Employer health insurance coverage often ends when employees retire, creating a significant protection gap. According to reports from The Times of India, Rs 10 lakh health cover from employers may look sufficient while working, but the premium is usually paid by the company and the policy is easy to use, leading employees to postpone buying their own health insurance. The problem emerges when jobs end, as employer health insurance is linked to employment. Once employees resign, retire, or move to another organization, the cover may stop or change, leaving individuals who have depended on office insurance for 20-25 years without adequate medical protection close to retirement.
In most cases, group health insurance provided by employers continues only while employees remain eligible under company policies. As reported by The Times of India, after retirement, employers may stop covering employees, and some companies offer special retiree plans, but this is not available everywhere, and the terms may be different from the policy had while working. This means a Rs 10 lakh company cover today should not automatically be treated as lifetime health protection. Before retirement, employees should check with their employers about whether medical cover will continue and what the sum insured, premium, and conditions will be.
Age significantly impacts health insurance eligibility and premiums. According to The Times of India, a person buying a policy at 45 or 50 may find it easier to get suitable coverage than someone applying for the first time at 60 or 65. As people get older, health problems may appear, and insurers may ask for medical tests, apply certain conditions, or charge higher premiums depending on age and health. Some policies also have waiting periods for certain illnesses and treatments, making it beneficial to purchase personal policies several years before retirement.
The adequacy of Rs 10 lakh coverage varies significantly based on family size and medical needs. As reported by The Times of India, medical costs depend on the city, hospital, type of illness, and treatment required. A hospitalization involving surgery, ICU care, or long-term treatment can use up a large part of a Rs 10 lakh cover. Additionally, families relying on one Rs 10 lakh floater may find available cover reduced considerably if one member has a major hospital claim during the year. A separate personal policy can provide additional protection instead of making the entire family dependent on employer's plan.
Rather than purchasing duplicate coverage, employees can consider a combination approach. According to The Times of India, one option is to have a personal base health policy and then add a super top-up policy for larger hospital bills. For example, if employers already provide Rs 10 lakh cover, employees may choose to buy their own personal policy now and keep it active through working years. Some people may prefer a smaller base policy with a larger super top-up because it can provide higher overall protection at a manageable premium, depending on budget and existing coverage. As noted by Mint, this approach allows for suitable base policy with a super top-up for additional protection while maintaining affordability during fluctuating income periods.
