Which is the best health insurance policy for family?

Team Digit, 18 Oct 2018

Is depending on a company health insurance policy good enough?

When someone talks to us about investments and finances, we have our answers ready! We have done our research on what is best for us and how to select the right avenues. But when it comes to choosing the best health insurance plans for family or oneself, to protect our savings and someone questions us on it, often our answer is “Why do I need one? My company offers me a corporate plan.”

Most of us can relate to this situation. And you might wonder what’s wrong with it? Well, technically, nothing. However, the integral question that remains unanswered is “Is it enough?”. And that is exactly what we will be addressing here, in our simplification drive.

A corporate health insurance plan or a corporate medical insurance plan is definitely a great benefit. Why? Simply because it offers a certain level of protection, at the expense of your employer. :D

But, the problem with having only a corporate health insurance plan is two-fold.

Firstly, a corporate health insurance policy has a standardized Sum Insured for all employees.

However, your needs might differ from someone else’s. The right Sum Insured should be based on your age, life stage, family structure, lifestyle, medical history, etc. Depending on your requirements, a standard corporate health cover might not protect you completely when you actually need it. Suppose, your Sum Insured is 2 lakhs. Unfortunately, you face an illness that requires hospitalization and the bill comes up to 3 lakhs. The extra 1 lakh has to be borne by you.

Now, you might have your savings to bank upon. But in case (God forbid), if you undergo a critical illness and the treatment cost shoots up to more than 10 lakhs, can you still bank on your savings? And even if you can, exhausting all your savings leaves you financially unprotected for the future.

Now we come to the second problem, when you leave your job, your health insurance cover ceases to exist immediately. So, the time when you are in between jobs or on a sabbatical, you are basically without a health cover. If anything unfortunate does happen during this period, you are completely unprotected.

So, what is the solution?

Take a personal health insurance plan parallelly with the right Sum Insured that fits all your needs, so even if your corporate plan cannot cover your health expenses completely, you always have your personal health plan to bank upon. And if 2 health insurance policies are becoming a pain to maintain, stick to your corporate plan and take a top-up plan on it. This way, even healthcare needs that are over and above your corporate plan, are taken care of.

However, in case you leave your job, the amount of cover that was borne by your employer earlier will have to be paid from your pocket as a deductible.

Let us clarify this with an example

Suppose, Rajat has a corporate medical insurance of 2 lakhs. He takes a top-up plan of 5 lakhs, making the total Sum Insured as 7 lakhs. Now, he had to leave the job due to a personal reason and unfortunately, has to be hospitalized for a treatment, and the bill comes to 7 lakhs. As the plan is a top-up plan, at the time of claims, it will only come into action after the company pays the initial 2 lakhs. Given that they are no longer responsible for his health insurance plan, that amount will have to be paid by Rajat himself, as a deductible.

So, if you take our advice, don’t just depend on your corporate plan. The wise thing to do is to take a personal health insurance cover, so that you are never under-insured or left without a health cover.

After all, this is about the most important aspect of life: your well-being.

Here is blog explaining how to choose the best health insurance policy for yourself and your family.

Explain it like I'm five

We're making insurance so simple, now even 5-year-olds can understand it.

You are on a school picnic to an amusement park. You are not carrying lunch with you, as your school will provide you sandwiches. You think it will be enough, and so, you do not carry any pocket-money with you. But your hunger doesn’t go with the sandwiches served. If only you had carried some money along, you could have bought something for yourself to eat.

Team Digit

Digit is a General Insurance company on a mission to Make Insurance Simple for people. We are backed by Fairfax, one of the largest insurance companies in the world.

Subscribe for updates