How to Secure Health Insurance When Changing Jobs
Mini Balakrishnan
If you are having a group health plan it means that your employer pays the policy premium for you. But what happens when you decide to move to a different job? As you might know, the employee group health insurance or the employee insurance is valid only till the employee stays with the company that had provided it for him. Now, if you decide to leave the company you will lose the coverage and you will certainly have to take individual/ family health insurance to continue getting health protection.
How To Shift From Group Health Insurance Policy To An Individual Policy?
There are many schemes of group health insurance plans that your employer may offer and you would have been given the best suitable one by your employer for the larger benefits and perks.
It is possible to shift from a group health insurance policy to an individual health insurance policy. For this, you have to get in touch with the insurance company that provided the group health insurance plan to your previous employer. The first and most important thing here to notice is that you are now supposed to pay the required premium from your own pockets and abide by the rules and regulations of your policy.
Let us look at the process of shifting from group health insurance to individual health insurance policy step by step.
1. Choose Your Preferred Plan
Your individual health insurance policy could be a comprehensive cover, cover with add-ons or any other plans that might offer more health benefits and enhanced coverage. The choice is completely yours.
2. Submit Required Documents
Once you choose the plan you have to fill out the required forms either online/offline at your convenience and then you may have to submit documents to complete the process in its proper way.
For example, you might be asked to submit your previous group health insurance plan. In some cases, an additional medical check-up will be required too.
Make Sure you complete the paperwork and submit all the relevant required documents on time ideally before the renewal of the current employee health insurance plan. This will ensure there is no break in the tenure of your health insurance policy.
3. Check The New Premium
When you were under the employer’s coverage the underwriting would have been entirely different as the policy scheme and risk involved etc all were different. For an individual policy, it would be a different underwriting due to obvious reasons and the premium will be calculated as per that. You should always check the new terms and conditions on the policy and clarify any doubts if any, before agreeing to pay the new premium.
4. Verify Terms Of Newly Issued Policy
Once you have shifted from group insurance to your insurance cover for health, it is recommended that you check the newly issued health insurance policy and clarify any doubts regarding the new terms and conditions. It is always better to rectify any problems at the beginning itself to avoid any future hassles.
Key Factors Before Switching to Individual Health Insurance
As you are aware of how to shift from the group insurance plan to your health plan you may have to consider the following certain important factors:
1. Underwriting
Each type of policy will have its terms and conditions and that is referred to as underwriting. Now that you decide to switch the group plan to an individual plan you have to make sure you are well aware of the new underwriting applied to the new policy.
2. Need A Medical Check-Up?
Well, most of the insurance companies will ask you to get a medical check-up before trying to switch over to the individual health insurance plan as the group health insurance policy might have old data about your health and any new health-related concerns or updates need to be intimated to the insurance company to make sure the same is mentioned in your policy details. The premium will also be calculated using the same data.
3. Notify Insurer Early to Ensure Smooth Policy Transition
This part is very crucial as you try to switch to a different mode of health insurance plan. It is the intimation that keeps all things smooth for taking the new policy without any break in the tenure of the policy to keep all the common benefits that you were getting intact.
Ideally, it is recommended to inform the insurer 30 days before the policy expiry, that is as soon as you notify your resignation to the company you may follow up about the insurance policy also to the respective insurer. This gives the insurer ample time to redo your policy into a new one and it will be a smooth journey for you as well as the insurer.
4. Consider The Waiting Period
It is an important factor to consider the waiting period, which is normally a time that the insured needs to wait before making his first claim about any health issues. Usually, the group health insurance plans do not have a waiting period before making a claim and the organisation will take care of it.
But now the situation is different as normally all individual health insurance plans are given an initial waiting period. Usually, the waiting period will be given while trying to switch as you would intimate 30 days before the expiry or renewal of the policy. However, make sure the waiting period is calculated properly while the actual switching happens. You may clarify this will the insurance company.
Benefits Of Switching To an Individual Health Insurance Plan
There are many benefits available to you when you transfer your group policy to an individual policy.
1. No Dependency on Employer
When you were under the employee insurance plan you always had to depend on the employer to make sure your health is taken care of and all the other things related to your insurance but it is no more a hassle now as you will be dealing with it on your own.
2. Comprehensive Coverage
When your insurance policy was taken care of by your employer it was they who decide which policy you would need when you are staying in the organisation. But when you have the individual cover you are free to choose your cover as per your personal needs and that makes you more satisfied.
3. Waiting Period Benefit
When you switch over to individual health insurance, you do not have to undergo the waiting period terms and you may start making claim immediately after the new cover becomes active.
4. Continuous Coverage
Avoid gaps in coverage by seamlessly transitioning to an individual plan.
5. No Claim Bonus
Any accumulated benefits, like a no-claim bonus from your group policy, may be carried over to your new individual plan.
6. Tax Benefits
Premiums paid for individual health insurance may be eligible for tax deductions under Section 80D of the Income Tax Act in India
Conclusion
Though you had enjoyed many benefits from the group health insurance policy while you were working in an organisation, you may always have to choose from an individual plan while you try to move away from the company even when you have to pay the premium. You would need to inform the insurance company well in advance of the expiry date and that is considered very important to avoid any break in benefits, waiting period etc.
