Is employer provided health insurance sufficient??

Is there any difference in individual health insurance and employer provided health insurance?

Employer provided health insurance policies are group insurance policies. Though there are benefits such as coverage of pre-existing diseases, there are many disadvantages as well.

  • The cover provided will mostly be inadequate in case of long time hospitalization.
  • You might be under-insured or uninsured.
  • It is available only as long as you are employed.
  • Reduced benefits over the long term due to companies’ cost-cutting mode and hike in group health insurance premiums.
  • It is a yearly contract and so the terms of the contracts are prone to change year after year.

The need for own individual health insurance at an early age:

  • As you age the complexity in health condition increases and so it becomes difficult to buy any health insurance and it is also expensive.
  • Premiums cannot be hiked exponentially without any valid reason.
  • Companies provide bonus for no-claims.
  • It comes in handy if the employer provided insurance limit gets exhausted or when you are in the midst of switching jobs.
  • You can buy two or three insurance policies but make a claim through a single policy and still enjoy tax benefit under section 80D on all the policies.

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