Are Group Health Insurance Plans Enough, or Should I Buy Personal Cover?

59% Indians rely on group health insurance, delaying personal cover premiums as it not only covers you but also covers medical treatment and hospitalisation for you and your family members.

But the employer buys group plans to cover a group of employees under 1 plan, so there is a higher chance of discontinuation. You should buy a personal cover. Individual plans provide continuous protection and higher coverage for critical illnesses.

Why Should You Buy a Personal Cover?

Relying on group health insurance is not a smart idea. Here is why

1. Coverage Benefit is often Not Enough

Only 5% of Indian organisations provide comprehensive insurance coverage, including health insurance, disability, and accident coverage, with telehealth consultation services. This is the key reason why having a personal cover makes sense. It provides continuous protection and flexibility, unlike group policies tied to your employer.

2. Coverage Amount

With growing medical inflation, your health insurance coverage should be around 6 times your monthly salary. Group health insurance offers a fixed coverage amount decided by employers, ₹3-5 lakh. This might not be enough for major surgeries or treatments in private hospitals. With individual policies, you can select higher coverage based on your needs.

3. Higher Chances of Discontinuity

If you change jobs or leave the company, your group insurance policy usually ends. Your company might also reduce coverage due to financial hardship or ask you to contribute to premiums. If you continue these plans throughout your working life, they usually end when you retire or leave the company.

What are the Benefits of Buying Personal Cover with Group Health Insurance?

1. No Premium Pay for Employees

For a group health insurance plan, as an employee, you do not have to pay insurance premiums. The company pays the premium, so you can enjoy health insurance coverage benefits for free.

2. No Pre-Medical Check-up

No medical test is required before enrolling in a group health insurance plan. When it comes to pre-existing conditions like high blood pressure or hypertension, group health insurance plans score higher than personal cover plans. Group health insurance covers pre-existing conditions without any waiting period or pre-medical check-up.

3. Extensive Coverage

The combination of group health insurance and an individual plan ensures continuous and extensive medical protection, regardless of job changes.

4. Better Coverage Benefits

Individual plans offer critical illness riders, no-claim bonuses, and lifetime renewability. Adding a personal cover to group plans goes beyond a single plan limit with higher benefits.

5. High Sum Insured

Considering individual and group health insurance plans, the insured amount may be enough to cover all medical expenses and treatment needs.

Final Words

Group health insurance plans and personal insurance come with benefits and constraints, too. The best approach is to buy personal health insurance along with the group plan. Treat your corporate plan as a bonus and supplement it with a personal cover policy for enhanced protection.