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The new retail policy may not offer all the same features as your group policy.
Migration is at the insurer’s discretion. (representative image)
Tata Consultancy Services’ (TCS) plan to lay off over 12,000 employees worldwide has raised fresh concerns about job security and the benefits linked to employment. One key benefit many risk losing is the employer-sponsored group health insurance, especially those covering elderly parents.
Most employers have reduced health coverage to just the employee, spouse and children. Parental cover, if available, is an added advantage as buying health insurance for senior citizens is difficult. Premiums are high, many insurers hesitate to issue policies for older people, and pre-existing illness waiting periods can stretch up to three years.
If you have been relying on your employer’s group health insurance for your parents, it is important to act before you resign or are laid off.
Options When Leaving a Job
You can buy a separate personal policy. But new policies come with waiting periods for pre-existing diseases and even some surgeries like cataracts or hernias. An alternative is to migrate from your employer’s group policy to an individual policy with the same insurer.
The Insurance Regulatory and Development Authority of India (IRDAI) allows such migration. Insurers must let you move to a retail plan with the same sum insured and benefits, subject to their approval.
Key Advantage of Migration
The biggest benefit of migrating is carrying forward the waiting period credit. For example, if your parents were covered under the group policy for two years, and the new policy has a three-year waiting period, only one more year will apply for pre-existing diseases.
What You Need to Do
Migration is at the insurer’s discretion. They may request medical tests and charge premiums based on health conditions. Once you decide to leave your job, inform your HR team early and begin the migration process. You may need to submit your resignation letter, an employment certificate and health records.
Earlier, this process had to be started at least 45 days before leaving. While there is no fixed timeline now, it is best to start early because your group cover stops once you exit.
Read the Fine Print
The new retail policy may not offer all the same features as your group policy. Check details like room rent, sub-limits and co-pay clauses. Also note that during migration you cannot switch insurers; you can only move to your existing insurer’s retail plan. Later, you can port to another insurer if needed.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
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Delhi, India, India
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