Corporate health cover or otherwise known as group medical insurance is a policy offered by the companies for employee’s well-being. This insurance policy acts as a cushion and covers the entire medical as well as operational costs incurred by the employees. Further, many-a-time, corporate health insurance plans might even extend their protection towards the other members of an employee’s family. The various reasons why a corporate insurance policy is offered by the companies are because:
- The individual medical insurance policies are quite expensive; thus, a lot of employees are unable to purchase a policy on their own. Therefore, they often live their life without any coverage; hence, the employers provide their employee’s with a health insurance policy. This not only boosts the performance of the employees but also increases their affection towards the organization.
- A corporate medical insurance policy is way cheaper than the individual one. The reason being; this policy is purchased in bulk and thus, most of the times; they don’t require you to undergo check-ups. Now, take this example- an employee with medical conditions will have to shell out the same amount of premium as the one without a medical issue.
However, ask the insurance pundits that you are completely insured with a group insurance policy and they would be sure to tell you otherwise. After all, there are a lot more reasons why you should be opting for an individual health insurance policy over your corporate cover, and they are here as follows:
- Firstly, the corporate health insurance plans only extend towards you and your family, as long as your work in the company. After which, the employer stops paying your premium amount you are left without an insurance policy. Further, when you opt to switch jobs, you are provided with an option to change your policy from group insurance to an individual health cover; however, the premium for that would be much higher than purchasing a new cover.
- The insurance companies often provide the customers with rewards in the form of NCBs (no-claim bonus) for not making a claim during the policy tenure. However, NCBs are only offered for the people under individual insurance plans; for the ones under the corporate insurance covers- this feature is inapplicable.
- The best thing about buying an individual health insurance plan is the fact that you get the option to customize the policy in accordance to your needs; however, the same is not the case with your corporate insurance plans. A group insurance plan is purchased in bulk by the organizations for the employees; thus, in order to obtain higher benefits, employees have to shell out more amount of premium.
- Further, many-a-time, the group insurance policies offered by the companies do not provide protection to your children, parents, and spouse. In that scenario, you would have to purchase an individual health policy for your parents; whose premium amount would be much higher than a family floater plan.
Hope this article helps you understand the reasons why you should look beyond your corporate medical insurance in India. Good luck and all the best!