Personal health insurance vs corporate health policy

1. Personal health insurance vs corporate healthpolicy • Health is wealth. And thanks to the mounting burden of quality medical care, when health deteriorates, you need to spend a lot of your wealth to recover. Hence, ahealth insurance policyis a must-have for every individual. It provides you with financial support to avail good-quality healthcarefacilities. • Moreover, it gives you the much-needed peace of mind (which in turn keeps your hearthappy!) • There are various types of health insurance policies available in the market these days– • personal or individual healthinsurance, • family floaterinsurance, • group health or corporateplans, • senior citizen healthcareplans, • critical illness insurance,etc. • You can choose the best health insurance as per your own needs, medical conditions, etc. However, the most common dilemma as to whether you need personal health insurance when your employer already covers you under a corporate health insurance policy. If you are also wondering the same, readon… • What is a personal health insurancepolicy? • This type of health insurance policy is bought by an individual for himself or his dependents. The premium of such policies is decided to basis a host of factors such as the age of the insured members, medical history, sum insured,etc. • What is a corporate health insurancepolicy? • These insurance plans are offered by an organization to its employees or members. Also known as a group health insurance, they offer a standard set of benefits to all thepolicyholders. • While technically both these policies offer financial assistance for medical treatments, they differ in a lot of aspects. It is important to understand the nuances involved in these health policies. Here is a quick comparison of the pros of personal and corporate health insuranceplans. • Benefits of a corporate healthpolicy • There are several aspects wherein a group cover scores over personal healthpolicy. • These policies often do not involve any medical check-up as a joining pre-requisite. In personal insurance plans, it is necessary to get a health check-updone. • Bulk buying translates into discounts. Group insurance plans cost lesser than individual plans. The premium is either fully paid by the employer or there is a co-pay arrangement between the employer andemployees. • Maternity benefits are offered to thepolicyholders. • Pre-existing diseases are covered under corporate healthpolicies. • Usually, in personal insurance plans, there is a 30-day exclusion period in which only accidental claims are entertained. Corporate health policies do not have suchprohibitions. • These policies involve minimalpaperwork.

2. Benefits of a personal health insurancepolicy • The USP of a personal health insurance policy is its customization. You have full control over the policy. Corporate health plans are meant for a large group of people. They cannot be customized as per individual requirements or medicalneeds. • Corporate health policies cease to cover you once you move out of the organization (change of employer or post-retirement). Such limitations do not come with personal insuranceplans. • Many personal plans offer special benefits such as NCB (No claim bonus) or a cumulative bonus for zero claim years. This helps to bring down the premium for subsequentyears. • FinalWords • So, which is the best health insurance policy – personal or corporate? Corporate health plans may seem like a cheaper proposition but you cannot rely on them for a lifetime. They may not be able to adequately cover all your medical needs. Hence, even if your employer offers you the best health insurance plan, it is important to supplement it with a good personal Mediclaim policy. Always remember that it is not a choice between a personal health insurance policy and a corporate health plan. They are not substitutes for eachother.