Health insurance is an important part of financial planning. It helps protect you and your family from the high cost of medical treatment. Two of the most common health insurance policies are individual health insurance and corporate health insurance. Each has its benefits, and choosing the right one depends on your needs.
Let’s find the differences between the two and how to decide which is right for you.
What is individual health insurance?
An individual health insurance policy is a type of policy that you buy for yourself or your family. It is not linked to your job. You can choose the insurance provider, the type of cover, the sum insured and the benefits that best suit your needs.
This kind of insurance is flexible. For example, you can continue your policy even if you change jobs or become self-employed. Some policies also offer add-ons like maternity cover, critical illness benefits or OPD (Outpatient Department) expenses.
What is corporate health insurance?
Corporate health insurance is offered by your employer as part of your employee benefits. It usually covers you, and sometimes your dependents, like your spouse or children. The main benefit of corporate insurance is that it comes at no extra cost to you, or at a very low cost. Employers often pay the full premium or share it with employees.
However, this type of policy only lasts as long as you work for the company. If you leave your job, the coverage usually ends, unless you are given the option to convert it into an individual plan (which might be more expensive).
Corporate vs individual health insurance: Which is better?
Both individual and corporate health insurance have their advantages. Here’s a comparison table:
|
Feature
|
Individual health insurance
|
Corporate health insurance
|
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Who pays
|
You
|
Employer or partly by employer
|
|
Flexibility
|
High – you can choose features and sum
|
Low – plan is set by employer
|
|
Portability
|
Yes – you can keep it even if you change jobs
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No – cover ends if you leave the company
|
|
Coverage
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Customisable, often more comprehensive
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Basic cover, may not include add-ons
|
|
Medical tests
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Often required
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Usually not required
|
|
continuity
|
Long-term
|
Temporary, linked to employment
|
How to choose the right health insurance policy?
Here are a few tips:
- Assess your needs: Do you have dependents? Are there any existing medical conditions?
- Check the sum insured: Make sure it covers hospital costs in your area.
- Look at add-ons: Features like maternity, dental or critical illness cover can be helpful.
- Consider portability: An individual plan stays with you throughout your life.
- Think long-term: Corporate policies can change or end, but an individual policy is under your control.
Conclusion
A corporate health policy offered by your employer may cover your family members but may not be sufficient to deal with high medical costs. Also, you lose the cover once you retire or change jobs. On the other hand, a regular health insurance policy will offer you a range of coverage amounts and provide additional advantages.
The premium that you pay towards your health insurance policy is also tax-deductible under Section 80D of the Income Tax Act. So, you can be stress-free, financially protected and save more on your earnings.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It is not intended as a substitute for professional advice, diagnosis, or treatment. Please consult your general physician or another certified medical professional for any questions regarding a medical condition. Relying on any information provided in this blog is solely at your own risk, and ICICI Lombard is not responsible for any effects or consequences resulting from the use of the information shared.