The Health Insurance Trick Most Corporate Employees Overlook

Are you a corporate employee with company-provided health insurance? Many corporate employees rely solely on the health insurance provided by their employer, thinking it’s enough. But there’s a smart way to enhance your coverage without breaking the bank—and it’s a strategy that too many overlook.

Why Your Company Health Insurance Isn’t Enough—And How to Fix It Without Breaking the Bank

When was the last time you looked closely at your health insurance policy? If you’re like many salaried employees, you probably rely on the health insurance provided by your company. After all, it’s convenient, and it feels like one less thing to worry about. But is it really enough?

In today’s world, where medical costs are rising at an alarming rate, solely relying on company-provided health insurance can be risky. Let’s dive into why you should rethink your approach and how you can secure comprehensive coverage without straining your finances.

The Soaring Cost of Healthcare

India is grappling with a healthcare crisis, with medical inflation running at around 14% annually. This means the cost of treatments and procedures is doubling every five years. What might seem affordable today could become a financial burden in the near future.

The Common Objections to Health Insurance

• "I have corporate insurance."

While company-provided health insurance is convenient, it usually offers limited coverage between ?3 lakh to ?5 lakh—enough for minor issues, but not for major health challenges. Additionally, job changes or restructuring can suddenly leave you without coverage when you need it most.

• "Health insurance is too expensive."

Paying for something you hope never to use feels like money down the drain. But consider this: medical inflation in India is around 14% annually, which means that medical costs are doubling every five years. What seems like a high premium today could save you from a financial catastrophe tomorrow.

The Solution: High Coverage with Low Premiums

So, how can you get the best of both worlds—comprehensive coverage without the hefty price tag? The answer lies in understanding deductibles.

A Cost-Effective Strategy: Understanding Deductibles

One effective way to bolster your health insurance is by purchasing an individual health insurance policy with a deductible. A deductible is the amount you agree to pay out of pocket before your health insurance begins to cover the remaining expenses.

How Does This Work?

Let’s say you take a private health insurance policy with a deductible of ?1 lakh. Because you’re sharing some of the initial cost, the insurance company reduces your premium significantly—sometimes by as much as 50%. This means you can afford a policy with a much higher coverage, say ?25 lakh or ?50 lakh, without paying an exorbitant premium.

A Real-Life Example:

Imagine a family of four: husband (35), wife (33), and two children (5 and 2). A base policy for ?20 lakh might cost ?38,235 annually. However, with a ?1 lakh deductible, that premium drops to just ?19,117. That’s nearly half the price, while still offering substantial coverage!

Now you might wonder, "If a claim arises, I’ll have to pay ?1 lakh from my pocket—does that really make sense?" Here's where your company-provided health insurance comes in handy.

For example, if your company provides a ?5 lakh cover and the hospitalization costs ?12 lakh, you can submit the claim documents to your company-provided insurer. They will cover ?5 lakh, and then you can submit a claim for the remaining ?7 lakh to your private insurer. Since the ?1 lakh deductible is already covered by your company insurance, you won’t have to bear that cost out of pocket.

This is why taking a policy with a deductible makes a lot of sense for employees who have company-provided health insurance.

Weighing the Downsides

Of course, there are some disadvantages to consider:

• Dependence on Corporate Insurance: If you’re counting on your company’s health insurance to cover the ?1 lakh deductible, remember that this protection vanishes if you leave your job. In that case, you’d have to pay the deductible out of pocket.
• However, with medical inflation, ?1 lakh today might only be worth about ?55,000 in a decade. If you plan to stay in the corporate world for the next 10 years, the deductible might not pinch as much as it seems now.
• Policy Lock-In: Once you choose a policy with a deductible, removing it can be difficult. You may only be able to do so after five years, and your health at that time will be a factor. This means you need to consider your long-term health and job stability when opting for a deductible-based policy.

Looking Ahead: Planning for Your Health and Wealth

In conclusion, while corporate health insurance is a great start, it’s not the whole solution. By strategically choosing a health insurance policy with a deductible, you can ensure you and your family are protected without overspending.

Medical costs are only going to rise, and being underinsured is a risk you can’t afford. Don’t leave your family’s health to chance—take control of your health coverage today and secure a safer, healthier future for your family.

Ready to secure your family’s health and financial future? Schedule a free consultation https://calendly.com/ravinagrani today to discuss tailored health insurance options that fit your needs!