Benefits and Limitations of Corporate Health Insurance Policies

Health insurance is not longer a luxury in 2021, but a necessity instead. With growing instances of health ailments gripping people at large, it has become of utmost importance to have a medical coverage. In addition, the treatment costs are soaring northwards which makes it almost impossible to pay for these expenses out of your hard-earned savings. Thus, health insurance plans serve as a financial cushion.

Health insurance is no one-size-fits-all approach. Instead, different plans serve different purposes. Among the many types of health insurance plans, a group insurance policy is one of it. This policy is also known as a corporate insurance cover since it is the employment when it is most common setting for this group insurance cover. A group insurance plan offers coverage for all its subscribers associated with an organisation. In addition, some policies extend coverage to their family members as well. These policies provide standard hospitalisation cover in addition to other health insurance features to the subscribers of the policy.* Standard T&C Apply. This article elaborates on some of the benefits and limitations of a group/corporate health insurance policy. Let’s have a look.

Benefits of corporate health insurance plans

Waiting period: One of the main benefits of a corporate insurance policy is the waiting period. Unlike other insurance plans where the waiting period for pre-existing ailments and maternity conditions range between 24-48 months, a corporate insurance policy enjoys the benefit of no waiting period. The employees covered under such policy are covered right from day one.* Standard T&C Apply

Coverage for pre-existing ailments: Most of the claims under a corporate insurance plan, despite having any pre-existing ailments are accepted. While some insurers deny coverage or levy a premium pricing along with long waiting periods, a corporate policy offers coverage for pre-existing diseases. * Standard T&C Apply

Pre-policy check-up: Health insurance policies generally have a medical screening before the policy is issued based on certain conditions. The same is not required in case of corporate insurance plans, even for senior citizens.

Employer’s coverage: With a corporate plan, you need not require keeping a track of renewing your policy since the premium is paid as part of your salary benefits by the employer directly. In case of any optional features opted, you are required to pay for these which is deducted from your compensation.

Limitations of a corporate health insurance plan

Amount of coverage: Corporate health plans have a limited sum assured. Considering the rising medical inflation, this amount will not cover the entire treatment cost. So not relying exclusively on a corporate health cover is advisable. You can purchase a family floater health insurance plan for your family, or an individual cover based on your requirements.

Co-payment clause: Some corporate policies have a co-payment clause that imply you, the policyholder to share the burden of claim. These terms are defined at the beginning and is defined as a percentage. Having a co-pay clause in your corporate health policy requires out-of-pocket expenses at the time of treatment.

Policy tenure:A corporate health insurance policy lasts as long as you are associated with the organisation. Any change in employment means termination of policy cover thereby leaving you without any financial safeguard for ailments. Thus, it is not recommended you exclusively rely on corporate health plans, but instead combine it using other health insurance plans.

At the end, remember, insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.