Difference Between Corporate Health Insurance and Personal Health Insurance

A corporate health insurance plan is a type of health insurance that an organisation provides to its employees. A personal health insurance plan, on the other hand, provides coverage for healthcare expenses for a single individual alone. 

Corporate health insurance provides coverage for medical expenses in connection with an illness or an accident. Some corporate health insurance plans allow you to extend the coverage to your family by paying an additional premium out of your own pocket. 

Unlike corporate health insurance, you cannot extend the coverage to your family in personal health insurance. However, a personal health insurance plan offers more comprehensive coverage compared to a corporate insurance plan. 

Corporate Health Insurance Plans  VS Individual Health Insurance Plans | Bajaj Markets

Comparison Between Corporate Health Insurance VS Personal Health Insurance

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The importance of having a health insurance plan with comprehensive coverage for yourself and your loved ones cannot be sufficiently stressed. While purchasing health insurance, you would come across various types of policies. Two of the most popular types of health insurance plans are corporate health insurance plans and individual health insurance plans. Both of these plans may offer coverage of a similar nature, but the eligibility for each of these plans is different. In this article, we will understand the difference between corporate health insurance vs individual health insurance. Let’s get started.

What is Corporate Health Insurance & How Does It Work?

The employer-sponsored coverage provided to the employees of a company is referred to as corporate health insurance. The employer or owner of a company may purchase a health insurance plan to cover himself (or herself) along with their employees. 

Ordinarily, corporate health insurance plans are designed to provide coverage to employers and enlisted employees alone. That being said, employees have the option to extend their coverage to their dependents as well by paying an additional premium amount out of their own pockets. With access to such a policy, it is possible to get insurance coverage for medical treatment as well as hospitalisation if you suffer from an accident or illness.

What is Individual Health Insurance & How Does It Work?

Unlike corporate health insurance plans that are designed to cater to several people, individual health insurance plans are designed to provide insurance coverage to a single individual for medical expenses. As an insured individual under this plan, you are entitled to benefit from cashless hospitalisation as well as multiple add-ons such that you can enhance the extent of coverage provided to you. 

Under a personal health insurance plan, the entire sum insured is meant to provide coverage for one individual alone. A dependent cannot be added to such a plan.

Corporate Health Insurance vs Individual Health Insurance

Now, let us understand the differences between corporate health insurance and individual health insurance plans:

Area of Consideration 

Individual Health Insurance Plan

Corporate Health Insurance Plan

Premium Cost

The premium cost for individual health insurance plans might be slightly high. However, the policy offers extensive coverage, which proves to be value for money invested.

The premium cost for corporate health insurance is low. However, the coverage it provides is limited.

Customisation

Individual health insurance can be customised to fulfil your medical needs.

In the case of corporate health insurance, you need to accept whatever coverage your employer provides. The policy is not aligned to fulfil your and your family’s medical needs.

No Claim Bonus (NCB)

You can get the NCB benefits on your individual health insurance plan.

Some corporate health insurance plans do not offer NCB benefits to the insured.

Job Limitation

Unlike corporate health insurance, personal health insurance plans do not expire after you leave the job.

Corporate health insurance plans become invalid after you leave the company.

Factors Influencing Health Insurance Plans

Listed below are some of the factors that influence health insurance plans that are made available to you:

  • Cost

The cost applicable to a health insurance plan depends upon a number of factors ranging from the kind of health insurance policy selected and how extensive it is in its coverage to the age at which you get the said policy. Younger health insurance policyholders get to take advantage of lower health insurance premiums as they are less likely to experience health crises. The cost tethered to a health insurance plan also depends upon the add-ons opted and how extensive they are. If you happen to stay in a metropolitan city associated with higher healthcare costs, the insurance policy you get may also be more expensive.

  • Choice

If you happen to be employed by a company that offers employees the right to take advantage of its corporate health insurance plan, you can get the said plan. That being said, you should consider supplementing it with an individual or family floater health insurance plan for additional coverage that can be customised to suit you and your family’s medical needs. If you are unemployed or your employer doesn’t have a corporate health insurance plan available, you will have to get a health insurance plan on your own.

  • Benefits

Health insurance plans provide a string of benefits that vary depending on the kind of plan opted for. Individuals who opt for comprehensive plans are entitled to a more extensive coverage in contrast to those that get basic plans. It is possible to get add-ons that provide coverage for specific expenses that may arise when you have a medical crisis. These add-ons include a death benefit and accidental death cover among others.

  • Job

The kind of job you are employed under can impact the health insurance premium you are charged. The more risks your job requires you to take, the higher the insurance premium applicable to you. In order to understand this better let us compare health insurance premiums paid by a pilot vs a preschool teacher. Since the pilot has a riskier job, their health insurance premium will amount to more than that of the preschool teacher.

 

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Conclusion

You must have understood the difference between corporate health insurance vs individual health insurance plans. If you have access to a corporate health insurance plan as an employee of a company that offers the same, you must take advantage of it. That being said, you must not rely on said plan’s coverage alone to tide you and your family over in case you fall ill as it is limited in its scope. Personal health insurance (or a family floater plan in case you have a young family) is worth investing in as its coverage can be customised and the scope of this coverage is more extensive. To benefit from such a plan, visit the Bajaj Markets website and learn more about the merits associated with purchasing such a plan. 

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FAQs on Corporate Health Insurance vs Individual Health Insurance

  • ✔️ If I quit the company that provides me with corporate health insurance, will I continue to be covered under its insurance plan?

    No, once you quit working for a company that provides you with corporate health insurance, your health insurance policy will be terminated.  

  • ✔️Can I rely on my corporate health insurance plan alone or should I purchase an individual health insurance policy alongside?

    You should not rely on your corporate health insurance plan alone and should ideally purchase an individual health insurance policy alongside it. This is owed to the fact that corporate health insurance plans provide limited coverage and cannot be used extensively to deal with an array of medical ailments.

  • ✔️Is it worth relying on corporate health insurance in the long run?

    No, it is not worth relying on corporate health insurance in the long run. This is due to a number of reasons including the fact that premiums applicable to health insurance plans rise as you age and if you choose to purchase an individual health insurance plan only later on in life, you will be spending more on the premium for such a plan.
    Further, if, by this point in time, you have pre-existing health conditions, they may not be covered under the policy. Else, you may need to complete a waiting period which may be unfeasible if you have serious health conditions that require constant medical care. There also happens to be the fact that corporate health insurance plans do not provide you with coverage after you retire which is when you really need health insurance as you are older and may have more pressing health concerns.

     

  • ✔️Can my dependents be covered under a corporate health insurance plan or an individual health insurance plan?

    Yes, your dependents can be covered under a corporate health insurance plan, however, the coverage provided is limited in its scope and you will need to bear the additional cost associated with providing this coverage. In contrast, individual health insurance plans cannot have dependents added to them as they are meant for one person alone as is suggested by the name of the plan. 

  • ✔️What is a no-claim bonus and is it applicable to both, corporate and individual health insurance plans?

    The term ‘no-claim bonus’ refers to the reward provided by an insurance provider to the policyholder for not making a claim during the policy period. While this reward is available under an individual health insurance plan, it isn’t ordinarily included under a corporate health insurance plan. Always read the fine print associated with a health insurance policy such that you are aware of the terms and conditions that apply to it.