7 Reasons why employer health insurance might not be enough

You already have one respected job or recently landed one that pays you well and comes with several perks. Once you accept the offer, you get information from the company HR that the company has tied up with a leading insurance provider for health insurance cover for all employees and it is already covered in your CTC.

You think that you have free health insurance - and you don't have to spend time, effort, or put yourself through the difficult task of finding and buying the best personal health insurance plan because you already have one - right?

There are many medical emergencies where your company's health insurance can fall short. And, when you or your family needs actual financial cover in hospitalization, it might be too late to go back and buy a personal health insurance plan.

These medical emergencies are hard to imagine but occur more often than you'd think. - Below are reasons why you should not entirely rely on your company's health insurance plan for your healthcare needs.

7 Reasons why employer health insurance might not be enough

1. It will discontinue as soon as you move or leave this company: 

Your company health insurance policy is a group insurance plan tied to the company you are currently working with. This means that once you leave this job, you will be left without a cover or change the insurer according to the company. If you choose to pursue higher studies or start working full time on your side hustle, importantly if you retire you might end up without health insurance. This is seriously risky - especially considering that you will be older by the time you decide to take such a decision.

2. Policy premiums may get expensive: 

As you grow older the risk of getting a lifestyle disease like diabetes or hypertension increases. Once you suffer from a chronic lifestyle disease, the insurer may increase premiums by 30-40% to cover the additional risk. 

3. Policy may get rejected: 

There's always a risk that your proposal might be declined altogether, and you might not get a policy because of your preexisting diseases which increases the risk for the insurer to cover.

Imagine when you are moving closer to your retirement, and realize that you will not get a health insurance plan for an affordable cost anymore. At that time, you've to make the choice - of either going without a health cover or paying an expensive premium for a mediocre cover!

The best time to extract the best health insurance cover from an insurer is when you are young and healthy when you don't need it at all! 

4. A company medical insurance policy is a group insurance policy: 

Company policy is designed considering the budget limitations of your company. This is not a personalized insurance plan as per the employee's need but a customized best possible deal for the employee group at the least possible cost. 

5. Employer can end the cover anytime

It is important to note here that the Health insurance policy provided by an employer is just another perk of your job and not a mandatory feature. The management can choose to remove certain benefits, make you pay the premium, or discontinue the policy altogether when faced with a financial situation.

6. It cannot be converted to Individual Policy: 

If an employee quits or the employer discontinues the policy, it cannot be converted into an individual policy. The policy is an agreement between the company and the insurer, and accepting the proposal of converting it into an individual policy solely depends on the Insurance company.

7. Limited coverage: 

Most insurance policies offered by employers are sufficient only for small illnesses. Company insurance also has a cap for different types of illnesses, and the expenses more than that limit need to be paid by the employee. Non-medical expenses are not covered in the company insurance policy which generally is almost 20-25% of the total bill. Many times not all dependents in the family get covered in company policy.

I hope that you understood the need for you to invest in a personal health insurance policy, and not entirely rely on the plan provided by your company. A family floater health insurance cover, as well as features and benefits that are tailored to your medical history and health requirements for all your family members, especially your parents, need to be bought.