The lack of adequate individual health insurance can severely restrict the choices you have available in terms of quality healthcare. Let’s compare the two in terms of flexibility, duration of coverage and additional benefits to find out more.

Flexibility

While the cost of corporate health insurance is borne by your employer, they are limited in terms of illnesses covered and only pay for direct medical expenses. This means that you and your dependents may be exposed to any out of scope medical conditions. Related expenses such as diagnostic tests, consultations and post-operative care are not covered either.

On the other hand, individual health plans can be customised keeping in mind your health history. They offer protection against a variety of major critical illnesses. In addition, you can also opt for add-on covers for hospitalisation expenses and incidentals.

Portability

Corporate health insurance plans are negotiated by employers on a preferential basis. Since such plans are built into their employment contracts, employees do not have the freedom to switch to another provider. All decisions regarding the administration of corporate insurance schemes are the sole prerogative of the employer.

Individual health insurance plans can be ported from one insurer to another. If your health insurance needs change in the course of a year, you can compare alternatives from other insurers. Insurance Regulatory and Development Authority of India (IRDAI) regulations require policyholders to submit the prescribed portability form to a new insurer at least 45 days before their current health plan expires.

No claim bonus (NCB)

In corporate health plans, no additional benefits accrue to individual employees. A healthy individual who does not make a claim derives the same coverage as another person who does.
In contrast, individual health plans reward healthy individuals with a bonus amount that is added to the sum assured for each year that no claim is made. Alternatively, insurers also offer a discount on premium upon renewal of the policy the following year.

Duration of coverage

Company funded health insurance plans are subject to continued employment. In the event of termination or voluntary resignation, coverage is immediately terminated. As employees age, the lack of life long coverage is a major disadvantage of corporate health insurance plans.

Individual health insurance plans can be renewed annually. Timely premium payments assure policy holders lifelong coverage. In the event a policy lapses, it can be revived within a reasonable amount of time, as per the terms and conditions of the insurer.

All these make it imperative to avail an individual health insurance plan even if your employer covers you.
Aditya Birla Capital offers a range of plans that can help you fortify your finances against a medical contingency.

Learn more about different Health Insurance Plans here.

DISCLAIMER

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.



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