It is seen these days that many employers provide health cover (employer health insurance) to its employees as an added benefit to the terms of employment. This makes sure that every employee is covered for some basic health cover. This is just an added benefit that is provided by employers that is offered mainly to claim tax deductions for the premium paid by the employer. So, the type of cover chose is very basic and at times many restrictions and exclusions are there.
If you have employer cover then three aspects need to be considered in such a case—
|Primary concerns||Secondary Concerns|
|Terms of Loading & Co-pay||The cover is sufficient?|
|All family members are covered||Is the insurer good enough?|
|Sum assured floats evenly for all members?||What happens while switching jobs?|
|Illnesses covered under such policy|
Health insurance is provided as a perk to the employees. So it is important to understand the policy a bit more in detail and to check for coverage conditions. The best way is to ask the HR Department for policy details. Get into details of what is covered and what is not covered? Many times Employees just think that they have Health Insurance and are just relaxed only to find later that it does not cover X and covers Y only up to a certain limit.
Also, these days the cost of providing health insurance cover to the employee is huge. So, many employers have limited cover wherein employee’s parents are not covered or the health insurance cover is available up to maximum of 1 child only. Employers have started limiting the health cover for the type of health expenses that are covered. All these details are to be looked into much depth and these limitations necessitate having personal health cover and seeing employer health insurance just as an added benefit. In the event where the individual is in between switching jobs then the employer cover ends from the first employer and the individual is left uninsured and is exposed to the risk of health expenses until the employer cover starts from the new employer.
Let’s see an example
- Kim’s current employer provides group health insurance for $2000 that covers him, his wife and 2 kids. He does not have any personal health insurance.
- Kim is not paying any premium for this health insurance. After 4 years, Kim leaves his current job and joins another employer. The new employer provides health insurance similar to the previous employer but Kim joins this new company after 2 months.
- So, during this transition period, Kim is left uninsured for health insurance. Any expense made for hospitalization during this period is to be borne by Kim.
- Also, he may have to undergo medical tests for the new health insurance cover and any preexisting diseases will be covered after completing some specified waiting period (generally 4 years).
Getting a personal health insurance cover helps to maintain a history with the insurer. So change in medical condition after buying the health insurance is covered under the policy. So when new medical insurance is bought after relying on employer cover for the term of employment, all the all the medical changes are considered as Prevailing for the purpose of setting up new health insurance. This may restrict an individual from getting any health insurance and it may result in increased premiums.
So considering all the above facts, it can be concluded that detaching health insurance cover from employer (Employer’s Health Insurance) and buying personal health insurance is more sensible and that way individual can be covered for the purpose of health insurance at all times.
Health Insurance is a must because
- Health is Wealth! So insuring your health is equivalent to insuring your wealth
- Any and every medical emergency doesn’t strike with prior warning
- Costs of Medical treatments are rising in double inflation figures
- It acts as a safeguard against your assets and investment getting used up to pay for medical expenses
- So that while getting treated for any illness you are not worried about monetary issues and can concentrate fully on recovery
- It is proved long-term benefits as you might be fit and healthy now but you don’t know what will happen after a few years
- Health only deteriorates with age
- Lastly, because you have read and understood all the above points!