Group health insurance offered by an employer has its own set of advantages especially if you cannot afford to pay premiums on your own. However, most financial planners suggest that it is absolutely necessary for working professionals to have their own individual health insurance plan. In terms of benefits offered, a group health insurance policy may do the job of providing financial security against medical threats. However, the option to customize is extremely limited in group health insurance policies.
Health insurance companies now allow policyholders to convert their group health insurance plan into an individual one with the help of the portability option. Instead of buying an entirely new cover, you can simply convert your group policy without losing out on the accumulated benefits. If you wish to make this change, you can contact the customer service of your health insurer and ask them about the process.
Converting your group health insurance policy to an individual policy makes sense in a lot of ways. The advantages of conversion can be listed as follows:
Though an individual policy gives you more control, you may have to face certain limitations with regard to cost and waiting period. The disadvantages that you might face during this conversion process can be given as follows:
Individual health insurance provides you more control over how you should be covered by a mediclaim policy. However, you may face restrictions if you have many existing health conditions or family medical history. The cost of insurance could be higher when you opt for an individual cover. If you cannot afford to pay the premiums, it is better to stick to the insurance cover offered by the employer. Group health insurance policies provide coverage as long as you are the employee of a particular company. It is better to make the conversion if you prefer to customize your health insurance cover and affordability is not an issue.
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