How to switch from group medical to individual health plan

💡An employee health insurance policy is offered by organisations to their employees. The employers ensure that this insurance plan provides numerous health benefits to the individuals covered under the plan. One of the most interesting factors of this type of insurance plan is that the premium cost is borne by the organisation. The employees are divided into groups, and the plan is chosen for them according to the group medical statistics. The employees find this as an attractive incentive while applying for a job and are eager to learn about the benefits attached to the policy that they can avail.

Even though salaried employees favour such plans, corporate insurance does have some limitations. Flexibility, duration of the policy, and amount of coverage are the factors that are not very favourable in the long term. Most employees wonder what would happen to their corporate insurance once they leave the job. This is the time to be wise and understand that you can choose to avail the portability option. If you decide to leave a job where you were covered under corporate insurance, you can transfer that policy to an individual health cover and continue to run the policy on your own.

What Are Some Long-Term Disadvantages of Corporate Health Insurance Plans? 👀

While evaluating a policy, it is crucial to understand both the advantages and disadvantages attached to it.

🖊  Given below are some major limitations of corporate insurance plans:

  • The policy is controlled and offered by the employee’s organisation, which leaves no control of the policy with the employee.
  • As per the basic understanding, the group medical cover will discontinue when you, an employee, decide to part ways with the company. However, at this stage, you can choose to port your corporate health insurance to individual insurance and enjoy prolonged benefits.
  • There is no difference between the premium cost charged to healthy people and high-health risk people. On the other hand, under individual plans, the premium is low for those who are disease-free.
  • In case you are looking for any specific coverage, you need to buy an additional cover.

Want to Switch from Group Health Insurance to an Individual Plan?

💭 If you’re thinking of porting your corporate insurance policy, keep the following in mind:

  • Have a Consultation with your Current Insurer

As per the suggestion of the IRDA guidelines, you can continue with an individual plan with the same insurance company after completing some basic formalities.

  • Understand the Time for Porting Clearly

To successfully port your insurance policy, you must inform your existing insurer at least 45 days before the policy’s expiration or renewal.

  • Optional Requirement of a Pre-Medical Checkup

Although it is not mandatory, some insurance providers may ask employees to undergo a pre-medical checkup before porting their policy.

  • Consider the Waiting Period for Porting

Generally, there are no criteria for undergoing a waiting period before porting. However, the conditions may vary and need to be checked. If the policy mentions that a waiting period exists, you need to serve the waiting period mandatorily. ⏰

Process of Portability of Corporate Medical Insurance to an Individual Cover 📃

Below is the step-by-step process you need to follow for porting from corporate insurance to an individual policy.

  1. Selecting the Policy after Analysing Your Needs

Choosing the right plan based on your requirements is of utmost importance. Consider the factors such as policy coverage, benefits, exclusions, terms and conditions, etc. The premium cost also needs to be considered and should be under the affordable limit. 💯

  1. Completing the Paperwork

After the selection of a policy, fill out the form for porting. The following details need to be provided other than the details of the existing policy – medical history, age, income proof, claim history, etc.

  1. Submit the Documents

It is important to note that the submission of the policy documents should happen at least 45 days before the expiration or renewal of the policy.

  1. Payment of the Premium

Once the submitted documents are approved by the insurer, a fresh underwriting stating the terms and conditions is prepared. It usually takes up to 15 days, after which the premium amount can be paid. 💰

Benefits of Porting from Corporate Health insurance to an Individual Plan ✔

Porting your corporate health cover will add several benefits to your new policy. They are as follows:

  • Comprehensive Coverage

Individual health insurance has the option of customisation. You can choose to curate your plan as per your health requirements. It also offers more benefits than a corporate insurance cover.

  • Increase in Sum Assured Value

There is an option to increase the sum assured value while porting from corporate insurance to an individual plan. It may be possible that you, the insured, may have to oblige to the rules of the insurer to avail of this benefit.

  • Credit Obtained for the Waiting Period

Since the credit obtained by the policyholder for obliging to the waiting period according to the pre-existing conditions gets carried forward to the new plan, the policyholder can enjoy maximum benefits.

Conclusion

For all those who opt out of their job, porting from group medical health insurance to individual plans is a much sought-after and preferred option. This allows them to enjoy all the benefits and ensures financial and medical security. There are several insurance plans at an affordable cost, providing comprehensive coverage, which you can analyse and avail to become secure! 🤝🏻

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