Do I need to take a separate Health Insurance?

I have my corporate Mediclaim. Do I need to take a separate Health Insurance?

Ravi, aged 48 is working in a reputed MNC IT company. His family is his home-maker wife and 2 kids. He had a family floater group Mediclaim policy for his family. All were in good health and free of any life-style ailments. Ravi was advised by his financial adviser to take a separate health insurance. The reason explained by his adviser is that in case of job switch, there could be a time period when he is not covered by any health insurance.

However, Ravi did not pay heed to the adviser. In 2 years’ time during a yearly health check, Ravi was diagnosed with Diabetes. He now approached a health insurance company for a health insurance. On medical tests, his Hba1c was 6.5 (Hba1c< 6 is considered normal) . The health insurance offered health insured at different terms. They considered Diabetes as a pre-existing disease without coverage for 3 years and offered insurance with 20% co-pay. For the rest of the family the terms were 0% co-pay. Ravi realized his folly of delaying the separate health insurance.

Ravi learnt the importance of a separate health insurance the hard way. Had he taken the separate health insurance earlier when in good health, he could have got better terms, at 0% co-pay and full coverage.

Do not wait. Act now and get a separate health insurance while you still have good health. A wait could prove costly.

What are the other reasons to take a separate health insurance?

With cost rationalization taking place in the corporate world, the terms under which Mediclaim is offered is undergoing several changes. Earlier, all illnesses were covered with 0% co-pay. With increasing costs of hospitalization, these terms are getting rationalized. We come across corporate Mediclaim policies which have made it 20% to 25% co-pay. Also some of them have added restrictions on the room-rents, and sub-limits for each of the medical procedure. What this means is that it is prudent to take a separate medical insurance at better terms. Who know what changes the corporate group policies will undergo in the future as the average age if the working population increases!

High levels of work stress

The stress levels at jobs have increased. You can see your colleagues taking a sabbatical to break free from the stress. Will the group Mediclaim continue during this period? Even if corporates cover you today, who knows what changes will be made to the policy in future? If you decide to move on to a different company with a break of 1 month, is it worth taking the risk of no medical coverage during the period?

Tax deduction

Health insurance premium can be claimed as tax deduction under section 80D upto Rs. 25,000 for Self, spouse and children. For more details on tax deduction, please check here.


Conclusion is it is a good practice to take a separate health insurance while in good health even if you are already covered under a group mediclaim policy.

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