4 Reasons Why Personal Health Insurance is Important? Should You Rely only on Group Health Insurance - YouTube

Channel: ET Money

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should I opt for my own health insurance plan when I already have a company
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health policy this is one question which is asked quite often and it's truly a
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valid question because like everything else a company health plan has its
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advantages and disadvantages in this video we shall lay the pros and the cons
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of simply continuing your group health insurance plan versus complementing it
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with a personal health insurance plan but before we get started make sure you
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subscribe to the ETMONEY Channel and hit the bell icon for regular updates
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let's get started a group health insurance plan is quite a useful
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compensation benefit and here are five points in support of it 1. under a
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group health insurance plan you as an employee don't have to pay any premiums
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which means your health insurance comes to you free of cost 2. group health
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insurance not only covers you but in most cases it also covers your spouse
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and up to two children sometimes three 3 the waiting period for
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hospitalization is waived off in case of most group plans which means your health
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cover starts from the day it is allotted to you 4th there are no medical
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checks before enrolling into a group health insurance plan 5 and most
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importantly group health insurance plans generally cover pre-existing illness
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from day one which is by far the biggest gain from these plans with these five
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powerful points it is quite difficult to argue that a personal health insurance
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policy will add any value to a corporate group health policy so here are the
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arguments presented by the opposing team who believe that it makes good financial
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prudence that you complement your group plan with a personal health insurance
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policy here are their points first the very assumption that all organizations
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offer health insurance benefits is flawed according to a 2015 benefit
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trends survey only 44% of Indian companies of a group health cover as an
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employee benefit which means if you to move to one of those 56% companies
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which don't offer group health insurance then you can face a massive financial
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stress during a medical emergency second the continuity of group health
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benefits is often just a downturn away when companies will look at ways of
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reducing expenses and the acts will most certainly fall on the group Health
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Insurance Program as companies may reduce the coverage of a policy from
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five lakhs to two lakhs or maybe ask employees to copay some part of the
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premium or apply certain supplements the third argument is the general inadequacy
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of the group health insurance plan most group health insurance plans are either
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2 lakhs or 3 lakhs of coverage now in an earlier video we presented a case to
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maintain your health insurance at at least 6 times of your monthly salary for
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someone earning 80,000 rupees per month our salary or 2 lakh health insurance
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cover will be quite a case of under insurance the difference between the
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requirement and the actual needs to be bridged with a personal health insurance
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plan finally a corporate health insurance plan will almost never last
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beyond your retirement even if you were covered through these plans throughout
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your working life to start a health plan at the age of 60 is never a good idea
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because in addition to the struggles of finding an insurer
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who will accept your case you have to deal with waiting periods exclusions on
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any pre-existing illnesses that you might have and heavy sub limits on
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certain procedures a very effective strategy employed by lakhs of Indians is
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to have both the corporate plan and the individual plan this way you have an
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added cushion in case your medical emergency goes over the corporate plan
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limits along with an abundance of advantages like higher benefits no claim
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bonus lifelong renewability and tax benefits if you liked this video
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do hit the like button and share it with your friends and don't forget to check
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out the health insurance section on the easy money app for more information on
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everything we have discussed in this video thank you for watching