Corporate Health Insurance vs Personal Health Insurance Plans

Do you need individual health insurance when your employer already covers your medical costs with a corporate health insurance plan? This is a common doubt among working professionals. Of course, you don’t want to spend money unnecessarily, but you must understand how these options stack up. Your healthcare needs are unique and personalised. Few Indian employers offer comprehensive employer-sponsored coverage, including insurance, preventive, and primary healthcare. Thus, it becomes essential to understand the options and get what suits you the most.

Let’s explore corporate and personal health insurance plans to find the perfect health coverage fit.

What Is Corporate Health Insurance?

Corporate health insurance is a group plan your employer offers to bring all employees under a single medical coverage shield. Thanks to group discounts and broader benefits, it is cheaper, and employers mostly pay the premium. However, your employer might ask you to chip in if you wish to extend your coverage.

Some benefits of corporate health insurance: 

• Employer contribution to ease your financial burden
• Broader coverage, including critical illness, hospitalisation, maternity cover, etc. (based on the policy)
• Paperless claims with a wide network of hospitals
• Extended coverage for family (depending on the employer)

While it all sounds good, the employer controls the insurance coverage and benefits. There may be exclusions or limitations that can add to your healthcare expenses later. Such plans are not tailored to the individual needs of each employee because they are part of group insurance. Although some employers offer preventive care programs as office perks, they are not guaranteed.

What Is Personal Health Insurance?

Individual or Personal health insurance can be tailored to your unique needs and budget. You are in full control and can choose to cover medical risk factors exclusively for you. However, you are responsible for paying the insurance premiums, but you can make informed choices. Some of the benefits of personal health insurance plans are:

• Customise your coverage to meet your requirements
• Optimise premium for your budget
• Include or exclude family members with flexibility 
• Continued coverage regardless of your employment status

Corporate Health Insurance Plans vs Personal Plans

Sure, your employer must have covered you with a group insurance plan. But will you still be willing to risk your finances when you are sick due to any limitations in those plans? Or will you take it on your shoulders to cover your health with certainty? 

Rahul imagined quitting the corporate grind and exploring the freedom of entrepreneurship. Unfortunately, he had to be hospitalised due to cardiac issues. His corporate health plan no longer covered him. He managed to pay the bills out of his pocket but realised the value of health insurance. He purchased personal health insurance for himself after the cardiac issues, but the plan had a waiting period of 2 years for pre-existing conditions. As a result, he would be without a shield for 2 years. This burden could have been easily avoided if he had purchased individual health insurance at the beginning rather than depending solely on the corporate plan provided by his employer.

Let’s compare both to help unlock the path to optimal health protection.

Key Takeaways

Your health insurance needs constantly evolve as you age and your family expands. Don’t hesitate to adjust your coverage as life unfolds. With the proper knowledge, you can navigate the healthcare maze easily. 

Wondering whether employee-sponsored health coverage is sufficient? Start mapping your needs. When you compare network and costs, the corporate plan is a comfortable cushion because you may not need to pay any premium. However, it’s essential to be careful of the coverage amount because the provided amount might not be sufficient. In that case, you can always customise health coverage for yourself and your family with independent health insurance plans, irrespective of health coverage provided by your employer. Additionally, with platforms such as PhonePe, managing your health insurance becomes even simpler.