Portability of Health Insurance from Group to Individual Cover

A group health insurance is highly popular among salaried individuals. It is a type of medical insurance provided by the employer to their employees. This insurance offers numerous health benefits coverage to the employees. As the premium is usually paid by the employer, the employees are always eager to know the benefits that can be availed with the policy. Though there are benefits, the policy also has many limitations in terms of the amount covered, flexibility, and duration. The question relevant to the employees is what happens to the policy when they leave the job? Well, on leaving the job, you can avail the health insurance portability from group to individual cover. The policy will be transferred to individual health insurance and can be run from your end.

Long-Term Disadvantages of Group Medical Insurance Plans

As mentioned above, group insurance plans are not all great and have many limitations. So, let us explore some of the major limitations of group insurance covers.

1. The employee has no control over their individual coverage as the organization controls the policy.

2. The policy gets discontinued when you leave the job. However, portability of group health insurance policy to individual policy can be done to prolong the benefits.

3. Premium amount is the same for the healthier as well as high-risk category people. In an individual policy, the premium is lower for disease-free people.

4. You have to buy an additional cover if you are looking for specific coverage in the policy.

Things to Consider While Switching from Group to Individual Plans

When availing portability of group health insurance, you must keep the following pointers in mind:

●      Consultation with your Current Insurer

As per the IRDA guidelines, individuals with group plans can switch to individual health insurance plans with the same insurance company after completing the required formalities.

●      Keep Time Period in Mind

To port your policy, it is mandatory to inform the existing insurer at least 45 days before the policy’s renewal or expiration.

●      Pre-Medical Checkup May be Required

Some insurers may ask you to get a pre-medical checkup before switching the policy from group cover to individual cover.

●      Consider the Waiting Period

Typically, there isn’t any waiting period in the group insurance cover, and on portability, you won’t be required to serve any waiting period. However, if there is a mentioned waiting period in the policy, you will have to serve it before porting the policy.

Process of Portability of Health Insurance from Group to Individual Cover

Down-below is the process of portability of health insurance from group to individual policy:

1.     Selecting the Policy

The foremost step is to compare health insurance plans and select a policy that befits your requirements. Make sure to consider coverage amount, exclusions, benefits, terms, and conditions, etc., of the new policy.

2.     Filling the Paperwork

Once you have selected the policy, fill out the form for porting from group to individual coverage. The details of the existing policy, age proof, claim history, medical history, and any other declarations may be required to attach with the form.

3.     Submission of the Documents

Submit the documents at least 45 days prior to the expiration or renewal of the policy.

4.     Payment of the Premium

After the insurer accepts your documents, they create new underwriting laws and terms and conditions of the policy. It usually takes up to 15 days after which you can pay the new premium amount of the policy.

Benefits

The portability of group health insurance will add up many benefits for your new policy, such as:

• Comprehensive Coverage

Individual health insurance can be customized as per your health requirements and offers more benefits as compared to the group cover.

• Increase in Sum Assured Value

While porting from group cover to individual cover, you get the option to increase the sum assured of the policy cover. However, there may be certain rules of the new insurer that you may need to oblige with.

• Credit Obtained for the Waiting Period

The credit obtained for the waiting period for pre-existing diseases gets carried forward to a new plan, and you can enjoy its full-benefits.

FAQs

1. Can I avail both group and individual health insurance cover?

Yes, it is possible two have two policies at a time.

2. What happens to my group insurance cover when I leave the job?

The insurance cover gets discontinued. However, you can port it to individual cover. Conclusion Portability of health insurance from group to individual is a perfect option for people who are leaving their job and want to avail the benefits of their existing policy. You can consult our insurance experts for more detailed information.