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Do You Need Personal Health Insurance When You Have Corporate Cover?

You might already have corporate health insurance provided by your employer. But are you adequately covered against medical uncertainties? For more coverage, should you buy personal health insurance? 

In this case, how much insurance is enough? 

Well, there isn’t any appropriate figure to fit everyone. But, with this blog, we will analyse whether you would need personal health insurance apart from your corporate cover. 

Let’s begin by understanding the basics.

What is Corporate Health Insurance? 

Corporate health insurance is an umbrella cover. Here, your employer sponsors your health insurance by enlisting you (employee) for it. You can also extend the coverage to your family (dependants) by paying an additional premium. 

The premium of corporate health cover is lower than personal health insurance, and its coverage is limited.

What are the Limitations of Your Corporate Cover? 

  • Unlike your personal health insurance plan, you cannot customise your cover to match your medical needs. You need to accept the coverage as it is. 
  • Your corporate health cover becomes inactive once you leave your job. You cannot avail no-claim bonus or cumulative-bonus benefit under a corporate cover.
  • The limit of permissible room rent is pre-defined. This is also called ‘sub-limit’ on room tariff. If the tariff for your selected room is higher than what’s admissible under your cover, you will have to pay it out of your pocket. 
  • Your corporate coverage has a limit of ₹4 to ₹5 lacs, which may not be adequate to cover you in case of serious accidents or illnesses. Also, for Covid-19 treatment, you might need a more comprehensive cover for covering multiple hospitalisation expenses. 

Now, you might realise most of these limitations only at the time of claim. Thus, you may end up inadequately covering yourself during the time of a medical emergency. 

Here’s where personal health insurance can come to your rescue. 

How can Personal Health Insurance Help?

Having personal health insurance in addition to your corporate insurance can make your insurance coverage comprehensive. You will have the freedom of customising the policy to your medical needs, no claim benefits, lifetime renewability, and adequate coverage in case of serious illnesses.

These are some of the benefits and are especially relevant in times like today. You need to know what a plan offers before making a choice. 

This blog puts forth specific questions you need to ask before buying personal health insurance.

How is this Relevant during Covid-19?

You might have heard about people incurring huge out-of-pocket expenses for their Covid-19 treatment. For Covid-19 treatment, your corporate coverage of ₹4 to ₹5 lacs might account for not even 50% of your hospitalisation expenses. Therefore, having personal health insurance in addition to your corporate cover can provide you with a better financial cushion. 

Read this blog to know why having personal health insurance is the need of the hour during Covid-19.

With Covid-19, many medical uncertainties have entered our lives. Therefore, only relying on corporate health insurance might not be enough. Having personal health insurance, as an addition, can help you ride the waves of medical uncertainty firmly.


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