Supplement employer health plan with a personal cover

Employer-sponsored health insurance is a critical element of the benefits package provided to employees. When the coverage is comprehensive and the sum insured is sufficient, it provides protection, and hence peace of mind, to the employee and his family. A recent study by Plum, a health insurance platform, which examined the health insurance policies offered by over 2,500 employers, revealed several gaps in the coverage they provide.

Employer-sponsored health insurance offers multiple advantages to employees. One, the burden of paying premiums is on the organisation.

“The employer often covers the premiums for the employee, the spouse, and children, which is a valuable benefit for employees,” says Vishal Dhawan, chief financial planner, Plan Ahead Wealth Advisors.

Two, people who have pre-existing disease are often denied access to a retail health insurance policy. “In an employer-sponsored group plan, there is no health checkup, medical underwriting, or requirement to disclose pre-existing conditions. Therefore, employees get insured regardless of their health condition,” says Kapil Mehta, co-founder & chief executive officer (CEO), SecureNow.

Three, employer-sponsored plans provide day-one coverage for pre-existing diseases (PEDs). “Individual plans typically have a waiting period for PEDs before coverage begins,” Says Abhished Poddar, co-founder and CEO, Plum. This waiting period can range from two years to four years in these policies.

Four, in many cases, employer-sponsored plans also cover parents. Since elderly parents tend to have several pre-existing conditions, they find it difficult to buy a retail health insurance cover. Their child’s employer-provided cover is the only health insurance they have.

And five, employer-sponsored plans often include maternity benefits, which may not be covered by personal health insurance plans.