Corporate health insurance stops when the employee loses his job. The refund of the top-up depends on the insurance company’s policy. It is better to have an individual policy so that there is no break in the insurance cover.
Nowadays, most companies provide health insurance to their employees. Corporate health insurance is the cover that companies provide to their employees and sometimes to their families. It includes basic medical expenses. Sometimes employees also add a top-up plan for additional facilities.
Yes, the additional expense incurred by doing so has to be paid by the employee from his own pocket. Now the question arises that if an employee loses his job, what happens to the corporate health insurance policy? Does it continue or stops immediately?
Corporate health insurance stops in case the employee resigns or is fired by the company. That is, the employee can avail its benefits only as long as he is working. Corporate health insurance also stops in case of job change or layoff.
As far as the refund of the expenses incurred for top-up is concerned, this money is refunded only when the mid-term cancellation conditions are already present in the policy. That is, whether you will get the top-up money back or not, it depends on the policy of the insurance company.
What are the options available to employees?
Many insurance companies provide the facility of converting corporate policy into personal health policy. Before leaving the company, ask HR or the insurance provider if the group health insurance can be converted into an individual policy. This keeps the terms like waiting period intact. Buying your own health insurance does not create any gap in insurance. It may be more expensive than the corporate policy, but is more secure in the long run.
It is always better to have a personal policy along with the corporate policy, so that there is no break in the insurance cover in case of leaving or changing the job. Even if the corporate health insurance stops in case of job loss, there is no break in the insurance protection if the employees are alert beforehand. Therefore, it is important that every person must have his own personal policy.
