Does health cover continue after losing the job?

The biggest question after leaving the job is whether the health insurance provided by the company will remain valid or not? Actually, the policy provided by the company remains valid only as long as you are working in that company. The company does not take separate health insurance for each employee, but takes health cover for all its employees together in the group.

Individual insurance can be more expensive than group insurance. What are the options for employees?

Port the policy:

According to IRDA, you can switch the group plan to individual health insurance with the same insurer. However, you may have to pay a higher premium for this. Before leaving the company, ask your HR or insurer if group insurance can be ported to individual. The waiting period also gets transferred on policy switch. There is no waiting period in group insurance.

Buy a new personal policy:

Buying your own health insurance does not create any gap in the cover. It may be more expensive than the corporate policy, but it is safer in the long run.

Keep an emergency backup:

It would be better to keep your own personal policy along with the corporate policy, so that there is no break in the insurance cover in case of layoff or change of job.

How to switch?

45 days before leaving the job, apply to your insurer that you want a personal policy instead of a group policy. If you forget to do this, then you have time till five days before the last working day, when you can apply. You can ask for the policy of your choice in the application. After submitting the application, the insurance company will inform within 15 days whether you are eligible for the policy of your choice or not.

Why is personal health insurance necessary?

Higher cover limit:

Company plan has limited cover, whereas in personal plan you can choose more cover.

Long term security:

Personal health insurance does not depend on the job.