Are You Covered Under Employee Group Health Insurance? You May Still Need An Individual Health Insurance

Nutan Gupta

28 Jul 2017

Suhas is living a normal life; he is a middle-aged man who is working hard for his family. After quitting his previous job, Suhas had a week’s time to start working again at a different company. But unfortunately, before that could happen, he met with a serious road accident. Since he was no longer covered by the Employee Group Health Insurance that was offered to him by his previous company, Suhas’s family is struggling to pay the hospital bills. Things would have been different if Suhas got himself covered with an Individual Health Insurance.

In today's world, having a Health Insurance is a necessity to lead a stress-free life. The various benefits of having a Health Insurance can never be ignored; which includes medical cover, immediate assistance, specialist referrals, tax exemptions and many more. But, one needs to realize that there are many Health Insurances available in the market that are modified to suit everybody’s demands.

Companies offer a mandatory health cover for their employees in order to ensure their well-being. But as an individual, an 'Employee Group Health Insurance' would never provide you with the right kind of health cover.

Features

Group Employee Health Insurance

Individual / Family Cover

Protection when job lost

No

Yes

Protection while changing jobs

No

Yes

Coverage

May not be sufficient as per customer’s needs

Based on customer’s needs

Options to add features NCB, restoration benefits, critical illness

Not available

Available

Limited features like cap on room-rent, doesn’t provide cover for all family members

With restrictions

No restriction



Be Your Own Boss:
Instead of being an option, an Individual Health Insurance is a necessity for every individual. There are multiple reasons as to why an Employee Group Health Insurance is surpassed by the benefits of an Individual Health Insurance.

Independence:
Let us think of an employee who is covered by a group health insurance. And he decides to quit his current job. In such a situation, the employee will no longer be an insurance policy holder if he quits the job. He will anyways have to buy a new individual health insurance that will remain with him as long as he wants that.

Reduced Waiting Period:
In a majority of group health insurance plans, there is a minimum waiting period of 90 days within which no claims will be entertained. Having an individual health insurance exempts you from such delays and provides you health cover right from day 1 in case of an accident. Otherwise, there will be a 30 days waiting period.

Uncompromised Care:
The group covered by health insurance consists of different employees. These may differ according to their designation, the kind of work done or their pay-scale. As a result, the benefit that one gets out of this insurance policy might vary accordingly. By opting for an individual plan, one can insure a higher sum tailored as per his requirements. This ensures an uncompromised care to the insured.

No Claim Bonus:
It is obvious that an employee will receive no claim bonus out of the group health insurance if the policy remains unused until the renewal period. On the contrary, an individual plan provides a guaranteed no claim bonus for the same.

The Common Path
Both the policies require more or less the same number of documents to apply for the claims. The claim form, itemized bills, doctor's report, hospital discharge card and medical papers along with any other scan reports are the documents that one should procure while claiming for an insurance benefit in both the types of policies.

In order to enjoy the cashless mediclaim benefit, one needs to identify which hospital falls under the insurance company's network. After submitting the claim form, that will undergo scrutiny, an approval/ rejection will be mailed accordingly. It is only after this that the TPA will sanction the specified amount for the treatment.


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    This article claims RJio was given a "Backdoor Entry" into the 4G Based Voice Routing. The peculiar aspect is without the Voice License, Rjio would have been a mere ISP. With the license, it is now a holistic communications service provider, with ability to exponentially scale the bouquet of products. The events indicate it was meticulously planned way before the auctions because the auctions were clear on the agenda: 4G for internet only.

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Why to Choose Mutual Funds Instead of Directly Investing Into Equities?

Whether to invest in equities or mutual funds is a question that has plagued every investor. As someone who needs the best value for his/her investment should you invest in equity directly or via mutual funds?

Let’s start by first understanding what these two terms ‘equities’ and ‘mutual funds’ stand for-

Equities- Equities generally represent ownership of a company. If you own any equity in a company, you are a part owner of the said company (depending on how much equity you own).

Mutual Funds – It is an investment scheme which is professionally managed by an asset management company. It pools together the resources of a group of people and invests their money in equities, debentures, bonds and other securities.

Why choose mutual funds over equities?

For people who’ve never invested in either stocks or mutual funds, it is hard to know which is better and where to start. Broadly speaking, if you are a novice investor, mutual funds are not only less risky but also way easier to manage. Here are some ways in which investing in mutual funds is beneficial as opposed to investing in equities -

Diversification

Mutual funds provide more diversification as compared to an individual equity stock. When you invest in equity, you are investing in a single company which has its inherent risk. For example, if you invest Rs.20,000 in buying equities of one company, you could face a total loss if that particular company performs poorly in the market.  

