Do You Need Health Insurance if Your Company is Providing One?

Several companies offer group health plans for their employees as an additional benefit. Some employers may also extend the coverage to your family members. However, group coverage may not always be adequate.

Insurers are very cautious when they need to pay a claim under an insurance policy. Often, there may be certain terms in the fine print that you may have missed reading.  Claim settlement under a group insurance plan is slightly more difficult as compared to an individual health insurance policy. Generally, the coverage under a group health insurance plan is the bare minimum as employers and insurers look to reduce their costs. Some companies may provide minimal coverage to entice potential employees or retain existing personnel.

Here are five reasons why you may need an additional health plan even if your company offers one:

  1. Co-payment

Under the co-payment clause in a medical insurance policy, you agree to pay some portion of the costs through your personal sources. Once you pay your share, the insurer pays the remaining cost. Therefore, you will still need some money to pay in case of being diagnosed with a medical condition. Generally, individual health plans do not have a co-payment clause.

  1. Room rent limitations

This clause limits the per day room tariff that will be covered by the insurance company under the group health cover. Additionally, the policy covers only the room charges and other expenses, such as doctors’ fees and nurse charges are often excluded from the group plan.

  1. Employment status

The group health plan offers coverage only as long as you are employed by the company. If you change or lose your job, the coverage is immediately unavailable. During the period when you lose group coverage and are able to find another plan, you bear the risk of no coverage. In the case of hospitalization during this time, you will have to pay all the expenses through your sources. If you have an individual health plan, this risk is eliminated.

  1. Number of individuals covered

When you avail of health insurance, you often cover your spouse, children, and dependent parents. This is to ensure that you are not financially burdened in case your family members fall sick and require hospitalization. A group plan may not provide coverage to your dependents, thereby putting you at a risk.

  1. Coverage after retirement

The group insurance coverage discontinues when you retire. This means you are left without health coverage at a life stage when it may be needed the most. Availing of health coverage at a senior age is a tedious task and requires undergoing multiple medical tests and other formalities. Even if you are able to buy a health plan, it will not cover pre-existing conditions. Research shows that the majority of hospitalization among seniors is due to existing conditions. To prevent such risks, it is recommended you avail of individual coverage when you are young and healthy.

Group policies often do not provide higher financial coverage. In case of a serious ailment or prolonged hospitalization, the cover under the group plan may be minimal. Moreover, the terms and conditions may be modified at any time to make it cost-efficient for employers and insurers.

Being covered under a group plan is advantageous; however, do not solely rely on it. Buy an online health insurance policy today and secure your financial stability.

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