Is your employer sponsored health cover enough?

Written by: Deepak Yohannan
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Is your employer sponsored health cover enough?
Most of the young executives working in established organizations do not feel the need of buying a separate health plan for themselves and their family.

Reason-their employers have already provided a free health cover in their salary package so the need to buy another plan is nonexistent. It actually seems to be a complete waste of money, isn't it?I guess a majority of people enjoying the benefits of employer funded health cover agree to this statement. Why would they feel the need to buy a health cover themselves when their employers have already provided it for them?

This is an ambiguous topic and needs a look at the bigger picture. Employer funded health insurance is definitely a blessing but is it sufficient? Generally, the amount of cover which your employer provides is fairly conservative, say around 2-5 Lakhs.

But, this amount is not sufficient to provide for your medical bills and you need additional cover. Just imagine being treated for an emergency like cancer where your bills aggregate to about 10 Lakhs while your employer provides for a maximum of 5 Lakhs. Who will take care of the other 5 lakhs? You? How would an average salaried person manage such an amount?

Another area of concern is a layover. You could enjoy your health cover provided by your employer only if you remain in active employment throughout your life. Is it guaranteed? In the current economy, attrition and layoffs are pretty common. So, who would take care of Health Insurance? You. You would then have to buy a plan to secure yourself and your family. So, depending completely on your employer for your health insurance protection is not prudent.

Lastly, your employer funded health cover ceases automatically when you retire. After retirement you would be entitled to pensions but your health cover needs would have to be met by you. At that time availing an all-inclusive cover is impossible. If you buy a plan that time, most of the diseases ailing you would be excluded from the cover and the premium would also be high.

Paying the higher premium when your source of income disappears is burdensome especially when you always enjoyed your health cover free of cost (courtesy of your employer).

Hence, to sum up, though the cover provided by your employer is definitely tempting, the wise thing would be to take out a health insurance plan yourself to secure a healthy financial future. Your individual plan would not only supplement your total coverage amount, it would also help in case of job layovers.

If you buy a plan which is renewable throughout your lifetime, your cover would continue even after you retire. So, buy a health plan in addition to your employer sponsored cover and ensure a stable financial future even in those rainy days.

The author is the CEO of MyInsuranceClub.com, an online insurance price & features comparison portal.

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Read more about: insurance
Story first published: Thursday, April 18, 2013, 9:38 [IST]
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