Is employer’s health insurance enough?

Today, apart from the lucrative salary packages, most big corporations and companies offer health insurance to their employees as part of the varied perquisites and benefits. And, because most of us are satisfied with and happy about merely being provided with insurance, we hardly look at the fine print and read the terms of conditions of an employer’s health insurance. Most of us do not even contemplate purchasing personal health insurance. 

However, does employer-provided health insurance always suffice? Is there really no need for personal health insurance if you possess an employer’s health insurance? Maybe not! In this article, we throw more light on why employer’s insurance alone is not sufficient and why it is prudent to have personal Health Insurance apart from just a corporate, employer-provided one.

#1. It lasts only until you work for that organization

Unfortunately, you can avail an employer-provided health insurance only until you are associated with that particular organization. Once you quit, your health insurance is automatically terminated. So, an employer-provided insurance plan is only a benefit – it is not a right.

What if you encounter a health emergency when you are between jobs? This is exactly where a personal health insurance plan will act as a safety net, fulfilling your health needs irrespective of your employment status.

#2. You might not be able to tailor it to your needs

In a corporate health insurance policy, you are provided with a fixed and standard plan, which is the same for all the employees. Such insurance covers the most common and generic ailments and their treatment procedures. And there is no way in which you can customize or change the terms and conditions of this insurance. However, everyone’s health needs are different and the one-size-fits-all approach might not work in the health sector. 

In sharp contrast, when you purchase a personal health insurance policy, you are able to customize it to your and your family’s requirements.

For instance, if you have elderly parents as dependents, you can opt for a higher coverage sum in a personal insurance plan. But, an employer-provided insurance will provide you with only a specific coverage sum, which you cannot negotiate. Also, if you have a family history of a few illnesses, you have the liberty to customize a personal health insurance policy accordingly: you can specifically add a critical illness cover for such illnesses, something that you cannot do in an employer-provided one.

#3. Your post-retirement needs are not covered

Think of when you would require health insurance the most? Wouldn’t it be in your old age when you are most susceptible to diseases and health conditions? However, as discussed earlier, employer’s health insurance is valid only until you are employed with a particular employer. 

Imagine what would happen after you retire? Who will cover for the health needs of you and your family in these times when you are most vulnerable? 

It is a fact that health insurance becomes difficult to purchase and is more expensive as you age. You might not even be eligible for health insurance if you want to purchase one after your retirement. It is certainly a wise idea to buy a robust health insurance plan when you are young.

#4. Your dependents might not be covered

An employer-provided health insurance plan might or might not cover your dependents, such as parents, spouse, or children. Even if it does, there is a limit to the number of people it covers. So, if you have a large family or many dependents, an employer’s health insurance will certainly not suffice.

#5. The terms and conditions might change

Unfortunately, the terms and conditions of an employer-provided insurance might change at any time. For instance, if an organization is facing hardships, it might decide to reduce the coverage amount, or worse still, cancel the health insurance policy itself. In such a scenario, many employees might be left in a lurch with no respite in case of any medical exigency.

#6. Cannot avail any other additional benefits

In a typical employer’s health insurance, you cannot claim for any benefits such as a no-claims bonus, lifelong renewability, or higher coverage. Also, you do not get any tax benefits from such a policy. However, such added benefits can be claimed easily in a personal Medical Insurance abu dhabi plan.

In sum, while there is no doubt that employer’s health insurance is a benefit, it might not be sufficient for you at all times. It would be a good idea to purchase a personal health insurance plan, which would act as a great supplement and an added cushion, mitigating any financial strain that you might face during a health emergency and giving you the much-required peace of mind.