It is more advantageous to have both business and individual health insurance

It is more advantageous to have both business and individual health insurance

A lot of workers rely only on their employer-provided group health insurance. But this is not a prudent course of action. Ideally, you should have a separate insurance for your parents and an independent one for yourself.Why you need a different health insurance from the group health plan offered by your work.

A corporate employment provides benefits beyond a large salary, generous housing allowance, and other bonuses. The group health insurance coverage is among the most important sources of comfort provided by businesses.

Such an insurance covers the employee as well as her husband and children. Employers continue to cover their workers' parents and in-laws even if they have been scaling down benefits over time. The main advantage of these plans is that they provide coverage for pre-existing conditions from the outset, which often results in claim denials.

In the last two years, a growing number of Indians have purchased or upgraded their health insurance policies due to health concerns raised by COVID-19 between 2020 and 2022 and the associated hospitalization expenditures.  However, according to an Avendus report published in 2023, more over 45 percent of Indians lack health insurance, and just 60 million people are insured by retail or corporate health insurance.

A lot of workers rely only on their employer-provided group health insurance. But this is not a prudent course of action. Ideally, you should have a separate insurance for your parents and an independent cover for yourself.

Employers' health benefits are not very useful.

The insurance that your employer provides is only valid while you work for them or are employed by them. It does not last forever.

The cover disappears the day you resign or leave. It's possible that your future job won't provide a sufficient amount insured or won't cover parents. Additionally, the cost of purchasing health insurance will inevitably increase as you become older, which is why you should get an individual policy earlier in life.

An individual insurance, in contrast to group coverage offered by employers, is often renewable for life. Not only do most employer insurance have sub-limits on room rent or co-pay, but they also often have smaller quantities covered, ranging from Rs 3-5 lakh.

Purchase sufficient insurance

You may begin with a minimum coverage of Rs 10 lakh if you reside in a metro area and are between the ages of 35 and 40. This is a result of the much greater cost of healthcare in large cities. Although this is plenty to begin with, make sure you check your coverage at least once every five years to take inflation in medical costs into consideration as well as your current state of health.

Additionally, if you want to get a family floater insurance to cover more than one person, the amount would be greater. A young family of four, consisting of a couple in their 35s and 40s and small children, need to consider obtaining family floater coverage of Rs 20 lakh.

A separate safety deposit box for aging parents

You may get a family floater insurance that will cover your parents, even older people. However, it's advisable to get a separate policy and leave them out of your family floater. This is due to the fact that chronic disorders like diabetes, hypertension, or heart diseases are very likely to be present in them. Both the number of hospital admissions and the total amount claimed each time will increase.

You should consider a maximum amount insured if you are a senior person or are planning to get insurance for your aging parents. If it seems too expensive, consider top-up plans or senior citizen coverage.

Cover size is influenced by many things.

General estimates are sums insured of Rs 10 lakh for an individual aged 35 to 40 and Rs 20 lakh for a family floater policy.

To arrive at an optimum amount insured, you should ideally consider your age, family health history, level of life, income, affordability, and location of residence (metro or non-metro).

For instance, the cost of a hospital room varies depending on the kind of room you choose and is subject to additional fees. Therefore, you will want more amounts insured if you desire upscale single rooms. It is advisable to get a cover with future costs in mind due to the increasing cost of healthcare and improvements in the treatment of certain ailments. People in the bulge bracket may also want to look into plans that cover even scheduled medical costs overseas and quantities covered up to Rs 1 crore (basic cover + top-up).

Top-up as opposed to one big cover

Purchasing a top-up plan in addition to a base (regular) coverage will save more money than purchasing a single big cover. This is so because the top-up policy doesn't kick in until the basic cover runs out. The top-up will kick in to pay the extra Rs 2 lakh if your hospitalization cost totals Rs 7 lakh and your basic policy is for Rs 5 lakh. You would be responsible for paying this Rs 5 lakh deductible limit out of your own cash if you do not have a basic insurance.