Several MNCs offer corporate family health insurance plans to their employees as an additional perk to express their concern for their employee’s health. However, the sum insured is rarely sufficient to cover the out-of-pocket medical expenses for an entire family.
Additionally, underinsurance can provide you with a false sense of security and cause you immense stress when your family members encounter any medical emergency. Here are a few reasons why your corporate health insurance is not sufficient to protect your family’s health.
8 Reasons Corporate Health Insurance Is Not Enough for Your Family
Below are 8 reasons which emphasise the fact that corporate health insurance is not sufficient for protecting your family’s health:
1. Limited Number of Members Insured
Apart from you, the policy will usually cover only your wife and children. However, there can be additional members in your family who are not covered under this policy. So, it is imperative that you purchase separate individual health insurance policies for them to combat adverse health conditions.
2. Limited Sum Insured
A corporate health insurance policy offers a limited sum insured that is often insufficient to cover the inflating medical expenses. Also, there are several conditions attached to the policy that you must fulfil to raise a claim. So, it is not enough to cover the health requirements of all of the family members.
3. Change in Company Policies
The company policies keep on changing frequently. Hence, you cannot be sure that they will offer you a corporate health policy. Additionally, the sum insured, clauses and premiums, too, keep varying. Hence, it is important to have individual health insurance for financial security in case of emergencies.
4. Dependent on Employment Status
Corporate employees keep changing their job after every 2 to 3 years for better opportunities and a hike in salary. One of the most important drawbacks of corporate health insurance policy is that once you leave the job, it expires. So, you must not be solely dependent on your corporate health insurance policy and instead buy an individual one to make it last.
5. Absence of A Customised Plan
Corporate family health insurance plans are designed to cater to the generalised need of employees. However, the employees have certain specific needs from a health insurance policy for which they must opt for an individual health plan. They have the liberty to customise these individual health insurance policies as per their needs and health conditions.
6. Absence of No Claim Bonus
You cannot accumulate bonuses over the years for a corporate health insurance policy. Also, insurers will not bestow you with a No Claim Bonus. Hence, there arises a need for an individual health insurance policy.
7. Associated with Co-Payment Clauses
At times, corporate health insurance policies are associated with a co-payment clause. This means that your company will only pay a part of the premium. You will have to pay the remaining part of this premium from your own pocket. This, at times, might pose an additional financial burden on you.
8. Not Available After Retirement
Once you retire from the company, the policy, too, expires. So, if you suffer from serious health issues and need funds urgently, you cannot claim a corporate health insurance policy. To keep from such situations, it is vital that you purchase an individual health policy separately.
However, there are several advantages of a corporate health insurance plan as well.
Benefits of Corporate Family Health Insurance Plans
Below are certain benefits of corporate health insurance policies:
1. Low Insurance Policy Premium
The premium of a corporate insurance policy is lower when compared to an individual health insurance policy. This is so because your company pays for the premiums, and occasionally you may have to pay only a part of it. Additionally, since the sum insured is less, so the premium is quite low.
2. Covers Pre-Existing Diseases
If you have any pre-existing diseases, you can mention that to your employer and insurer. This helps them to frame the policy in a way to cover any financial emergencies arising from that disease. However, if such a thing happens after preparing the clauses, you cannot make a claim to cover for the same.
3. Provides Maternity Coverage
A corporate health insurance policy provides sufficient coverage to a pregnant woman for C-section delivery, normal delivery, pregnancy complications and newborn cover. However, in case of individual health policy, you will need to purchase these add-ons separately.
While corporate health plans have their benefits, they are often not sufficient for the entire family. Therefore, it is imperative to purchase an individual or family health insurance policy if you are looking for a customised plan with a higher cover for all the members of your family.