How to Convert Corporate Health Insurance to Individual Health Insurance Plans?

For many employees, the financial shield that is health insurance comes in the form of corporate health insurance—a group insurance plan provided by their employer that comes with no waiting periods and no or minimal premiums. It’s convenient and covers not just you but sometimes your family, too.

Yet, what happens when you decide to switch jobs, start your own business, or retire? Does your safety net disappear overnight and leave you insurance-less? Or can you continue the coverage on your own terms?

Here’s the good news—you can! If your corporate medical insurance allows it, you can convert it into an individual health plan, ensuring that your coverage stays intact and you enjoy continuous coverage. Think of it like switching from a company-leased car to your vehicle—you’re still driving, just under a different ownership model.

Now, if you’re wondering how to convert corporate health insurance to individual health insurance, there’s no reason to fret. In this guide, we’ll walk you through the step-by-step process, eligibility criteria, and things to consider while making this transition. 

The actual “best” plan can vary based on individual needs, so it’s critical to do personal research or, better yet, speak to one of Ditto’s IRDAI-certified experts and get solid insurance advice. Book a 30-minute call with us today!

Is It Possible to Convert Corporate Health Insurance to an Individual Policy?

Yes! According to IRDAI’s Guidelines on Migration and Portability of Health Insurance Policies (IRDAI/HLT/REG/CIR/003/01/2020), employees covered under a corporate health insurance plan (which falls under group insurance) have the option to migrate to an individual or family floater health insurance policy. However, not all group policies offer this conversion, so checking with your insurer beforehand is essential.

To be eligible for migration:

• The corporate health insurer must allow conversion.
• The request must be made before leaving the company or within the insurer’s specified timeframe.
• Only indemnity-based hospitalization policies qualify for conversion.
• The same insurer must issue the new policy as the corporate plan.

Additionally, the new family floater policy can include family members covered under the corporate plan, such as a spouse, children, or parents. However, insurers may underwrite the policy, meaning they might review health conditions before issuing coverage. The sum insured and any accumulated bonuses from the corporate policy can be carried forward, but the remaining waiting periods for pre-existing diseases will apply under the new plan.

Employees should initiate the migration process at least 30 days before their last working day to avoid coverage gaps. The insurer cannot charge extra fees for migration, and underwriting decisions must be communicated within 15 days.

How to Convert Corporate Health Insurance to Individual Health Insurance?

Stick to the following steps to convert your corporate insurance into individual health insurance, and you’ll get done with the process in a breeze: 

Step 1: Check if your corporate health insurance provider allows conversion

Not all corporate policies can be converted, so confirm with your HR team or insurer if this option is available.

Step 2: Request a conversion before leaving the job

Make a formal request to your employer and insurer to initiate the conversion process. Doing this at least 30-45 days before your last working day is best.

Step 3: Compare available individual health plans

Even though you need to continue with the same insurer, different plans will have various benefits. Choose one that fits your needs regarding coverage, premium, and additional riders.

Step 4: Submit the necessary documents

The insurer will require documents like:

• Your corporate policy details
• Claim and medical history
• KYC documents (ID proof, address proof, etc.)
• Resignation letter or proof of last working day

Step 5: Pay the premium for the new individual plan

Once your application is accepted, you must pay the premium for your new individual health insurance plan.

Step 6: Receive confirmation & updated policy details

After payment, the insurer will issue your new policy with a continuity benefit (if applicable). Review the policy document to ensure all details are correct.

Things to Keep in Mind While Porting Corporate Health Insurance to an Individual Plan

Before converting your corporate health insurance to an individual plan, there are a few key factors to consider. Understanding these nuances will help you maximize benefits and avoid potential pitfalls during the transition:

• Timeframe matters – The conversion must be done within a specific period after leaving the job. Missing this window means losing the porting benefits.
• Same insurer requirement – The individual policy must be from the same insurer as your corporate health plan.
• Benefits may carry forward – If you’ve already completed part of your waiting period for pre-existing diseases under the corporate plan, it will continue in the individual plan. Moreover, your accumulated bonuses may also be carried forward. However, it will vary from insurer to insurer, so check this as well.
• Coverage differences – Corporate plans often charge lower premiums due to employer subsidies but do not provide comprehensive coverage. Individual plans may have different, usually broader, coverage terms.

Corporate Health Insurance vs. Individual Health Insurance

Advantages of Converting to an Individual Health Insurance Plan

When you switch from a corporate health insurance plan to an individual policy, you gain several benefits that provide long-term security and flexibility. Here’s why converting your policy is a smart move:

• Continuity of coverage – Unlike corporate health insurance, which is tied to your employment, an individual plan stays with you regardless of job changes, layoffs, or retirement. This ensures you remain insured without interruptions, eliminating the risk of being left uninsured during a career transition.
• No loss of waiting period benefits – One of the most significant advantages of migration is that any waiting period already served for pre-existing diseases (PEDs) under your corporate policy is credited to your new individual plan. For example, if your corporate insurance had a 3-year waiting period for diabetes, and you’ve already completed 2 years, you’ll only need to wait for one more year under the new plan instead of starting over.
• More flexibility – Unlike corporate policies offering standardized coverage, individual health insurance allows you to customize your plan. You can choose a higher sum insured, add-ons like maternity coverage, critical illness cover, OPD benefits, wellness rewards, and the type of hospital room coverage. This ensures your plan meets your personal and family healthcare needs, which a one-size-fits-all corporate policy often cannot.
• Independence from employer-provided benefits – Relying solely on corporate health insurance can be risky because it disappears when you leave your job. An individual policy provides long-term financial security, ensuring you always have medical coverage—whether you’re switching jobs, starting your own business, or retiring.

