Health insurance has become a crucial necessity. Recognizing its importance, many workplaces now provide health insurance for their employees, known as Corporate Health Insurance. However, people with corporate health insurance often hesitate to get personal health insurance. They believe that since their employer has already provided coverage, there is no need to obtain separate health insurance.
This is a misconception. Even if you have corporate health insurance, it is essential to have personal health insurance as well. It is financially beneficial in the long run. Below, we explain why having personal health insurance alongside corporate health insurance is important.
Why Is Personal Health Insurance Necessary?
1. Coverage for Expensive Treatments
Treating serious illnesses often costs lakhs of rupees. For instance, many people spent a significant amount on Covid-19 treatments. Personal health insurance is more beneficial as its sum insured is typically higher than that of corporate health insurance.
2. Advantage of No-Claim Bonus
Corporate health insurance does not offer a no-claim bonus. However, if an individual holds personal insurance alongside corporate insurance, they receive a no-claim bonus. This bonus can help reduce the next premium payment, making personal insurance cost-effective in the long run.
3. Consistency During Job Changes
Corporate health insurance changes when you switch jobs, potentially leaving you without coverage. Personal health insurance ensures continuous coverage without any disruptions.
4. Long-Term Benefits of Personal Health Insurance
Many personal health insurance policies provide coverage for all diseases after a specific waiting period. Financial experts recommend personal health insurance in addition to corporate coverage. It requires annual renewal and offers lifelong benefits, ensuring better financial security.
Pros of Having Corporate Health Insurance
- No waiting period is required to obtain corporate health insurance.
- The company provides insurance without the need for any prior medical check-ups.
- Easy claim process, even for individuals with pre-existing illnesses.
Corporate Health Insurance vs. Personal Health Insurance
| Aspect | Corporate Health Insurance | Personal Health Insurance |
|---|---|---|
| Cost | Lower cost as it is employer-sponsored. However, benefits are limited. | Higher cost, but provides more comprehensive benefits and coverage. |
| Choice | No personalization; standard policy for all employees. | Highly customizable as per individual needs and preferences. |
| Benefits | Limited benefits; no provision for No Claim Bonus (NCB). | Offers NCB, enabling reduced premiums over time for claim-free years. |
| Job Stability | Coverage ends when you change jobs or leave employment. | Coverage continues regardless of employment status, offering financial security. |
| Coverage Scope | Coverage is often shared among employees, which can result in exhausted funds for some. | Ensures dedicated coverage for the policyholder, regardless of others’ claims. |