Corporate health insurance is not enough!

Most employees feel secure with the health insurance provided by their employer, believing it’s enough. But is it really? 

Here’s the reality: corporate health insurance has limitations, and with healthcare costs rising fast, relying solely on your employer’s plan could leave you exposed.

Let’s break down why depending only on your company-provided policy may not be the best decision.

1. Insufficient Coverage Amount

Most corporate health plans offer coverage between ₹3–5 lakh. With medical inflation rising @10–14% annually, this amount may fall short in covering even a single hospitalisation.

For example: A surgery costing ₹5 lakh today might cost ₹10-12 lakh in the next 5-6 years.

Let’s take a look at the costs of common treatments in India.

If your corporate policy covers only ₹5 lakh, you may have to arrange an additional ₹10-20 lakh during a medical emergency. 

2. Customisation limits

Corporate health insurance is picked by your employer, so you can’t customise it. It may lack key add-ons like maternity or critical illness cover. Additionally, co-pay clauses, room rent caps, and treatment limits can leave you paying a big chunk during hospitalisation.

Example:

Rohan underwent angioplasty. His bill was ₹6 lakh, he paid nearly ₹3 lakh from his pocket despite being insured. Here’s why

• Total Coverage: ₹5,00,000 (with conditions)
• Room Rent Limit: ₹3,000/day (Actual: ₹4,000/day)
• Treatment Cap/ Sub-limit: ₹3,00,000

3. Dependency on Employment

Corporate health insurance is active only while you are employed. If you switch jobs or take a break:

• There may be a waiting period of 30–90 days (probation period) before your new employer’s plan kicks in, leaving you & your family uninsured during the transition, and this new plan may come with different terms and conditions. 

For Example: Rohan, a 38-year-old IT professional, switched from Wipro to PhonePe after 10 years of service. He had face issues like:

• At Wipro, his family was covered under the group policy, but PhonePe’s plan covered only employees, so he had to purchase separate policies for his wife & child.
• The new plan had a 3-year waiting period for pre-existing conditions. During this time, Rohan underwent diabetic eye surgery & had to pay the entire ₹2.2 lakh bill out-of-pocket.

4. No Cover After Retirement

After retirement, your company health insurance ends, and getting a new policy becomes harder and more expensive. 

Here are the benefits of buying insurance at an early age:

• Lower Premiums: Starting young means you lock in lower premiums. Someone in their 20s may pay 25–30% less when they reach the age of 50 than someone who starts at 50.
  
  
• Better Eligibility: You're more likely to get comprehensive coverage without exclusions, as health risks are lower at a younger age.
  
  
• Waiting Periods: Most policies have a 3–4 year waiting period for pre-existing conditions. Starting early ensures these are completed before major health issues arise.
  
  
• Cumulative Bonuses: With claim-free years, you earn no-claim bonuses, increasing your sum insured over time, at no extra cost.
  
  
• Long-Term Protection: By the time you reach middle age or retirement, you already have a well-established health plan, with full benefits and fewer restrictions.

Conclusion

Relying only on your employer’s health insurance might feel convenient until life throws an unexpected medical emergency your way. 

That’s why it’s not just wise, but essential, to have your own personal health insurance plan, one that stays with you, no matter where you work or what stage of life you're in.

Your health and peace of mind deserve more than just a job-dependent cover.

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