If you work for a medium or large sized firm, chances are that you have some Health Insurance provided by your employer.
The best part about this is that it ticks the box for our sense of security, we feel we're covered for hospital & medical expenses & that too at no cost or at best a minimal contribution as employees.
The facts though may be a little different. Read on to understand why.
Most employer provided covers are in the range of INR 3 to 4 lac & cover parents, spouse & kids. This is an extremely insufficient cover for even 1 person, let alone the whole family given the changing nature & costs of hospitalisation.
No matter how many years you go without any claims you get no bonus & your cover remains at 3 to 4 lac. With escalating medical costs this will be a redundant amount in a few years, if it isn't already.
In most cases you have to share the hospital bill by paying 20% to 30% from your pocket, this is called a co-pay.
If you use up the 3 or 4 lac once in the year, you won't have any more Health Insurance for the rest of the year. So if more than 1 person in the family falls ill or someone falls ill more than once, you have to pay from your pocket.
If you leave your job, your Health Insurance and that of your family’s is gone.
When you retire you have no Health Insurance any more, plus at that age not many insurance companies will give you new Health Insurance, especially if you have some health condition. Moreover your spouse’s Health Insurance is gone too.
One very important optional add-on cover a standalone Health Insurance also gives you is that of a Critical Illness Indemnity Insurance which an employer cover does not.
So is your employer provided Health Insurance no good? No, it is a definite benefit. But it is insufficient & lacks far-sightedness. You need to supplement it with a comprehensive standalone Health Insurance cover for yourself and your family, as early as possible, while you're still healthy and young.
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