By converting to an individual health insurance policy, you take control of your healthcare rather than depending on an employer’s plan that may not always be available or sufficient for your needs.

Is Corporate Health Insurance Enough?

While corporate health insurance is a valuable benefit, it has several limitations:

• Coverage is linked to employment as the employer is the master policyholder, meaning you lose it if you switch jobs or retire. 
• Employer-chosen sum insured may not be sufficient for major medical expenses.
• Maternity benefits and OPD coverage are often limited.
• Your benefits may be reduced if your employer changes the policy or provider. Moreover, there is no scope for customization; you have to accept the benefits offered by the employer.

Thus, having an individual personal health insurance plan is crucial for long-term financial security and uninterrupted medical coverage.

Best Individual Health Insurance Plans 2025

• HDFC ERGO Optima Secure: This is a robust health insurance plan offering coverage from ₹5 lakh to ₹2 crore. It provides extensive financial protection with no room rent limits, disease-wise sub-limits, or mandatory copayment. The plan includes pre-hospitalization expenses for 60 days and post-hospitalization expenses for 180 days. A key highlight is its 100% restoration benefit, which can be availed once a year, with an add-on available to make it unlimited. Policyholders also benefit from a renewal bonus of 50% per year, up to 100% of the base sum insured, regardless of claims. The Secure Benefit feature doubles the coverage from day one, enhancing the plan's value. With a vast network of over 13,000 hospitals, a claim settlement ratio (CSR) of 98%, and an incurred claim ratio (ICR) of 86%, Optima Secure stands out as a comprehensive and cost-effective choice.
• Care Supreme: This is a feature-rich health insurance plan that provides extensive coverage with flexible options. The plan covers pre-hospitalization expenses for 60 days and post-hospitalization expenses for 180 days. It offers unlimited restoration up to the base sum insured, ensuring continuous coverage for multiple hospitalizations. A renewal bonus of 50% per year, up to 100%, is standard, but an add-on can increase it to 100% per year, up to 500%. With a strong hospital network of over 11,400 hospitals and a CSR of 90%, the plan ensures access to quality healthcare. The plan also maintains an ICR of 59%, making it a balanced option for those seeking comprehensive coverage with a strong claims history.
• Aditya Birla Activ One Max: This is a high-value health insurance plan offering extensive benefits. It covers pre-hospitalization expenses for 90 days and post-hospitalization expenses for 180 days. A major advantage is its 100% restoration benefit, which is available unlimited times, ensuring that policyholders have financial support for multiple claims. The renewal bonus is exceptionally high, at 100% per year, up to 500%, regardless of claim history. With a network of over 12,000 hospitals, a CSR of 95%, and an ICR of 68%, this plan provides both accessibility and financial security. The plan particularly benefits those looking for high cumulative bonuses and unlimited restoration.
• Niva Bupa Aspire Titanium+: This comprehensive health insurance policy is designed for extensive protection. It includes pre-hospitalization coverage for 60 days and post-hospitalization coverage for 180 days. The plan features the ReAssure+ benefit, which triggers after the first claim and allows unlimited restoration for the same and different illnesses. Policyholders can also use the base sum insured and the restoration benefit for a single claim after the first claim. A unique offering is the Booster+ feature, which carries forward unused coverage as per entry age, up to 10 times the base sum insured. With a hospital network of over 10,000 hospitals, a CSR of 91%, and an ICR of 58%, Aspire Titanium+ is well-suited for those seeking long-term coverage with high restoration benefits.
• ICICI Lombard Elevate: This is a flexible and comprehensive health insurance plan catering to various medical needs. The plan covers pre-hospitalization expenses for 90 days and post-hospitalization expenses for 180 days. It includes a 100% restoration benefit of the base sum insured, unlimited times. The renewal bonus starts at 20% per year, up to 100%, but an add-on can increase it to 100% per year with no capping on the maximum amount. The plan also offers optional add-ons to reduce the waiting period for pre-existing diseases and sum insured eligibility. With a hospital network of over 10,800 hospitals, a CSR of 85%, and an ICR of 83%, ICICI Lombard Elevate provides a strong combination of coverage flexibility and financial security.

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Conclusion

Converting corporate health insurance to an individual plan ensures continuous coverage, protecting you from unexpected gaps when changing jobs, retiring, or starting a business. Unlike employer-provided plans, an individual policy offers lifelong renewal, customizable coverage, and financial independence. To ensure a smooth transition, check your insurer’s terms, meet eligibility criteria, and initiate the process before leaving your job. Relying solely on corporate medical insurance is risky—having personal health insurance guarantees long-term financial security and uninterrupted healthcare access.