What Sum Insured Gap Does Corporate Health Insurance Typically Leave Uncovered?

Corporate health insurance tends to have a sum insured gap where the available coverage falls short of the cost of medical treatment. Most of the employer-provided plans have a small amount insured and may not be adequate in case of severe illnesses, major surgeries or accidents that incur high hospitalisation costs.

In a corporate family floater plan, the total amount insured is distributed among all the employees. When a member spends a substantial amount or exhausts the cover through a significant treatment, there will be minimal or no cover left for other members within the same policy year.

These situations highlight how your corporate health insurance can leave a portion of medical expenses uncovered. Keep reading to learn more.

How Individual Health Insurance Plans Help Cover Gaps in Corporate Health Insurance?

An individual health insurance policy plays a crucial role in overcoming the shortcomings of corporate cover and enhancing your overall financial security against medical costs:

1. Better Protection through Higher Coverage

Individual plans enable you to choose a much higher sum insured, depending on your needs. This guarantees that in instances when you are covered by expensive treatments or multiple hospitalisations, you still have sufficient financial coverage over what a corporate policy offers.

2. Flexibility to Customise Your Policy

Contrary to the traditional corporate plans, individual health insurance allows customising coverage by adding options like critical illness cover, maternity benefits or outpatient care. This will enable you to create a policy that is consistent with your health risks and lifestyle.

3. Uninterrupted Coverage Across Life Stages

An individual policy remains active as long as you continue paying the premium, regardless of job changes, career breaks, or retirement. This will provide coverage on a continuous basis and eliminate the uncertainty when it comes to employer-dependent coverage.

4. Improved Family Covers

You can tailor your health insurance cover prudently through an individual policy. For instance, it is possible to choose different plans to cover elderly parents so that they do not need to pay high premiums on a family policy and yet they may get suitable cover.

5. Long-term Benefits and Rewards

There are incentives offered by many insurers, such as a no-claim bonus, where the sum insured increases over time without a significant rise in the premium. This slowly increases your coverage and assists in reducing the cost gaps in future.

6. Tax Savings Advantage

Depending on the applicable laws, you may also receive tax deductions on premiums paid on individual health insurance as an added financial advantage, but with comprehensive coverage.