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India’s young workforce embraces financial tools but neglects personal health insurance, relying on corporate plans that end with job changes.
Employer-provided health insurance certainly offers a basic layer of protection—but it often comes with strings attached.
In an era defined by job switches, side hustles, and career breaks, the way India’s young workforce views security is evolving—but health insurance hasn’t caught up yet. While millennials and Gen Z professionals are quick to embrace SIPs, mutual funds, and crypto for long-term wealth creation, many still view health insurance as a tick-box tied to employment—something bundled with their job, not something they own and control.
This misplaced reliance on corporate health plans is putting a rising segment of India’s workforce at financial risk, especially when life moves them off the clock. With healthcare inflation in India rising at an alarming rate of 14% annually, even a single hospitalization can derail months of careful financial planning—making it critical to have insurance that offers true continuity and coverage beyond the workplace.
The Problem with Corporate-Only Cover
Employer-provided health insurance certainly offers a basic layer of protection—but it often comes with strings attached. These policies may have sub-limits, co-pay requirements, room rent caps, or low coverage amounts. Worse, the cover ceases the moment you step out of that job, leaving a dangerous gap in protection during transitions.
This is especially problematic in a workforce that’s increasingly mobile and entrepreneurial. Freelancers, gig workers, self-employed individuals, and those in between roles don’t have the fallback of corporate insurance. And even for full-timers, the uncertainty of future employment underscores a critical need: insurance that works for you, not just your employer.
Why Personal Health Insurance Is Your Off-the-Clock Safety Net
To truly serve India’s modern workforce, health insurance needs to be flexible, portable, and personal. Here’s why a personal health insurance policy is no longer optional—it’s essential.
- Continuity of Coverage, Regardless of Employment
Job changes and career breaks are inevitable. Personal health insurance ensures you’re never without protection, no matter your employment status. It’s your constant companion—even when your ID card stops working.
- Customised Plans That Fit Your Life
Unlike standardised corporate covers, personal plans let you choose what you need—be it maternity benefits, wellness perks, critical illness protection, or higher coverage. You shape the policy around your life, not the other way around.
- Lower Premiums for the Young, Long-Term Rewards
Buying early has big advantages. Young professionals pay lower premiums and lock in their health profile, ensuring easier renewals and broader coverage as they age. Think of it as investing in your future wellness.
- Cushion Against Rising Healthcare Costs
Medical inflation is rising fast. A single hospitalization can wipe out savings. Personal insurance acts as a financial shock absorber—especially critical when you’re not drawing a regular salary or dipping into emergency funds.
- Freedom to Move Without Fear
Whether you’re chasing a passion project, going back to school, or exploring entrepreneurship, personal health insurance frees you from being tied to a job just for the medical benefits.
- Mental health cover
Stress, anxiety, and burnout are increasingly common among young professionals, especially in high-pressure or freelance environments. Many group insurance policies either exclude or significantly restrict coverage for hospitalisation related to mental health which is covered in all personal health policies.
- Tax Benefits That Add Up
Under Section 80D of the Income Tax Act, premiums paid towards personal health insurance are eligible for deductions—offering savings that boost your financial well-being while you secure your health.
Reimagining the Role of Insurance in the Modern Work Life
For a new generation of professionals, work doesn’t look like it used to. It’s dynamic, purpose-driven, and not always linear. Health insurance, too, must evolve to meet this reality. It needs to be seen not as an employment perk but as a personal asset—one that enables freedom and resilience.
To make the right choice, keep these in mind:
- Scrutinize terms: Check waiting periods, exclusions, sub-limits, and co-pays. Transparency beats surprises.
- Opt for adequate cover: Choose a sum insured that reflects today’s medical realities—not yesterday’s assumptions.
- Check insurer credibility: Claim settlement ratios, network hospitals, and service quality matter.
- Prefer cashless options: These simplify treatment during emergencies when time and money are scarce.
- Declare pre-existing conditions: Full disclosure avoids claim rejections later.
Conclusion: Your Health Shouldn’t Be On The Payroll
If protection ends when the workday does, is it really protection? India’s workforce needs insurance that works off the clock—coverage that stays with them through every pivot, pause, or pursuit.
Reimagining health insurance as a personal, portable, and proactive decision is the first step toward a safer, more empowered future—one where healthcare costs don’t derail aspirations. It’s time to stop borrowing security from our employers and start owning it ourselves.
It is authored by Rupinderjit Singh, Senior Vice President, Retail Health, ACKO
The views expressed in this article are those of the author and do not represent the stand of this publication.
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