How Long does Corporate Health Insurance Remains Active After You Resign?

When an employee resigns from an organisation that was offering corporate health insurance coverage, the policy will be automatically discontinued. The insurance company will be informed by the employer itself about the discontinuation of the policy for that particular employee who has resigned.

However, if the employee decides to receive the insurance coverage even after resigning, they can port the policy to an individual health plan or migrate it to a new insurer. Here’s more about corporate health insurance policies and the steps to follow regarding it while resigning from your job.

What is Corporate Health Insurance?

Corporate health insurance is a group health insurance policy that employers purchase for their employees. Being an insurance policy for a group of employees, it covers the risks of the entire workforce.

Thus, employees receive better coverage at lower premiums. A significant portion of the premium amount is provided by the employer to provide attractive benefits for the employees.

What are the Steps to Follow for Corporate Health Insurance While Resigning?

Here are the steps to follow regarding corporate health insurance policies while resigning from your current job:

Step 1: Reviewing the Current Policy

The first step while resigning from a job is to review the terms and conditions of your existing group health insurance policy. Check the date when your group health insurance will end and how you can extend the insurance coverage.

Step 2: Check for Portability

Next, check whether your existing group health insurance policy comes with portability options. This indicates that the insurance provider permits workers to have health insurance coverage under several plans.

Step 3: Look for Temporary Health Coverage

Obtaining temporary health insurance is another important step that employees must take. Let's say a person has already started working for a new company, but there is a lapse between the start of their new employment and the conclusion of their previous one. If so, they ought to think about getting a short-term health insurance policy.

Step 4: Review New Health Insurance Plan

After starting a new job, employees should review their new health insurance plan thoroughly. They should check for the coverage details, waiting periods, network hospitals, etc.

Step 5: Documentation

Lastly, maintain all your health insurance-related documents, such as the policy documents, claim form, etc., and know the claim process in detail.

Thus, an employee usually loses their existing corporate health insurance coverage when they resign from the job. However, if their plan permits, they can port it to an individual plan to receive continued benefits.