Corporate vs Personal Health Insurance: Medical costs are rising rapidly today, making health insurance an essential financial safeguard for every individual. Many people have corporate health insurance provided by their employer, but the question remains whether relying on this cover alone is sufficient or whether taking a separate retail health insurance policy could be a better option.
Responding to questions from senior anchor Sakshi Batra on a Business Today show, Aditya Shah, Founder of Hercules Advisors, said that despite having a limited budget, people must maintain their own separate retail health insurance policy. He noted that corporate health insurance comes with its own limitations, which can create serious problems later.
Citing an example, Aditya Shah said that if a person has only Rs 5 lakh in corporate health cover and is diagnosed with a serious illness like cancer, that amount will not be sufficient. He pointed out that illnesses like cancer may require repeated treatment, with expenses continuing for several years.
He said corporate policies come with challenges such as the cover ending after changing jobs or leaving the company. Therefore, it is essential for an individual to have a personal health policy so that financial security remains intact when medical needs arise in the future.
According to Aditya Shah, those with a limited budget can adopt certain options to keep premiums low. He said people can opt for a super top-up policy for a lower premium, or begin with a base health policy of Rs 10 lakh.
He also explained that adding a deductible to a policy can reduce the premium. A deductible means that the individual bears expenses up to a fixed amount, after which the insurance company pays.
Aditya Shah said that completely postponing health insurance is akin to taking a major risk with one’s financial future. He noted that a large hospital bill can affect any family’s financial condition, making it essential to secure the right health cover even on a small budget.
He advised people to choose a health insurance plan based on their needs, age, and financial situation, and not to rely entirely on the cover provided by their employer.
Disclaimer: This article is for informational purposes only and should not be considered investment advice in any form.
