Should I Take An Individual Health Insurance If I Already Have A Group Health Plan?

In the Group Health Plan option, individuals are benefited since their companies pay the premiums. It also pays the medical expenses of an individual, including any family member, till the time you are employed with the organization. There are many advantages for people who are covered by a group health plan, although sometimes one may need to take an Individual Health Insurance Plan as well.

Here are some reasons that are worth considering.

• Individual Health Cover is not reliable in case of a Group Health Plan: People often think that the Group Health plan has been issued by every organisation with whom they are working. According to a survey report of 2015 there are only 44 % of the Indian companies offering a group health plan for the benefit of the employees working within the organisation. So it can be calculated that 56 % of the Indian Companies do not offer any Group Health plans. It is necessary to take Individual Health coverage, especially for those working at companies that do not offer these plans. An individual health insurance plan keeps your coverage consistent throughout your lifetime, and it stays immune to job changes and other factors. Group health coverage may be impacted if you change your organization and the new one may not always have these kinds of plans.
• The coverage amount can be reduced: People often think that the company they are working for offers a Group Health Plan which will include all the amounts when there is an emergency situation or any huge bill; this may be completely wrong. In case the company is also facing financial difficulty, it may reduce the amount of insurance coverage. Sometimes these companies exclude the individual members of a family, like spouses and children, from the Group Health Policy. In this case, the Group Health Coverage may shrink and may cause a financial crisis for the person who is working at the organization. In case of financial difficulties of a company, they may also ask the employee to cooperate with the amount of money which is needed for any member of the family. Also, there may be caps or limits on the coverage limit across categories.
• Coverage deficiencies: In the case of Group Health Plans, the coverage package is up to Rs. 2 to 3 Lakh in most cases. In this case, if any member of the family has a critical health condition and the treatment costs, say Rs. 10 Lakh, then the Group health plan is not of much use. In recent times, rising healthcare cost inflation means that the amount which is covered in the health insurance policy must be more than 6 times the salary earned on a monthly basis.

Hence, group health insurance translates into an under-insured individual in most scenarios. It is necessary to take an individual health plan in this case, since you will get adequate coverage which is enough to cover inflation.

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• Coverage will not be provided after retirement: A Group Health plan offered by a company will not continue after your retirement. This plan will only be applicable for the time you are employed at the organization. Individual health insurance becomes more necessary post retirement. However, at this age, it is either next to impossible or immensely costly to get health insurance. Hence, purchasing an Individual Health Plan timely is always crucial in this regard.

These are some reasons which will convince you to go for an individual health plan for a comparatively reasonable premium. Choose sufficient and sizable coverage for yourself and your family members as much as possible. Let your group health insurance plan be a supplementary addition to your insurance portfolio since you cannot depend on it fully to meet all your needs and exigencies.