Top 5 Reasons Why Company Health Insurance is Insufficient

Has your employer offered you a health insurance plan? If yes, do you think it is enough? Health insurance is an additional benefit offered by several employers today.

Company health insurance is beneficial to both employees and employers. Company health insurance is of two types:

1) Group medical and hospitalization insurance

2) Group term life. 

Group insurance basically covers permanent disability and death. The company’s health insurance covers surgery and hospital charges. As there is a limitation on the coverage, employees would not be able to avail 100% coverage. So, it is better to get an additional health insurance policy.

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See Also: Health Insurance Benefits

Top 5 Reasons Why Company Health Insurance is Insufficient

This article gives you the top 5 reasons why company health insurance is not sufficient.

1. Co-payment: Sometimes, employers may have a co-payment clause, which is an accord between employers and employees. The agreement states that the employee has agreed to pay a portion of the overall expenses towards treatment. Based on insurers and their accord with employers, the percentage of co-payment would change. Insurance companies include co-payment clauses just to discourage people from making needless claims and undergoing medical treatment at large hospitals. People opt for these health insurance policies as they get it from their employers and want to make the best use of it.
2. Room-rent limiting clause: Paying hospital room rent gets extremely difficult, when you are hospitalized. Company health insurance has a clause, where room rent per day is covered up to a given ceiling. It is usually below 50% of the overall room rent. Normally, insurers cap room rent as a certain percentage of the sum assured. If the sum assured is Rs 1,50,000 and the room rent is capped at 1%, then the room rent per day is capped at Rs 1,500. You have to check if the hospital room rent cover is sufficient, if you wish to stay in a single room.
3. Employment status: What is employment status while claiming a company health insurance? If you have quit the job, company health insurance is invalid. Under such circumstances, you have to bear the unexpected medical expenses or hospitalization charges, yourself. Considering this, company health insurance is not useful and you must have additional coverage to be safe.
4. Coverage for dependents: Many company health insurance plans only cover four family members: 1) yourself, 2) spouse and 3) two children. If you have dependent parents; you are at risk as some company health insurance plans don’t cover parents.
5. It is an additional benefit: Company health insurance is just an extra facility. Do remember that the extent of cover could be reduced, anytime. Employers are not legally liable to extend health insurance coverage to the entire family. As medical expenses are rising each day, an additional health insurance plan is advisable.

See Also: Family Health Insurance Plan

Having a comprehensive health insurance plan is a must, as medical expenses are rising and health risks increase post-retirement. Availing health insurance at a later age is not easy. The pre-existing ailments may not be covered.

If you carefully examine the features and facilities offered by company health insurance, it may not be sufficient. Avail additional health insurance coverage of your choice. Check the online platforms to choose the best health insurance policy and the process is quite easy. Feel free to talk to financial advisors for further details. Be wise and pick a health insurance plan even if you have company health insurance.

See Also: Health Insurance Plans

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