How to Switch from Group Health Insurance to Individual Health Cover?

Case Scenario

When Rajeev, currently working with an MNC, decided to switch jobs, he was also concerned about shifting the group medical coverage that his present organization offered to an individual policy. Besides being largely unaware of the portability norms with regards to insurance in India, there were other relevant queries and terms that he was unaware of when he decided to shift.

There are several queries that need to be addressed: What are the norms of porting from a group insurance cover to a personal policy? Can you carry forward the waiting period accumulated over time? Can you shift to a different insurer?

If you are in a similar position as Rajeev, here is a quick glance at a few facts related to shifting from a group medical cover to a personal policy.

Consider These Things When Porting Health Plan

While porting your group health plan to an individual health plan, you should consider these things:

1. Consult With Current Insurer

   When you decide to switch your group health coverage to individual coverage, then the insurer will decide the premium amount as well as the terms and conditions of the new health plan. This is a rule that has been set by the Insurance Regulatory & Development Authority of India.

2. Make Sure to Inform the Insurer

   In order to get the porting done on time without any hassle, make sure that you inform the insurer 45 days before the expiration date of the insurance policy.

3. Pre-medical Check-up

   A pre-medical checkup is not required under the group health insurance plan however when you decide to port the plan to an individual plan, the insurer will ask you to get a pre-medical checkup done.

4. No Waiting Period

   Usually, group health plans do not have a waiting period so when you port it to an individual plan, the no waiting period clause can get transferred to the new plan. However, if your group plan has a waiting period then it will be transferred to the new individual plan.

   However, the important factor to remember here is that when you plan to shift policies from a group cover to an individual policy, you can only do so with the same insurer. You can only switch insurers when you have completed at least one year with your individual policy with the present insurer.

   You can also shift policies if your entire family is covered by it. You can choose individual policies for each family member or opt for a family floater cover.

How to Port Group Plan to an Individual Plan?

In order to port your group health plan to an individual health plan, follow the steps given below:

1. Inform Group Insurance Company

   Make sure to inform the insurer once you decide to switch to an individual health plan. Also, you must inform the insurer 30-45 days before the expiry date of the policy.

2. Look for a Suitable Plan

   After informing your group insurance company, you must look for an individual health plan that suits your requirement. There are plenty of websites on which you can compare different plans and then select the one that fits your requirements.

3. Ask for the Form

   Once you select the insurance plan, ask the insurer to provide you with the form that you can fill up and submit. Also, make sure to keep the documents ready that are required to submit along with the registration form.

4. Make the Payment

   Once you have submitted the form, you can pay the premium amount using a debit/credit card, UPI or net banking.

Benefits of Porting Group Health Plan to Individual Plan

Here are some of the benefits of porting a group health plan to an individual health insurance plan:

1. Waiting Period Benefit

   When you port the group health insurance plan to an individual health insurance plan then if the group health insurance plan has any waiting period then it will get transferred as well. However, if the waiting period is over then you can get all the benefits of the new individual health insurance plan.

2. Better Coverage

   Since the group health plan is provided by the employer to the employees and it is not up to the employees to purchase the insurance plan that could fit every employee’s requirements. This is the reason behind employees switching their group plan to an individual plan. Once you decide to switch the plan, you can set the coverage of the insurance plan as per your requirements.

3. Customization

   You can customize the individual health insurance plan as per your requirements. Also, you can purchase different add-ons if you want as per your budget. You cannot customize your group health coverage.

4. Increase Sum Insured Amount

   The group health insurance plan comes with a sum insured that is set after the discussion between the employer and the insurer. When you port the group plan to an individual plan, it gives you the authority to discuss all the aspects related to the insurance plan. Hence, you can talk to the insurer and increase the sum insured amount for better coverage.

Conclusion

Both group health insurance and individual health insurance plans come with their own benefits. However, if you are planning to quit your job and still want to be covered under the health insurance plan then you can switch the group medical insurance plan to an individual health insurance plan.