Most companies offer medical benefits to their employees in the form of health plans. Such insurance policies are beneficial to both the employer and the employee.
However, not all organizations offer health plans with maximum benefits. While some may provide a high coverage, the chances of losing the health benefits are high if you quit your job. The question that arises during such instances is whether your company mediclaim policy is enough to cover you in case of medical emergencies?
You may take the following four aspects into consideration while deciding whether to invest in an additional policy or to stick to your existing company policy.
- Restrictions on cover or limits
There are numerous cases where organizations cut costs and impose restrictions on covers. Such restrictions may be imposed at any time, which may have a great impact on your healthcare needs.
Another important aspect to take into consideration is the level of coverage. Your medical expenses may be greater than the insured amount. You may, therefore, have to pay the additional sum out of your pocket, which may result in a huge strain on your finances.
- Your organization may change the existing policy terms and conditions
Employers negotiate terms, such as a number of illnesses covered, the inclusion of dependents, and other such aspects, on a frequent basis. This indicates that you may be left uncovered and may have to bear expenses in case your company medical insurance does not cover your parents or the illness you are suffering from.
Your organization may also hike the premium cost citing reasons such as higher number of claims or increasing medical costs, besides others. This is a huge disadvantage as the premiums increase while the level of cover remains the same.
- Condition upon retirement
Post retirement from your company, you are not entitled to the benefits of your company’s health plan. Though you purchase a health insurance policy then, the cost of premium will be higher as you will soon become a senior citizen. Besides, you may have to undergo numerous medical tests. A wise decision would be to invest in a mediclaim plan independently as early as possible. At a younger age, you may avail of numerous benefits such as low premiums, no medical examinations, and no exclusions, besides others. You may also enjoy the benefit of no claim bonus and discounts.
- Tax benefits
According to Section 80D of the Income Tax Act 1961, you may claim deduction up to INR 25,000 on premiums paid towards the mediclaim policy for family. This includes cover for your spouse, dependent children, and yourself. You may also seek a higher limit of INR 30,000 in case you or your spouse are a senior citizen, i.e. 60 years and above.
A health insurance policy is supposed to provide maximum coverage when you need it the most. The aforementioned points, however, highlight the necessity to invest in an independent health plan. Relying on your company’s policy will not provide the safety net that you seek in the long run. You may analyze these factors and make the right choice.