Can you keep your corporate health policy even if you leave the job?

Do you ever wonder what happens to the corporate policy provided by your employer in case you quit, change jobs, have been laid off or decide to become self-employed?

Well, having health insurance at all times is extremely important especially if you have a family to see. You never know when an emergency might strike. In such a situation when you’re already without a job, additional unexpected expenses can burn your pocket and drain your savings.

Before getting another job, you might want to wait for the next right opportunity or you might be in a mood to take a break.

Thus in such a gap period, having health insurance helps protect you when you need medical care. Without it, you end up paying from your pocket (we know you don’t want to be in this situation).

Well if you don’t already have an individual health policy, you can still retain the policy provided by your employer even if you no longer work there.

Insurance Regulatory and Development Authority of India (IRDA) states that an employee can convert the group health policy cover to an individual health insurance plan with the same insurance company after completing required formalities.

• The insurance provider of the group policy has complete right to decide the terms and conditions of the new converted individual policy along with the premium amount.
• It is also dependent on your employer and insurance company whether they allow you to switch from corporate group policy to an individual health insurance policy.
• The insurer may also ask for screening tests and medical certificates before issuing an individual health policy as pre-medical checkup is not a part of group health policy.
• You must inform the insurance company 30-45 days prior to the policy expiration date.
• Converting from corporate group policy to an individual policy can only be done with the same insurer.
• Mostly the premium of corporate group cover is paid by the employer but with conversion, the liability to pay the premium amount (that may be increased) falls upon you.

As you know, one of the biggest advantages of a corporate group health policy is that it has no waiting period. Well, let me tell you something that you’ll be delighted to know!

While switching policies from corporate to a retail individual policy - no waiting period also gets transferred (subject to the waiting period clause in the corporate policy).

Bottom line is - health insurance coverage is absolutely important for you and your family at all times as medical emergencies are uncertain. When you and your family are covered under a health insurance policy, it provides security and acts as a shield against medical expenses.