Leaving your job? Here's how to avoid insurance gaps
What's the story
When Indian employees switch from the comfort of group health insurance provided by their employers to the unfamiliar territory of individual health insurance plans, it can feel like stepping off a well-worn path into the wilderness.
This transition typically happens when one is switching jobs, retiring, or starting a new venture.
Navigating this change is key to ensuring continuous health coverage without emptying your pockets.
Coverage needs
Understand your coverage needs
Before you start searching for a health insurance plan, you need to understand your and your family's healthcare needs.
Key points to consider: Any pre-existing diseases, your favorite hospitals and doctors, and your future medical needs.
This will help you choose a plan that not only provides sufficient coverage but also prevents you from paying for benefits you do not need.
Plan comparison
Compare plans thoroughly
The Indian health insurance market is a jungle of choices.
When switching from a group to an individual plan, do your homework. Compare different policies for premiums, sum insured, inclusions, exclusions, network hospitals, and claim settlement ratios.
Online comparison tools can make this easier, but always read the fine print.
Continuity benefits
Look for continuity benefits
One major worry when moving from corporate to personal insurance is losing continuity benefits like waiting periods for pre-existing conditions.
Fortunately, some insurers do provide plans with the option to carry over some continuity benefits from your corporate policy.
It's crucial to ask about this while you are out shopping for your new policy.
Top-up options
Consider top-up plans
If you think full-fledged individual health plans are costly compared to your group cover, or you wish to get high coverage at low cost, you should purchase a top-up or super top-up plan.
They get triggered after a certain limit (deductible) is exhausted, and provide a cost-effective method to enhance your total sum insured.
Government schemes
Don't overlook government schemes
India has numerous government-sponsored health insurance schemes that provide significant coverage at minimal or no cost.
Although these may not provide as extensive coverage as private plans, they serve as an excellent foundation or supplement to an individual policy, particularly for those transitioning between jobs or starting their own business.