India has some of the most comprehensive labour laws globally, designed to protect workers' rights and ensure their well-being. Among these laws, one of the most crucial and arguably one of the most important mandates is health insurance for employees of certain companies. While the labour laws may be due for reforms, the provision for health insurance remains a significant benefit for employees.
At Ditto Insurance, we believe insurance is a necessity, not a luxury, and this provision ensures that as many people as possible can access necessary medical care without bearing the entire financial burden. If this makes you wonder what exactly employee health insurance policies are, read on to find out more!
What are Employee/Group Health Insurance Policies?
Employee or group health insurance policies are designed to cover a group of individuals in a particular organisation. Usually, the employee, spouse, children, and/or parents are covered under one master plan, which the employer purchases.
Employee health insurance plans offer good coverage for employees without too many restrictions and sometimes even give access to wellness programs and gym memberships. All of this, while employers usually pay a significant portion, if not all, of the premiums. Insurers also often waive waiting periods for pre-existing conditions and specific illnesses in group policies, allowing employees to access these perks immediately.
However, there are some downsides, too. Let’s discuss this in detail now.
Heads Up: It takes an average person up to 5 hours to read & analyze a policy, and 10 hours or more to compare different plans and make a decision.
This is why we propose a better alternative - taking a 30-minute FREE consultation with Ditto’s certified advisors. We have a spam-free guarantee, and we’ll never push you to buy a plan. Don’t delay this - we have limited slots every day, so book a quick call here before they run out.
What are the Advantages and Disadvantages of Employee Health Insurance Plans?
While employee/group health insurance policies may not be the most comprehensive, there are significant advantages to it:
Advantages of Employee Health Insurance Plans
- More economical than individual policies: One key advantage of employee health insurance plans is their cost. These plans are generally more economical than individual health insurance policies because the risk is spread across a large group of people.
- Waiting periods: More often than not, insurers waive off waiting periods for group/employee policies. This can be particularly helpful in case you or your family need immediate medical attention for conditions that would otherwise be subject to long waiting periods in individual policies.
- Maternity coverage: Most corporate policies cover maternity by default. This means employees do not need to purchase additional maternity coverage separately in their personal health insurance policies.
- Coverage for parents: Many employee health insurance plans also provide coverage for employees' parents. This extended coverage can be a significant advantage especially if you have elderly parents and are not able to purchase a good health insurance policy for them.
Disadvantages of Employee Health Insurance Plans
Despite these benefits, there are some disadvantages to consider:
- Not customisable: The most customisation you can usually make is to choose your cover amount. Add-ons are often unavailable, which can be limiting for some people with unique healthcare needs.
- Lasts only as long as your employment: Employee health insurance plans only last as long as the individual is employed with the company. If you decide to leave your job or retire, you lose your employee health insurance coverage. This can be a critical issue, especially for retirees who might find it challenging to purchase a new health insurance policy due to age or pre-existing conditions.
- May not be a good policy: Not all employee health insurance policies are comprehensive. Some companies may offer basic policies to meet statutory requirements or to save costs, which might not provide enough coverage for all medical needs. These basic policies might have lower premiums but can result in higher out-of-pocket expenses at the time you most need medical care.
Should you buy a separate Health Insurance Plan if you already have an Employee/Group Health Insurance Plan?
The short answer – Yes.
While an employee or group health insurance policy has several advantages, purchasing a separate individual health insurance policy or a family floater is always better. This is because employee health insurance policies cover you only as long as you are employed with the company.
Right now, you probably think you can purchase a health insurance policy when you’re leaving the company or retiring. But remember, by this time, you may have gotten older or have developed pre-existing diseases, due to which you may not be eligible for the most comprehensive policy you otherwise would have. Or the same policy you wanted to purchase when you were younger would have become more expensive due to your age or loading charges imposed by the insurance company.
While there are advantages to group health insurance policies, such as maternity coverage and no waiting periods, purchasing a comprehensive individual health insurance policy is always recommended, especially if you’re young and have no medical complications.
Why Talk to Ditto for Your Health Insurance?
At Ditto, we’ve assisted over 3,00,000 customers with choosing the right insurance policy. Why customers like Mohan below love us:
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Conclusion
Many companies offer employee health insurance policies as a valuable perk. These plans offer several advantages, such as waiving off waiting periods, maternity coverage, and often extending coverage to your parents, who may have pre-existing diseases. However, they do come with certain limitations.
This is why you should consider purchasing a separate health insurance policy or a family floater policy in addition to your employee health insurance policy. Feel free to check out the best health insurance policies for 2024
