Amit 45 lives with a family of five that includes his wife, two kids and dependent mother. They are all quite healthy except for age is catching up to his mother. He was of the view that separate health insurance is a waste as the corporate cover provided by his new employer is more than enough for his family health needs.
Let’s have a closer look at why is it not enough…
We have made a list of top 5 reasons why Amit should buy a separate cover.
#Reason 1: Because corporate cover might pose many limitations
The medical insurance by the employer might look fancy and tempting. Also, you might think the extra money that you would have otherwise paid as the premium for your personal insurance policy is well put to use for your next holiday. But are you looking close enough?
More than 75% of companies pose these two limitations via corporate covers.
Room Rent Limit - There is pre-defined limit on how much you will be entitled for occupying a room per day. Let’s say the room that you have picked in the hospital is Rs. 5000/day and the cover allows only Rs. 2000/day. Remaining Rs.3000 has to be paid from your pocket. Want a choice here? Well, move to affordable room which might mean sharing with other patients. Also, the room expenses do not cover the nurse and doctor fee during your stay, which usually ends up being a major chunk in the bill.
Co-Pay Clause - Some corporate policies cover only a portion of the total expenses, which means the remaining has to be borne by you. So if you are entitled for 60% of the total expenses, remaining 40% would come from your savings if you do not have a personal cover.
#Reason 2: Because you want to be covered even while you are out of job
We hope you are happily settled in your job and get to enjoy it until you find better opportunities. But have you thought what if lose your job in unforeseen circumstances? The time period till you find another one, you will not be medically covered. Any medical emergencies in this situation will be a double hit, emotionally and financially.
#Reason 3: Because you don’t want to spoil your post-retirement plans
This gets skipped most of the times. Just like your investment plans for retirement, this one is important as well. The day you retire, corporate cover would no longer be valid.
And buying a new insurance post 50 happens to be a pain. Why?
Most policies won’t cover you for pre-existing diseases and the premium would be higher. You would miss out on the benefits you could have got if you bought the cover in time.
Last thing you would want between you and your post-retirement plans is heavy dent on your savings due to medical bills. Spoiler Alert!
#Reason 4: Because who doesn’t like to save taxes
Did you know you could get tax benefit under 80D for your medical insurance? Well if you do, you would also know that you can save upto Rs. 25,000 for you and Rs 30,000 for senior citizens. Which means if you are also paying premiums for your senior citizen parents policy, you can save upto Rs.55000 in total. Isn’t it cool? You can enjoy tax benefits and can also be tension free about any medical needs. Double Mazaa!
#Reason 5: Because nothing is permanent
Your company may decide to change the terms and conditions of the policy. This might mean buying a personal medical insurance in a hurry without many benefits. It is better to plan right at the right time.
Amit looks fairly convinced now and he understands no matter how good the company policy is, he cannot treat it as a primary and only cover for him and his family. Are you?