Those who are covered under a group medical insurance plan from their company often wonder whether they would need an individual health insurance policy. If you and your family are already covered under a group health insurance policy, why would you want to spend more money and buy separate coverage? However, there are many benefits to having your own private health insurance policy. Before exploring those benefits, let us first understand what a typical group medical insurance plan from an employer normally gives:
A group medical plan is provided to all the group members of the organization and their dependent family members such as their spouses, parents, and children. In most cases, such plans are provided by banks, organizations, business groups, and so on.
Since you are an employee of the organization that is providing the group medical plan, you do not have to pay any premium for your insurance plan. Your premiums are taken care of by your company. This is definitely a perk of getting health insurance covered by your company.
A waiting period is the time span during which you are not permitted to make claims on your health insurance policy. You must wait for this period to end before you can use your policy, and the duration of this period depends from insurer to insurer. One of the biggest advantages is that there is usually no waiting period in case of group medical plans.
Now, here’s why you should buy a health insurance policy even if you are currently covered under a group medical plan:
The premiums for group medical plans are lower since they are offered as part of a group package. This is because the coverage provided as part of the group medical plans are often not adequate. Healthcare expenses can amount to quite a sum, and this is why going for an individual health insurance policy offering better coverage would be better suited to you.
You can never be sure to continue in the same company forever. Once you leave your current company and join another one, your company-provided health insurance coverage ends immediately. Even if you do not shift and retire at the age of 60 years, your group health insurance ends the day you stop working for the company. Going for a new health insurance at that age might cost you a fortune. This is why it is considered best to secure yourself with a health insurance policy even if you are currently under a group medical plan.
One more risk that a group medical plan holds is that your current company might reduce the insurance coverage for their employees if they face financial hardships. They might even restrict the policy to their employees or introduce the co-payment which mandates employee to share the cost of the treatment with insurance company, which means that your family would not be covered anymore. You can rest assured that something like this would never happen with an individual health insurance policy.
We hope that this article has helped you. Good luck and take care!
Keep checking our blog for more articles where we bust myths related to insurance, help you with tips to get better protection and assist you in making the right choice when it comes to purchasing insurance.
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