Does Group Insurance Expire If You Leave Your Job?

With the rising cost of healthcare, it has become crucial that a health insurance cover is chosen for you and your family. It is indispensable to protect yourself from unwanted medical emergencies when you are in-between jobs. Ideally, all possible options must be evaluated when you leave a company that has you covered under a group insurance plan. This article will shed light on the tips that should be remembered to safeguard yourself and your loved ones in times of need.

Changing Jobs: How Does Group Health Insurance Work During The Transition Period? 📃

As per the general understanding, when an employee leaves an organisation, the group health insurance expires on their last working day. Few companies provide employees with a group medical insurance plan and pay either fully or partially the premium cost. Now, whether it is possible to transfer the existing group medical insurance plan to the next job or convert it to an individual cover in case of job change is often confusing.

As per the guidelines issued by The Insurance Regulatory and Development Authority of India (IRDAI) for monitoring medical covers, employees can convert their group cover (as offered by the employer) into an individual health plan after undergoing a set of formalities.💡

However, only a handful of insurance agencies offer this service. The insurance agency has the right to finalise the terms and conditions of the new insurance policy. So, the first step is to have a conversation with your existing employer about whether an option for such a conversion exists with the same insurer. Only once you learn about this from the employer will you be able to gain further clarity on the process.

The employee leaving the organisation may have to bear the extra premium cost to undergo this shift. Additionally, you may be required to furnish a medical certificate to switch from group to individual insurance. However, the insurer does not need to offer an option of conversion, and even the process costs differ from agency to agency. 💰

Analysing The Insurance Options When Switching Jobs 💭

When an employee intends to resign from their current organisation, they are presented with two options: conversion from a group health insurance to an individual cover or purchasing a private health plan for themselves and their family. Some of the common questions that are asked before making a job switch are as follows:

• Does a personal health cover you apart from the group plan offered by the organisation?
• Is there any kind of coverage provided by the group plan once there is a change in the employer?
• If a personal health plan exists, will it be able to cover your requirements along with your loved ones in case of an emergency?
• Which plan would be the most suitable during the transition between jobs: long-term or short-term?
• Is there a possibility that your spouse’s insurance plan can cover you?

Tips To Filling In The Gaps For Your Health Insurance During The Shift

Circumstances can differ from individual to individual while undergoing a job transition. It can be stressful for some as not having clear medical security can affect their peace of mind. To be in a better position where you can fulfil the requirements for yourself and your family, you can follow the steps below:

Asking The Existing Employer About The Current Policy 👀

Some employees may even have a personal health insurance policy, wherein it is wise to inquire about its expiration. If it expires during the gap period, the individual must ideally renew the same so that it remains to cover them. As for the group medical insurance, the employee should tally the details with the company’s HR and understand how it works as the date may vary based on the insurer.

Analyse Your Needs And Requirements ➕

Jot down the timeframe required to fulfil the health coverage gap. The next step is to study the medical conditions and see which plans fit your requirements. The insurance cover should ideally be within your budget and provide the best coverage possible. Several plans are available in the market that offer extensive and exclusive coverage to policyholders based on their needs. Keeping in mind the medical history and potential future needs, a suitable plan must be chosen for the long-term or short-term. ⏰

It is wise to ask the new employer if their plan offers a set of deductibles or not. Further, do not forget to check the facilities of coinsurance and copay so that any up-gradation or continuation can be easily achieved.

Check the existence and length of the waiting period for group insurances with the new employer. The idea is to be covered either by an individual health plan or the old group health insurance during the waiting period to tackle any emergencies efficiently. Also, a clear point by point comparison of old and new insurance plans should be made so that there are no hidden charges or terms and conditions that you may have missed. ✔

Conclusion

The sole objective is to not remain without a cover when transitioning between jobs. Therefore, all necessary factors need to be considered to ensure that you can peacefully safeguard yourself and your loved ones.