Health insurance is one of the benefits you get while working in a good company. In case of medical issues, this cover can be quite useful to meet your expenses. However, it is important to remember that employee health insurance may not be enough. In many emergency situations, people have found out that the health cover offered by their companies was not adequate.
Employee health insurance Benefits
The health insurance provided to you by your employer is dependent on your employment status. In other words, the insurance policy covers you as long as you work with the company. If you resign from your job or if your employment is terminated, your insurance cover ceasesimmediately. This can be a problem while you are in-between jobs and you require medical attention. You would have to finance the total bill with your own money.
Limited coverage for dependents
As a family person, you want to ensure your dependents are covered by a medical insurance policy. However, it can come as a surprise that many employee insurance policies do not offer coverage for dependents. And even if they do, they may cover only spouse and children. If you have dependent parents, they may not be covered under the policy. This can be a major disadvantage since a good medical cover is an absolute must for senior citizens.
Many employees assume that health insurance is a mandatory feature in their employment contract. However, it is only a perk offered by the employer. It is within the employer’s rights to lower the insurance cover or even stop it at any time. With the cost of medical treatments skyrocketing these days, you would be left exposed to huge medical bills if your employer pulls the plug on the health cover exactly when you need it.
A health insurance document is not a quick read. There can be lots of big words written in tiny print. But if you were to read the document in its entirety, you would find out that there are many clauses when it comes to the total coverage. Two such clauses are:
Room rent clause:
Room rent can be a major expense when you are hospitalised. But your insurance policy may cover only a certain amount. For instance, if your room rent is capped at Rs 1,000 per day according to your policy, you would have to pay the remaining amount out of your own pocket.
A co-payment clause means that your insurer covers only a certain percentage of the total expenditure. So, if the insurer covers 60%, you would have to pay the remaining 40% by yourself. This means that your employer insurance policy helps you to only reduce your financial burden. It does pay for the entire medical expense. On the other hand, you can find other insurance policies that do not have co-payment clauses in them. This can help you avoid the financial burden of paying for your medical treatments.
Most employer health insurance covers do not have a large financial cover. You can find that this cover may not exceed even Rs 2 lakh per annum. For small medical problems, this amount might be adequate. But what about major illnesses or periods of long hospitalisation? In these situations, the expenses can be much greater than what the insurance covers.
It is always good to have an employer health insurance policy. But remember that it is not always enough. Ideally, you should take out another health insurance policy as an individual and ensure maximum coverage for you and your family. With this in place, you can treat your employer’s insurance cover as a secondary cover. This way, you can keep your family safe and secure in case of any medical emergencies.