Corporate Health Insurance vs Personal Health Insurance | Bajaj MARKETS

Difference Between Corporate Health Insurance and Personal Health Insurance

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30 Oct 2021
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Introduction to Health Insurance

The importance of availing a health insurance plan that provides comprehensive coverage cannot be sufficiently stressed. This happens to be evident from the fact that a fair number of organisations in the country provide their employees with the opportunity to take advantage of corporate health insurance plans as a means of enticing them. Individuals who happen to work for companies that don’t offer corporate health insurance are often recommended to avail of personal health insurance plans from reliable insurance providers.

 

If you do happen to have access to corporate health insurance you should take advantage of the same but should not rely on it entirely to cover your medical expenses as well as those of your family’s. This isn’t to say that corporate health insurance plans aren’t less useful, however outright reliance on the same should be avoided.

What is Corporate Health Insurance?

Employer-sponsor coverage provided to 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 his 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 avail of coverage for treatment as well as hospitalisation in the event that you suffer from an accident or illness.

What is Individual Health Insurance?

Unlike corporate health insurance plans that are designed to cater to several people, individual health insurance plans are designed to provide coverage to a single individual against a number of illnesses. As an insured individual under this plan, you are entitled to avail of 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 assured 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

Carefully examine the table mentioned below to 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 premiums 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, as well.

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 yours and your family’s medical needs.

No Claim Bonus (NCB)

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

Some corporate health insurance does 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.

Listed below are some of the factors that impact and 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 avail of 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 availed of and how extensive they are. If you happen to stay in a metropolitan city associated with higher healthcare costs, the insurance policy you avail of 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 avail of 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 avail of a health insurance plan on your own. This lack of choice should not dissuade you as there exist a wide range of health insurance policies in the market today that can be customised with add-ons and that cater to a wide range of medical requirements. This includes plans that are customised to meet the needs of senior citizens as well as those that are meant for individuals with serious illnesses.

  • 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 avail of more extensive coverage in contrast to those that avail of basic plans. It is possible to avail of 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 is the insurance premium applicable to you. In order to understand this better let us compare the premiums paid by a pilot vs a preschool teacher. Since the pilot has a riskier job, his health insurance premium will amount to more than that of the preschool teacher.

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 avail of such a plan, visit the Bajaj MARKETS website and learn more about the merits associated with purchasing such a plan.  

Best Health Insurance Plans Available at Bajaj MARKETS

Frequently Asked Questions

  • ✔️ 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 only purchase an individual health insurance plan later on in life you will be spending more money availing of this 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.