they can be anything between these two extremes. So asking for what it covers is valid. Besides, having private health insurance has some definite advantages over the employer provided health cover.

Who does health insurance cover

The first most important thing to know is who all are or can be covered under the employer health policy. It can be for the employee only or it can be self spouse and kids. Some have the option to cover parents under the same Policy as well.
   
Private health insurance allows you to cover every single person of your family individually or in a family floater policy depending upon your requirement.

How much cover are you entitled for

The health cover slabs vary with seniority and designation in the organization still it is important to know how much cover you have. If you are not comfortable with the employee health cover, you may want to take a personal health insurance.

With a private health insurance you have the flexibility to choose the amount of cover you want. The only thing you need to consider is the Premium that you can afford or wish to pay.

Which medical conditions does the insurance cover

Some employers offer a rather Comprehensive insurance that covers anything and everything that can be included in a health insurance. They might even cover maternity and Pre-existing diseases which are usually excluded individual health plans. Others may be barebones that cover only the basic cost of Hospitalization or may not cover pre existing diseases etc.

A very basic health insurance provided by many employers may not be sufficient. Private health insurance is standard with their standard inclusions and Exclusions and different premium slabs for different age groups covers. You can choose the plan suitable to you.

What happens when you retire

Most employers will terminate health insurance as soon as you retire unless they have a specific policy for their retired employees. At that age you would have crossed the entry age for most health insurance companies. Those allowing might not cover any pre-existing disease and the premium would be very high.

With a private health insurance, you cross all the waiting periods by the end of fourth year. You are fully covered for all medical situations that can be covered under health insurance. Taking a private health insurance along with the employer provided will ensure ample cover after you retire.

Health cover during breaks in employment

This covers two scenarios 1) Break in employment due to termination or job switch 2) Change of employer. If there is a break in employment, you are not covered during that time. Your new employer may not be providing health insurance. Your employer may even decide to change the health cover policy provided to the employees.

A parallel private health insurance to the one provided by the employer fills the gap. You are sufficiently covered even during the breaks in employment. 

Most insurance experts believe that one should have a private medical insurance despite having a group Mediclaim offered by employers. This is to make sure that one is adequately covered in the time of need and during uncertain employment times.