July 19, 2012

Is your Company Group Health Insurance Cover Enough ?

Are you covered under your company’s group health insurance policy? If you are a salaried person, then in all probabilities you must be having your employers health insurance plan which must be covering you, your spouse, children, and parents or some of them. But a lot of people do not want to take a separate health insurance plan from health insurance companies and just want to continue their employer’s group health insurance cover as it looks most affordable Health Insurance to them. However one should also consider an individual health insurance plan for various reasons. Let’s see a few points which you should think about your employer’s group Health Insurance.

Group Health Insurance

1. Your Employer may take back the Health benefit

Health Insurance costs are provided as a perk in many companies. Health Insurance costs are borne by companies themselves and it might happen that in future your employer might take back the benefit of health cover and tell you that it’s not available now onwards. Either you just don’t get it or you need to pay the premiums yourself, just that they can assist employees to get it faster. The other thing which can happen is that they can also reduce the cover itself to lower their burden.

2. Your company may exclude your parents from the health cover

Its something which has already started in many companies. Earlier parents were part of the employer’s health cover, but these days a lot of companies are excluding parents from the health policy provided to the employees. If this happens then anyways you need to cover your parents with an individual health insurance plan.

3. You might not get health cover with your next employer

This is pretty obvious. Not all companies provide health cover in the same way. What is the guarantee that you will get the same kind of cover and benefits in your next companies? I hope you are not going to argue that you will never leave your current job, many people have this point when they argue that they have the cover with their current employer, but then you never know about the future.

4. Will it help you in retirement?

By now you should have been clear that you need health insurance more for your bad days, when you cross 50 and reach your retirement because health insurance is a long term policy and you should always take it considering it for next 20-30 yrs. Things like lifetime renewal and no co-pay in later years are sought after features these days. So even if your employer provides a good health cover right now, what about retirement? When you go to health insurance companies later to buy the plans, be sure that you will not get it or you will pay in gold!

5. Do you have enough Company Health Insurance Cover?

Not many, In the recent survey we did on health insurance cover, the fact that 60% of people (on this blog) have their health insurance cover less than 50% of their annual take-home, now a lot of them must be having it from their employer. Don’t see that you have a health cover, look at the quantum of the health cover? Ask if it is enough for you? Is it something that can support you in case something goes wrong!

Good point about Employer group Health Insurance cover

I don’t say, your employer’s’s health insurance cover is bad. All I am saying it apart from your company health insurance , you might also want to look at a separate policy , that’s all . Some of the best things which an employer health insurance provides is that its easily available without any limitations and restrictions. If you are an employee and the group health insurance is there, you will get it even if you have any pre-existing illness . No one denies it because of a higher age or any past history.

Make sure you have independent Health insurance cover 

The point is that an employer group health insurance cover is a cover which is linked with your employer and hence dependent on him, Its so tied with your company. You should aim at having at-least one independent health insurance plan in your life which you can cover and control, This should be in addition to your employers group health insurance plan.

Do you agree with these points ? Do you think one should take a separate health plan apart from their employers group health cover ?