In India, group health insurance is a common benefit offered by employers, providing medical coverage to employees and, in some cases, their family members. This type of insurance comes with standardised features and is either fully or partially paid for by the employer. However, when you leave your job or change employers, that coverage usually ends. That’s where individual health insurance becomes important, as it lets you enjoy continuity of coverage regardless of your employment status.

It offers medical coverage tailored to your specific needs, including options for add-ons like maternity cover, critical illness or family floater benefits. Let’s understand how to smoothly shift from a group health insurance plan to an individual health insurance, what factors you need to consider and why it might be beneficial in the long run.

Difference between group and individual health insurance

Here are some key differences between these two policies:

Coverage differences

• Group health insurance usually offers standardised benefits across employees. You might not have a say in choosing add-ons or coverage limits.
• With an individual health insurance policy, you get to customise your policy based on your needs and budget.

Premium costs

• Group plans are often free or subsidised by employers.
• Individual plans will require you to pay the full premium amount. Compare policies to find affordable options.

Policy limits and inclusions

• Check if the sum insured is sufficient for your lifestyle and family medical history.
• Look at co-pay clauses, sub-limits and exclusions before finalising a policy.

Family coverage

• Group insurance may cover your spouse, children or parents.
• Decide if you want similar coverage in your individual health insurance plan, or if separate policies are needed.

Process of buying an individual health insurance

Here’s a step-by-step guide to help you:

Choose the right policy

• Research and shortlist individual health insurance plans that fit your needs.
• Compare premiums, benefits, waiting periods and network hospitals.

Inform your insurer

• Notify the existing insurer (the one offering the group plan) and the new insurer (for individual cover) about the switch.

Issuance process begins

• The new insurer will review your application. Medical check-ups may be required depending on age and health condition.

Policy issuance

• Once all documentation is complete and premium is paid, your individual health insurance policy is issued.

Benefits of having an individual health insurance

You might wonder why you should have an individual health insurance when your group health insurance already gives you coverage. Here are the major benefits:

Continuity of coverage

• Once you leave your job, your group cover ends. Having an individual health insurance ensures you don’t face a gap in your health coverage.

Customisation

• With individual health insurance, you can pick riders like maternity cover, critical illness cover, etc., which group plans may not offer.

Lifelong renewability

• Unlike group plans that depend on employment status, personal policies offer lifelong renewability, as per IRDAI regulations.

Family protection

• Extend the benefits to your entire family under a single plan or through individual policies for each member.

Tax benefits

• Premiums paid towards individual health insurance policies are eligible for deductions under Section 80D of the Income Tax Act.

Peace of mind

• Knowing that your health insurance isn’t tied to your job can bring long-term peace and financial security.

Conclusion

Having both a group health insurance plan and individual health insurance policy is more than just a backup option; it is a way to future-proof your healthcare needs. While employer sponsored insurance is a great benefit, it is important to have a standalone policy that moves with you.

Whether you’re changing jobs, retiring or simply want more control over your healthcare choices, this shift is a wise move. Evaluate your current coverage, research suitable policies and take the next step towards securing your health.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It is advised to verify the currency and relevance of the data and information before taking any major steps. Please read the sales brochure / policy wordings carefully for detailed information about on risk factors, terms, conditions and exclusions. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.