Why Corporate Health Insurance coverage is Insufficient for Company Employees
The Requirement for Personal Health Insurance
The fast-paced and unpredictable world of today makes health extremely vital. Most companies offer corporate health insurance as part of employees’ benefits packages, but this alone is usually not sufficient. Corporate health insurance schemes primarily provide generic medical insurance, but they may not provide the specific requirements of employees and their family members. When you resign from your current company and join a new one, there is often a gap in health coverage. Most company health plans will not cover you during the transition until your new employer adds you to their insurance plan, which can take time. This period without coverage poses a significant risk, as you may be responsible for any medical costs incurred during this gap.
This is the reason why individuals should have personal health insurance covering all family members. Here are some reasons why corporate health insurance alone is insufficient and why personal health insurance is necessary.
Restricted Scope of Coverage
Employment Dependency
Corporate health insurance is job-dependent. If an employee resigns from his or her job, retires, or gets laid off from employment, he or she loses his or her health insurance. This leaves a huge gap in protection, particularly during periods when it takes time to secure a new job or obtain alternative protection. Personal health insurance, on the other hand, is not job-dependent and provides uninterrupted coverage regardless of what happens to jobs, providing peace of mind and financial protection.
Inadequate Sum Insured
Corporate health insurance policies tend to have a pre-determined amount covered. This may be inadequate to provide for high medical expenses, particularly for long hospital stays or critical diseases. Medical inflation and the hike in healthcare prices can quickly deplete the coverage provided by corporate policies. Personal health insurance allows one to select a higher sum based on what his or her family requires, so that there is adequate financial protection in the event of a crisis.
Absence of Personalization
Corporate health insurance policies are standardized and might not suit the personal health requirements of an employee or his family. For example, if one of his family members has a chronic illness or requires special therapies, the corporate policy may not cover such expenses. Personal health insurance provides cover that can be tailored to address individual needs, such as serious illnesses, pregnancy, or alternative therapy, so that all healthcare requirements are covered.
No Post-Retirement Coverage
As workers age and approach retirement, their healthcare needs become more extensive. Corporate health insurance, however, tends to terminate when they retire, so that the retirees must fend for themselves when they must pay for expensive medical care. Personal health insurance provides lifetime coverage, and individuals and their families are assured protection even after retirement. This is particularly necessary in regions where public healthcare centers are inadequate or overwhelmed.
Exclusion of Specific Treatments
Corporate health insurance policies tend to exclude certain treatments, like dental treatment, vision treatment, or mental treatment. Such exclusions may deny employees and their families the assistance they need for significant healthcare needs. Personal health insurance policies can cover such treatments, providing end-to-end protection for the family.
Limited Network Hospitals
Corporate health insurance policies restrict employees to a particular group of hospitals and health providers. Although this may be convenient in some instances, it may be inconvenient if your hospital or physician is not part of the group. Personal health insurance policies have a greater number of hospitals and providers, and individuals can select the best healthcare services according to their needs.
Buy a Health Insurance coverage for all your family members under one plan
No Coverage for Non-Work-Related Accidents
Corporate health insurance policies may not cover accidents that occur outside the workplace or on leave. For instance, accidents on vacation or injuries at home may not be covered. Personal health insurance covers all medical emergencies in full, irrespective of when and where they occur.
Financial Burden on Family Members
Without proper health insurance, medical emergencies become a financial burden on family members. Corporate health insurance may not cover all family members or may provide limited support to dependents. Personal health insurance covers all family members, reducing the financial burden during medical emergencies.
Peace of Mind
Lastly, personal health insurance provides peace of mind. With the assurance that you and your family are fully covered for any medical conditions, you can concentrate on your work and personal life without worrying about healthcare expenses. Corporate health insurance, although useful, cannot provide the same degree of security and personalization.
Corporate health insurance is a fine employee perk, but it does not cover them and their families. Corporate plans are restrictive, for instance, having restricted coverage, being employment-based, and not being tailored, which means that there is a necessity for personal health insurance. By having a comprehensive personal health insurance policy that can cover all members of their family, individuals can ensure that they are prepared for any medical crisis irrespective of their employment status. In a life where health issues may occur at any moment, personal health insurance is not an option—it is a necessity.