For most of us, the only health insurance that we have is the one that’s provided to us through our job. We call this employment-linked health insurance.
Employment-linked health insurance has a few benefits:
- It’s automatically granted to us as soon as we start a job.
- It usually covers our immediate family including in-laws (very rarely this is provided at a small additional cost).
- It’s automatically renewed each year.
- The premiums are borne on company expense.
- Usually, there are no restrictions on age (especially for parents and in-laws) and existing conditions.
On the other side, it also has a few disadvantages:
- It stops the second you leave your job.
- The coverage or sum insured is a small amount.
- While it’s possible to port out of this group-insurance policy and over to an individual policy, it’s cumbersome and may not be the ideal thing to do.
However, the important factor to remember here is that when you plan to shift policies from a group cover to an individual policy, you can only do so with the same insurer. You can switch insurers only when you have completed at least one year with your individual policy with the present insurer.https://www.policybazaar.com/health-insurance/general-info/articles/how-to-shift-from-group-medical-cover-to-personal-policy/
It’s best if you always have separate health insurance coverage outside of your employment. There are several benefits to doing so:
- You choose the insurer.
- You choose the health insurance policy that’s right for you and your family.
- You choose the health insurance coverage/amount that’s right for you and your family.
- You have health insurance coverage for you and your family even when you’re not employed (due to an unfortunate/unforeseen life situation) or when you’re amidst a job transition.
- You have greater freedom and flexibility should you choose to port your policy to another insurer.
That said, we do realize that it’s often difficult or very expensive to get outside health insurance for our parents especially when there are pre-existing conditions. We’ve been through these experiences before and we’ve concluded that it’s best to have the best of both worlds whenever you can: employer-provided health insurance and an individual health insurance policy.
With sthana.ai, as you start documenting your personal finance assets our intelligent algorithms will guide you towards identifying such gaps in your personal finance portfolio and will nudge you towards taking the right corrective actions for your family’s financial security.
Stay with us on this journey. 🙂