If you invest the same amount in mutual funds, it will be invested in different kinds of stocks and financial instruments, high-risk and low-risk both, so you might not face total loss even if one company does poorly.

Scale of Investment and Lower Costs

For an individual investor buying and selling stocks is a difficult task due to its high price. Thus, any gains made from stock appreciation are nullified if the overall trading costs are considered. Comparatively with mutual funds, as the money is pooled from a large number of investors, the cost per individual is lowered.  

Another advantage of mutual funds is that you don’t need to invest large sums of money. Buying equities for a profitable venture needs huge amounts of money, a minimum of few lakhs. With mutual funds, you can start with Rs.1000 and earn profits on that as well.

Convenience

Keeping an eye on the markets everyday is a time-consuming business, especially if you are investing as a side gig. There are people who spend their lives studying the market and still end up sustaining heavy losses. Though investing in mutual funds does not guarantee high returns, it is stress-free and needs less work as compared to investing in equities.

To sum it up

It is important to remember that mutual funds have their own disadvantages as well. Thus, as with any financial decision, educating yourself and understanding the suitability of all the available options is the ideal way to invest. 


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Are You Covered Under Employee Group Health Insurance? You May Still Need An Individual Health Insurance

Nutan Gupta

28 Jul 2017

Suhas is living a normal life; he is a middle-aged man who is working hard for his family. After quitting his previous job, Suhas had a week’s time to start working again at a different company. But unfortunately, before that could happen, he met with a serious road accident. Since he was no longer covered by the Employee Group Health Insurance that was offered to him by his previous company, Suhas’s family is struggling to pay the hospital bills. Things would have been different if Suhas got himself covered with an Individual Health Insurance.

In today's world, having a Health Insurance is a necessity to lead a stress-free life. The various benefits of having a Health Insurance can never be ignored; which includes medical cover, immediate assistance, specialist referrals, tax exemptions and many more. But, one needs to realize that there are many Health Insurances available in the market that are modified to suit everybody’s demands.

Companies offer a mandatory health cover for their employees in order to ensure their well-being. But as an individual, an 'Employee Group Health Insurance' would never provide you with the right kind of health cover.

Features

Group Employee Health Insurance

Individual / Family Cover

Protection when job lost

No

Yes

Protection while changing jobs

No

Yes

Coverage

May not be sufficient as per customer’s needs

Based on customer’s needs

Options to add features NCB, restoration benefits, critical illness

Not available

Available

Limited features like cap on room-rent, doesn’t provide cover for all family members

With restrictions

No restriction



Be Your Own Boss:
Instead of being an option, an Individual Health Insurance is a necessity for every individual. There are multiple reasons as to why an Employee Group Health Insurance is surpassed by the benefits of an Individual Health Insurance.

Independence:
Let us think of an employee who is covered by a group health insurance. And he decides to quit his current job. In such a situation, the employee will no longer be an insurance policy holder if he quits the job. He will anyways have to buy a new individual health insurance that will remain with him as long as he wants that.

Reduced Waiting Period:
In a majority of group health insurance plans, there is a minimum waiting period of 90 days within which no claims will be entertained. Having an individual health insurance exempts you from such delays and provides you health cover right from day 1 in case of an accident. Otherwise, there will be a 30 days waiting period.

Uncompromised Care:
The group covered by health insurance consists of different employees. These may differ according to their designation, the kind of work done or their pay-scale. As a result, the benefit that one gets out of this insurance policy might vary accordingly. By opting for an individual plan, one can insure a higher sum tailored as per his requirements. This ensures an uncompromised care to the insured.

No Claim Bonus:
It is obvious that an employee will receive no claim bonus out of the group health insurance if the policy remains unused until the renewal period. On the contrary, an individual plan provides a guaranteed no claim bonus for the same.

The Common Path
Both the policies require more or less the same number of documents to apply for the claims. The claim form, itemized bills, doctor's report, hospital discharge card and medical papers along with any other scan reports are the documents that one should procure while claiming for an insurance benefit in both the types of policies.

In order to enjoy the cashless mediclaim benefit, one needs to identify which hospital falls under the insurance company's network. After submitting the claim form, that will undergo scrutiny, an approval/ rejection will be mailed accordingly. It is only after this that the TPA will sanction the specified amount for the treatment.