Corporate health insurance provides a safety net for an employee’s medical expenses, as outlined in the policy terms. However, in times of need, it might not be enough. A lack of customization and limited coverage in health insurance can cause a financial drain during medical emergencies. For these reasons, it is essential to be fully aware of what your corporate health insurance covers before using it for any medical treatment. Read this guide to know more.
What is a Corporate Health Insurance Policy?
A corporate health insurance policy, commonly known as a Group Health Insurance Plan, provides comprehensive coverage to a group of employees at an organisation. The employer generally pays the premiums for this coverage, making it part of the employee benefits package.
Many corporate insurance policies provide comprehensive coverage to employee and their dependents, but this coverage might not be sufficient to provide protection from high medical expenses. For instance, a coverage amount of Rs. 4 Lakh might appear a lot, but with increasing medical expenses, this coverage is not sufficient to meet hospitalisation costs in case of critical health issues, like heart surgery.
Additionally, this coverage limit might also not be adequate for individuals in their transition phase of life, such as those who have become unemployed or retired employees who are at risk of facing a medical emergency. So, even if you already have a corporate plan, reviewing options like an ACKO policy can help identify gaps in your overall health coverage.
How Does a Corporate Health Insurance Policy Work?
Employers provide corporate health insurance to cover employees’ medical expenses, typically including basic hospitalization charges in the event of an illness or accident lasting more than 24 hours. It may also be extended to spouses and children, and sometimes even to parents.
However, the amount of the sum insured is fixed and often very limited. To increase it, one has to bear the additional premium. Although helpful, the policy may prove insufficient in meeting all health requirements, making it crucial to assess the adequacy of corporate insurance for comprehensive protection.
Why is Corporate Health Insurance Not Enough?
Let us explore the reasons why a corporate health insurance plan is not enough in today’s time:
-
Limited Coverage
Under the corporate health insurance policy, a company provides standardised coverage to employees and their families. For cost minimisation, companies maintain the insurance coverage amount at a minimum. However, the needs of your family might be different from those of others. Thus, the coverage provided might seem inadequate or insufficient for safeguarding your family.
There are also limitations on room rent, copays, and category eligibility under the employer’s policies. Hence, the coverage amount may not be sufficient to cover the treatment costs, resulting in significant out-of-pocket expenses.
The insured sum amount is determined based on several factors, including the family structure, age, lifestyle, medical history, and others. Considering this, an employer’s health policy might not provide sufficient coverage to your family.
-
Linking Coverage to Your Employment Status
Corporate health insurance is a group plan provided by your company to all employees, and not only to you personally. Hence, the coverage exists as long as you are with the organisation. Once you leave the company or switch between jobs, your family will be without any health insurance policy.
Another crucial period is retirement. After your retirement, your corporate health insurance plan will lapse, and you and your family will be left with no medical coverage, given your limited income. To help yourself deal with such a phase, it is important to consider an individual or family health insurance plan that will secure you and your family even after retirement.
-
Not Personalised As Per Your Family’s Needs
Corporate health insurance plans are standard plans, offering a take-it-or-leave-it package to employees. The plans mostly lack flexibility for employees or families with special health needs related to pre-existing conditions, maternity care, or care of ageing parents. In essence, the policy could let you down when you need it the most, leaving your loved ones unprotected and requiring alternative options for personal health insurance.
Final Thoughts
While the corporate health insurance does provide for basic coverage, it often fails to meet the diverse and ever-changing healthcare needs. A limited sum insured, non-customizable, and coverage linked to employment render the policy an unreliable option to stand on its own. Medical emergencies, job transitions, or retirement can leave you vulnerable without sufficient coverage.
To ensure long-term financial security and comprehensive care for your family, it is crucial to assess your existing coverage and consider investing in a personalised health plan for complete peace of mind.
Photo by Marek Studzinski; Unsplash
