Should I go for health insurance now, when my company is covering me?

POSTED BY Sunil Kumar ON April 5, 2011 11:18 pm COMMENTS (10)

Hi All,

I am currently having a health insurance from my Organisation, that I am working with.  Should I additionally go for an additional health insurance of my own? Under what circumstances, should I go for an additional one? Note, currently, my company provides me a cover of 2L for my family and additional 3L for my parents, which looks fine with me.  Do you see its less?

Can’t I go for an health insurance only in case, if my current employer is not covering the  health cover? 

Note, unlike other insurance, the premium for health insurance will be reviewed periodically and generally, the insurance amount paid through company is less than the amount to be paid personally(when going seperately) and additionally all diseases are covered from day one, when we go through company unlike, unlike personal one.

I know, its little bit too much of questions. 🙁

Thanks

Sunil Kumar

10 replies on this article “Should I go for health insurance now, when my company is covering me?”

  1. Sunil Kumar says:

    Well 5yrs was just an example.
    Pasting the premium for “Easy Health Insurance- Standard Plan” from “Apollo Munich Health insurance”
    Pasting the age slab for 2,00,000 SI (2+2).
    Age – Premium
    18-35 –      6,948.90  
    36-44 –      7,782.77  
    45-50 –    12,298.45  
    51-55 –    12,463.90  
    56-60 –    14,890.50  

    You would see that the premium would increase, when you increase the age at http://www.apollomunichinsurance.com/family-easy-health-premium-calculator.aspx.

    In your case, the premium might have decreased, since you have not claimed any amount due to hospitalisation.

    Thanks
    Sunil Kumar

  2. @ Sunil Kumar, can you please tell me from where you got the info that premium is reviewed every 5 years? I have renewed my insurance for 3 years nows. The premium has actually gone down.

    1. healthinsuranceshoppe says:

      @sambarn

      Actually few companies in india offers no claim discount and whereas maximum offers no claim bonus where sum insured is virtually increased.

      If you have policy of bharti-axa or star health, then your premium will down on renewals in case of no claim

  3. Sunil Kumar says:

    Hi All

    Thanks for all your valuable responses.

    What I understand is that the premium doesn’t remain the same and it will be reviewed periodically and would certainly increase for every reviewal.

    Let’s say, on an average everyone works till 55yrs. Now, I am 35 and the premium would get reviewed every 5yrs. How about buying the policy at the age of 50yrs, and now to continue using the policy provided by the organisation. Generally 5 yrs from 50-55 age should be good enough to cover the preexisting diseases. Do you any problem in this?

    Thanks
    Sunil Kumar

  4. Thanks Manikaran. That was useful.
    My personal non-company health insurance policy is united india platinum.
    I have gone through the policy document but do not remember any clause telling anything about duration. Hence as of today I do not know how long can it be renewed. May be it is renewable, may be it is not. I will ask my agent. If any forum reader has the answer, it will be of great help.

    So the conclusion till now is:
    Personal mediclaim necessary as a backup during job-life.
    Utility of personal mediclaim taken at a young age for post-retirement is still doubtful.

    1. @sambaran.
      1. United India Platinum would be renewed lifetime. Only difference is that after the age of 35, it would be migrated to United India Gold.
      2. All Govt. Companies offer lifetime insurance. In fact, they are the ones who have faced the test of time.
      3. Since as mentioned by many above, terms are changeable, how do you know the Private companies offering Lifetime, wont change terms in the later stages. I have seen Govt. Companies are renewing policies of people as old as 90 years/

  5. @Sambaran…Renewing of your current policy definitely depends on your Insurer’s terms. There’s a particular Renewability age mentioned in your product. If your Insurance does not offer renewability after a certain age say 65 or 70 then you don’t left with any choice. that’s why the new policies like of Apollo Munich and Max bupa are getting popular as they offer Life time renewability.

  6. The reasons cited in favour of taking an additional personal policy (on top of company policy) are :
    1. What if you are fired, what if you are changing jobs, what if company goes bankrupt etc. In other words, back up protection during job life.
    2. Same point as Nitin Gupta made above. Company policy is group-insurance policy and you cannot get the goodness of pre-existing-disease-exclusion, low-premium etc when you are taking out a fresh personal insurance policy at an old age. In other words, protection during retired life.

    I have doubts about bullet-2. I have heard that insurers are within their legal right to reassess terms of policy. Assume I have a personal medical insurance and I renew it with old-age-retirement in mind. At age of 58, insurer tells me that they are no longer interested in renewing my policy. In that case my situation is similar to a person who did not have personal medical insurance.
    Is this understanding true?

  7. Nitin Gupta says:

    i am satisfied with the health package that u have from ur employer and am not concerned abt the present.
    the thing is that, when u will not be having job(assuming retirement), you wil try to get a policy on ur own and at that time, might be old to get a policy. If u start a policy now, insurer will not have problems in carrying it for old age also.
    It was my understanding check it before believing on it 🙂

  8. ashal jauhari says:

    Dear Sunil, For the uncertainty of life – You may change your job, your co. may fire you, Co. may go bankrupt, it’s advisable to have a back up plan.

    To get mediclaim policy at cheaper rates, you may contact your bank as many banks are now offering tie up policies for heir customers which are cheaper than regular individual plans.

    Thanks

    Ashal

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