5. I have a corporate policy do I still need personal insurance?

Ans:

Health insurance is a safety net for the financial well-being of an individual or a family. With medical inflation close to 15 per cent year on year, it has become imperative to opt for a comprehensive health insurance plan for the entire family so that the hospitalisation expenses are taken care of.

A comprehensive health insurance plan is an indemnity plan and hence pays for all expenses incurred during hospitalisation. It typically covers all hospitalisation expenses related to an illness, injury or an accident.

So, from the time of hospitalisation, the cost of an ambulance, room rent, medicines, diagnostic tests, surgery/ implant or any other treatment procedures, etc. would be covered under in-patient hospitalisation. Additionally, pre- and post-hospitalisation expenses for diagnosis and follow up treatments, AYUSH treatment, domiciliary, organ donation, etc. treatments and procedures are usually included.

There are other value-added benefits of comprehensive health insurance plans as well; such as free annual medical check-ups, sum insured restoration benefits, maternity and other covers. You can further enhance the base coverage by purchasing optional add-ons like personal accident and critical illness coverage.

Ans: Top-up policies play the role of an emergency backup policy, when their main health insurance policy cover reaches the threshold of the sum insured. It offers a higher coverage at relatively lesser premium as compared to a base policy with a higher sum insured.

Ever increasing medical inflation and ongoing deadly infection makes it essential to not only have health insurance but also insurance cover with an adequate sum insured.

The need of a specified sum insured can be optimised by breaking it into two policies. One basic and another top up totalling up to sum insured required by you. This option is recommended rather than having a single policy with higher sum insured.

Ans: Having a corporate mediclaim policy is undoubtedly beneficial, but it may not cover all your needs adequately. Here are some reasons why you might still consider purchasing personal insurance for yourself and your family, despite having a corporate mediclaim policy:

1. Coverage Limitations: Corporate policies often come with coverage limits, and these may not be sufficient for your family's needs, especially in case of severe medical emergencies or prolonged treatments.

2. Job Change: If you change your job or your employer changes the insurance provider, there could be a gap in coverage, leaving you and your family uninsured temporarily.

3. Portability: Personal health insurance policies are usually portable, meaning you can carry them forward even if you switch jobs or companies, ensuring continuity of coverage.

4. Tailored Coverage: Personal insurance allows you to tailor coverage according to your specific needs, including adding riders for critical illness, maternity benefits, or other specialised treatments which may not be covered under a corporate policy.

5. Family Coverage: While corporate policies might extend coverage to your family, the coverage amount might be inadequate, and having a separate family floater policy ensures comprehensive coverage for all members.

6. Pre-existing Conditions: Corporate policies may have restrictions on coverage for pre-existing conditions, whereas personal policies often offer coverage after a waiting period.

7. Comprehensive Coverage: Personal policies often offer a broader range of coverage options, including outpatient expenses, alternative treatments, and more extensive network hospitals, which may not be available under corporate policies.

8. Continuity of Coverage: In case of job loss or retirement, personal insurance ensures continuity of coverage without any gaps.

9. Tax Benefits: Personal health insurance premiums are eligible for tax deductions under Section 80D of the Income Tax Act, providing additional financial benefits.

10. Control and Flexibility: Personal insurance policies offer greater control and flexibility in choosing coverage options, network hospitals, and policy terms compared to corporate policies, which are generally standardized for all employees.

While having a corporate mediclaim policy is undoubtedly advantageous, it's essential to assess your family's healthcare needs comprehensively and consider supplementing it with personal insurance to ensure adequate coverage and financial protection in the long term.

Ans: While having health insurance coverage from your company is beneficial, it's essential to evaluate its adequacy and portability. Personal health insurance ensures continuity of coverage during job transitions and provides customized benefits tailored to your family's needs.

Additionally, personal health insurance offers flexibility in choosing hospitals and treatments, ensuring comprehensive coverage for unforeseen medical expenses.

Therefore, considering the uncertainties of job security and the importance of comprehensive health coverage, it's advisable to supplement your company-provided health insurance with a personal policy for enhanced financial protection.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Hello;

It would be better to have a personal healthcare cover apart from the corporate health insurance.

Because you are nearing 40 when typically lifestyle diseases begin, may god forbid.

Also if you change your job, during the intermittent phase, before joining new responsibility the personal healthcare plan comes in handy, if required.

In case you or anyone in your family has a pre-existing disease the waiting period of 2-4 years need to be factored in, before these can be covered.

My suggestion is that buying a personal healthcare cover would be a better option rather then enhancing sum assured in the corporate health insurance.

Do a thorough study or seek help of an insurance advisor before you sign-up.

Best wishes;