One of the more significant benefits of working for a good firm is that they may give you (and, in certain circumstances, two members of your family) health insurance. This benefit is in addition to your salary.
But is it sufficient?
By offering their employees insurance policies with the very bare minimum of coverage, businesses and employers also aim to reduce costs. While there are many types of health insurance, even basic coverage can be utilised as an “insurance benefit” to entice or keep workers.
Here are some details about your employer’s insurance plan that you might have missed, along with some reasons you might require supplemental protection.
- Co-pay provisions: These state that the insured party is responsible for the balance of any costs not covered in full by the insurer. Since the financial burden is only slightly lessened rather than entirely alleviated, this essentially reduces the overall value of even having insurance coverage. Most conventional insurance policies provide a higher overall amount of financial assistance and do not include co-pay conditions.
- Limiting conditions for room rentals: This condition essentially states that the hospital may only pay for your room rent per day up to a particular amount, which could be half the entire rent. Because nurse and doctor charges make up most of the cost, this provision also states that the coverage would only go as far as the room rent.
- Employment status: Your protection under your employer’s insurance policy is contingent upon your continued employment with the business. Your insurance coverage ends the moment your employment is terminated for whatever reason.
- Total number of people covered: Your dependents may or may not be covered by the health insurance plan you receive from your job. In India, a health insurance policy is crucial to include your dependent parents or children in the policy’s coverage. The entire purpose of having insurance is to ensure that you may be required to pay little or nothing when you (or your dependents) end up in the hospital. Insurance plans for the employer and the company may solely cover the employee.
- After-retirement insurance: You may only be protected for as long as you work for the company. You won’t have the advantage of insurance coverage after retirement, which is when you’ll need it the most. It is challenging to obtain a policy after the age of 50. Some might not cover pre-existing medical conditions.
There are more reasons, including:
- Changes to the employer policy’s terms and conditions: Employers and insurers collaborate to reduce costs and liability. They have the right to modify the terms of your insurance at any time, removing some coverage options or adding exclusions for pre-existing conditions and/or specific illnesses. Additionally, they have the option of dropping your dependents from coverage, altering the terms of the agreement to their liking, or even raising the premiums (which is unlikely).
- Total effective cover total: Employers don’t provide their employees with a lot of financial coverage through group policies. This amount may hardly be 20% to 30% of the whole costs for acute illnesses and prolonged hospital stays.
Having insurance coverage through your company is undoubtedly advantageous. Employer insurance is a perk and a strategy used to keep workers and improve the working relationship between employers and employees. You must read the policy paperwork carefully to determine the extent and quality of the group health cover offered by your employer.
Always treat the insurance provided by your employer as a backup plan in case your primary policy (which you obtain independently of your employer and without any link to it) expires.
* Standard T&C Apply
** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.
# Visit the official website of IRDAI for further details.
## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.