How to retain your company’s health insurance even after getting laid off

Transferring from your corporate group health insurance coverage to an individual scheme, you can uphold the advantages of corporate medical protection and make sure that your family (and you) continue to stay secure in case of medical emergencies.

India has long been a lively economy, bustling with numerous workers across assorted health insurance industries. However, within the ever-evolving employment panorama, one element that tends to unsettle people is the anxiety of forfeiting their business health insurance perks after a layoff, retirement, or when the employer terminates the coverage.

In such situations, the query persists: How can one proficiently oversee their medical expenditures?    

Thankfully, the solution resides in an often-neglected choice: transferring your group health insurance plan. Portability offers a safety net, allowing employees to shift effortlessly from a group to an individual health insurance scheme.

This approach not only secures continuous health insurance but also presents the versatility to opt for a personalized scheme that caters to one's distinctive healthcare requirements.

Transferring from group health to individual

Let's, for instance, consider the scenario of Mr Ram who was employed by a Tech company in Mumbai. Similar to many, he valued the conveniences of his job, notably the group health insurance that protected his family of four.

However, life took an unforeseen twist when he was let go due to a company reorganization. The initial query that entered his thoughts was, "What about our medical protection?" ( health insurance)

Mr Ram ascertained that he could transfer his group health insurance policy. This possibility became his safeguard, guaranteeing that his family wouldn't be left exposed. It permitted him to shift from a group to an individual health insurance plan, offering the flexibility to choose a tailored scheme that most suitably met his family's needs.

Here's how he executed it.

Examining the particulars: Mr Ram began by thoroughly scrutinizing the transferability provision in his group health insurance policy. Being aware of the terms and conditions linked to transferability laid the basis for his shift.

Contacting HR: He corresponded with the HR department no less than one-and-a-half months before his final day, which facilitated a smoother transition and circumvented any unforeseen developments.

Preserving existing advantages: Mr. Ram was relieved to discover that all the perks of his corporate group health insurance would remain unaltered when transferred to an individual policy.

Submission of documents: After he picked an individual policy, he provided the requisite paperwork to commence the transfer process.

Waiting interval: After presenting his paperwork, there was a brief waiting period. This duration allowed his insurer the time to evaluate his application and make determinations regarding the terms of the new policy.

Be acquainted with the continuity perks

Waiting period exemption: Mr Ram had been with his company for five years. As a result, the usual waiting period for a new policy was excused.

Tax benefits: In line with Section 80D of the Income Tax Act of India, he enjoyed deductions on the premium paid for the new policy.

For Mr Ram, and many in a similar predicament, layoffs or retirement shouldn't signify compromising on health insurance coverage. Through transferring, they can guarantee continuity and protect their loved ones. Whenever life presents an unexpected twist, remember Ramesh's narrative — and be aware that policy transfer could be the silver lining.

Note: *The character and event appearing in this article are entirely fictitious and used for illustration purposes. Any resemblance to actual events or persons, living or dead, is purely coincidental.