Why employer health insurance is not enough?

Getting a job in a reputed organisation offers access to several perks, in addition to your salary. One of the most common and important perquisites is the health insurance plan offered to every employee. Employer health insurance is a part of the many benefits offered by your company, right from the time you join them. Some organisations extend the insurance benefits to their employees' families as well.

Did you know? Corporate health insurance is not enough to safeguard you against all types of medical emergencies. Generally, companies provide health insurance for employees to avail income tax benefits. Moreover, these healthcare plans offer minimum coverage, which could make you feel constrained. Here are a few more loopholes in employer health insurance received from your employer:

Limited Coverage

Medical costs are continuously soaring and sky-rocketing. From doctors' consultation charges to hospital room rents, everything is expensive. Hence, a bare minimum health insurance plan wouldn't suffice in the current times. And most private companies offer inadequate coverage for their employees. In fact, a lot of plans even come with room rent capping, high deductibles, and co-pay clauses.

Employee Status

Employer medical insurance is accessible only until you are associated with the organisation. If you choose to switch jobs or quit and start a business, this policy will be terminated instantly. Hence, it is not advisable to rely on your company to meet your health insurance needs. And let's say, you do not quit the job, we cannot forget that we will all retire by 60.

Now, insurance companies do not offer medical insurance plans to senior citizens easily. Getting health insurance after a certain age demands numerous medical tests. In case you have pre-existing health conditions, the new medical policy does not cover your expenses. Getting health insurance at a young age that extends beyond your retirement age is a smart option.

End Policy Cover/Change in Policy

Providing health insurance to employees is not mandated by law. Hence, your employer can choose to revise the clause and remove these additional perks at any time. This will compel you to enter the world of financial stress caused by medical uncertainties.

Considering the increasing rate of medical conditions, it is not advisable to stay in an uncertain position. Rather, you must opt for individual or family health insurance that can protect you and your loved ones from unforeseen medical expenses at any given point.

Customised as per the Organisation

The terms and conditions of an employer health insurance plan are discussed and set between your organisation and the insurance company. Critical illnesses that should be covered, minimum and maximum sum insured, the inclusion of dependents, and hospital admission are all customised to meet the employer's needs. However, what about your healthcare needs? You cannot enjoy all privileges other policyholders avail under their medical insurance plan. With individual health insurance, you can modify the plan at every stage of your life. However, you cannot do that with your corporate medical insurance.

Employer health insurance plans can be a great example of the saying "something is better than nothing". While it is better to have at least this than nothing, you cannot rule out the possibilities of unemployment and career change. You won't be able to avail corporate health insurance if you lose your job or choose to switch to a company that doesn't offer such additional perquisite. Such loopholes in a medical insurance policy indicate that you must opt for a separate medical insurance plan. It is imperative that you consider corporate health insurance as your secondary cover which can be used if and when your individual healthcare plan runs out.