How Does Group Health Insurance Work When Switching Jobs?

In 2022, the cost of healthcare is something that can easily burn a hole through your pocket; which is why you absolutely need a health insurance policy to have you covered at all times. Having one helps to ensure a financial shield alleviating, any financial stress that can come with a medical emergency. Among the different types of health insurance plans, a group insurance cover is a popular insurance plan often offered by corporates to its employees. A master policy purchased by the organization covers all its eligible employees under one insurance cover for a nominal premium which is generally paid by the employer or shared with the employee. A group health insurance plan ensures coverage for its employees and extends the benefits to provide non-monetary perquisites. However, there is a limitation for group insurance plans, wherein the coverage only lasts till the employee is in service. Change or termination of employment ends the insurance coverage. This article talks about the different points about group health insurance and its correlation to changing your job. Continue reading to know more.

Understanding Group Health Insurance in India

Many companies in India offer group health insurance plans to their employees. These plans are generally comprehensive and cost-effective due to employer contributions. However, when you leave your job, the group health insurance coverage usually ceases. Here, we discuss health insurance company jobs, their importance, and things to keep in mind before switching jobs.

How does group health insurance work when changing jobs?

A typical group insurance policy’s coverage ends on the last working day of your job. However, there are a few insurance companies that allow converting the group insurance policy into a standard insurance plan by paying the full premium. This way, as a policyholder, you do not lose coverage while being protected from financial risk of medical emergencies. The regulator, IRDAI, allows the employees to convert group insurance plans to an individual policy with the same insurance company only after completion of necessary formalities. You can visit the official website of IRDAI for further details. That being said, it is the discretion of the insurance company to decide the terms of such an insurance cover. Keep in mind that this conversion option is not available with all insurance companies (only a handful). Thus, you need to check with your insurer beforehand. Along with paying incremental premiums, you may be required to undergo a medical checkup to convert your insurance coverage. * Standard T&C Apply

What are your health insurance options when changing jobs?

When changing jobs, there are two options — first, converting your insurance coverage to an individual policy, or second, buying a fresh insurance plan. While exercising the first option depends upon whether the insurance company allows for such a facility, the second alternative is a guaranteed way to ensure medical coverage. When selecting a separate policy, health insurance plans for family can be effective in ensuring coverage not only for you, but also your dependents, such as your parents, spouse, or children. This policy can be further fine-tuned to secure coverage using add-on riders that are offered by your insurer. While add-ons are additional insurance covers, they end up increasing the premium and you can make use of a health insurance premium calculatorto determine the final value. * Standard T&C Apply Like all major decisions in your life, you need to take health insurance seriously and buy a policy considering your family’s medical history. In this process, selecting a plan that offers AYUSH treatment in health insurance is an effective way to ensure coverage for alternative forms of treatment, in addition to other benefits. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.

How to Cover the Gap in Your Health Insurance When Changing Jobs?

You can do this in two possible ways:

Portability:

You can consider porting your existing group health insurance to an individual plan during the job change. This allows you to retain your existing coverage benefits and avoid a break in coverage.

Individual Health Insurance:

Consider purchasing a new individual health insurance policy before your old coverage ends. This ensures continuous coverage and allows you to tailor the plan to your specific needs.

Importance of Having Health Insurance When Changing Jobs

Unexpected medical situations can arise at any time, and having your own health insurance policy provides a vital safety net, especially during job transitions. It ensures you have continuous coverage even if you are between health insurance company jobs. This uninterrupted protection is crucial for managing medical emergencies without facing significant financial stress. With your own policy, you won’t have to worry about losing coverage or accumulating high medical bills during uncertain times. It offers peace of mind and financial security, so you can focus on your health and well-being without the added worry of unexpected expenses.

Things to Keep in Mind About Health Insurance Before Switching Jobs

Always remember the following factors about health insurance before switching jobs: Portability: Understand the portability process and deadlines associated with your current group health insurance plan. Waiting Period:New individual health insurance plans might have waiting periods for pre-existing conditions. Consider this when choosing a new policy. Continuity of Care: If you're undergoing treatment, ensure your new plan covers your existing doctor network or allows continuation of treatment.

FAQs

Is it possible to transfer health insurance from one company to another?

Yes, you can port your existing group health insurance to an individual health plan with another insurer. This process is called portability.

Can I claim health insurance during the notice period?

Yes, you can claim health insurance benefits during your notice period as long as your group health insurance coverage is active.

What are the disadvantages of porting health insurance?

Portability might not always be possible, and some insurers might have waiting periods for pre-existing conditions even with a ported plan.

What is the grace period for porting health insurance?

The Insurance Regulatory and Development Authority of India (IRDAI) mandates a 45-day grace period for portability requests after your group health insurance coverage ends.

What is the time limit for the portability of health insurance?

There is no specific time limit for portability requests. However, it's advisable to initiate the process well before your group health insurance coverage expires to avoid a gap.     *Standard T&C Apply *Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale. The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.