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? 

The truth is, corporate health insurance has limitations, and with healthcare costs rising fast, relying solely on your employer’s plan could leave you exposed.

Let us tell you why depending only on your company-provided policy could leave you exposed.

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Insufficient coverage amount

Most corporate health plans offer a sum insured between ₹2–5 lakh.  

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But here’s what the 5 most common surgeries cost today

On top of this, medical inflation in India is ~14% annually.

This means a ₹5 lakh cover today may fall too short within just 2–3 years, especially if multiple family members are covered under the same policy.

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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.

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Let's take an example!

Rahul had to undergo a bypass surgery and was hospitalised for 3 days.

Company policy details

• Policy Cover: ₹5 Lakhs
• Room rent limit: ₹5,000/day

But Rahul's room rent was ₹10,000. Here's how it affected his claim.

Rahul had to pay 1,65,000 (50% of the bill) out of his pocket even when he had sufficient coverage, just because his room rent exceeded the limit.

That's because if you exceed the room rent limit, insurers apply proportionate deductions to the entire claim amount!

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Dependency on employment

Corporate health insurance is tied to your job. The moment you resign, retire, or are laid off the cover ends.

There’s no grace period. No transition support.

If you're switching jobs, there’s often a waiting period of 30–90 days (the probation period) before your new employer’s policy kicks in. During this time, you and your family remain uninsured.

Worst? The sum insured, coverage limits, or room rent caps may be different and pre-existing diseases may have fresh waiting periods

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Let's take another example!

Rohan, switched jobs after 5 years.

His new employer’s health insurance had a 3-year waiting period for pre-existing conditions.

Within a year, Rohan needed Gastric bypass surgery for 4.5 Lakhs because of diabetes (a pre-existing disease)

Since it wasn’t covered during the waiting period, he had to pay the entire ₹4.5 lakh bill out of pocket, despite being insured at both jobs!

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No cover after retirement

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

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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.

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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