When you join a corporate job, generally your company provides you with a base health insurance plan. This health insurance plan provides a reasonable safety net for you and your colleagues.
Still, it has been observed that the company offered health insurance plans often fall short in offering their employees comprehensive and complete health coverage.
This gap often results in creating problems for individuals in dealing with difficult health challenges. This needs complete focus and attention of individuals, even as the health management charges, hospital admission expenses are all rising rapidly due to the impact of inflation.
A personal health insurance plan hence is a crucial key to keep your health and health related finances in order. This becomes even more crucial in a nation like India where health insurance penetration is low.
What are the limitations of company health plans?
- Coverage caps, limited amounts insured: Generally corporate health plans have limited coverage. The total coverage amounts are basic in nature. This may not suffice for major medical expenses as the cost of treatment and various procedures is rising continuously. That is why a separate personal health insurance policy can provide additional financial protection.
- Job loss possibility and job security concerns: Now, if you change jobs or face layoffs or unemployment, then in such a situation your company provided health insurance plan may lapse. Such a situation can leave you without health insurance coverage. In such a scenario, your own personal health insurance can come in handy as it remains unaffected by employment status.
- Family coverage and health protection: Corporate plans often do not cover family members comprehensively. Personal health insurance on the other hand provides you a little bit of flexibility, by giving you the chance to extend coverage to your family members and dependents. This ensures that the overall family health costs are kept under control.
What are the major challenges in India’s health insurance landscape?
Despite efforts to increase health insurance penetration, challenges persist:
- Affordability: High premiums, hidden charges and GST on health insurance premiums make it less affordable for many Indians.
- Coverage gaps: Most of the health insurance schemes, including government-backed ones such as Ayushman Bharat, do not cover outpatient services, which account for a significant portion of healthcare expenses.
What are the benefits of personal health insurance?
- Comprehensive coverage and complete cover: Your personal health insurance cover can help you cover a broader range of medical expenses including outpatient care, costly surgeries and chronic conditions.
- Continuation of health insurance: Now, you can continue with your personal health insurance coverage and even consider enhancing it if you want, even if you leave your job, get a new job or retire.
- Benefits with regards to taxes: The premiums paid for personal health insurance are also eligible for tax deductions under the Section 80D of the Income Tax Act.
Conclusion
Hence, in a nation like India depending on company provided health insurance plans entirely is not the most prudent decision of them all. Such a decision can leave you vulnerable and prone to sudden and unexpected medical expenses.
In such a scenario, supplementing your company provided health insurance with personal health insurance can provide you with much needed peace of mind and enhanced health and health related financial protection.
Therefore, as the Indian health insurance sector evolves you should focus on reading, speaking to health insurance professionals and trying to boost your health insurance coverage based on professional guidance. These simple steps will go a long way to help you in securing your health insurance needs and future aspirations.
Disclaimer: This article is for informational purposes only and not a substitute for professional insurance or medical advice. Please consult a certified expert before making health insurance decisions.
