The false sense of security
If your employer provides health insurance (group mediclaim), you might think you're covered. But here's the uncomfortable truth: your corporate health cover ends the day you leave your company.
No notice period, no extension, no grace period. Resign on Monday, and by Tuesday you're uninsured. And if you have a pre-existing condition at that point, getting personal insurance becomes expensive or difficult.
5 gaps in corporate health insurance
1. It's temporary
Group insurance is tied to your employment. Change jobs and there's a gap. Get laid off and there's a bigger gap. Retire and it's gone entirely. Your personal health insurance should be your permanent safety net.
2. Sum insured is often too low
Most companies offer ₹3-5 lakh cover. A single hospitalisation in a metro city — especially for surgery, ICU stays, or cancer treatment — can easily cost ₹10-25 lakh. A ₹5 lakh cover runs out fast.
3. Your family might not be fully covered
Many group policies cover only spouse and 2 children. Parents are often excluded. And if your parents are senior citizens, they're the ones most likely to need hospitalisation.
4. No-claim benefits are lost
Personal health insurance gives you no-claim bonuses — your sum insured increases every year you don't claim. Group insurance has no such benefit. You're essentially starting from scratch every year.
5. No critical illness cover
Group mediclaim covers hospitalisation only. It doesn't cover lump-sum payouts for cancer, heart attack, or stroke diagnosis — which is what critical illness insurance does. You need a separate policy for this.
What you should do
- Buy personal health insurance now — even if you have corporate cover. A ₹10L family floater costs ₹15,000-25,000/year for a family of 4 under 35. It gets more expensive every year you wait.
- Buy a super top-up — if ₹10L feels expensive, get a ₹5L base policy + ₹20L super top-up. The super top-up kicks in after the base is exhausted and costs just ₹3,000-5,000/year.
- Cover your parents separately — a ₹5L policy for parents aged 55-60 costs ₹20,000-35,000/year. Claim it under Section 80D for ₹50,000 tax deduction (senior citizen parents).
- Consider critical illness cover — a ₹25L critical illness policy costs ₹5,000-8,000/year for someone under 35. It pays a lump sum on diagnosis.
How Kosh helps
Upload all your insurance policies on Kosh Insurance. Our AI maps your coverage across 10 categories, shows overlaps (where you're double-paying), and highlights gaps that could be financially devastating. The analysis takes 2 minutes and is completely free.