Is Individual Health Insurance required if covered by employer

It is not absolutely necessary to buy individual health insurance, if you are covered under the group health insurance plan of your employer and if you feel that the cover is sufficient. However, it is always a good idea to supplement your employer's group insurance plan with an individual plan (whether an individual Mediclaim or family floater) for the following reasons:-

• Your employer's group insurance plan may not be comprehensive. Is the cover sufficient for major ailments, requiring prolonged hospitalisation and expensive procedures? Are critical illnesses covered? You may consider buying an individual heath insurance plan, as a top up to your employer's group insurance. You've a lot of flexibility in individual plans to opt for riders or features, that you usually do not have in your employer's group health insurance plan


• Your health insurance cover in your employer's group insurance plan is valid, only as long as you're employed with your employer. Your employer's health insurance will be valid, if you change jobs, leave your job for personal reaons or retire. However, your individual health insurance will be valid as long as you pay the premiums.


• It is always advantageous to buy individual health insurance, when you are younger. Not only are the premiums lesser, but you get a wider coverage of ailments. If you develop a medical condition, before you buy your health insurance, the insurer may exclude pre-existing medical conditions from the cover.


• You can claim a deduction of up to Rs 15000 from the premium of your health insurance plan, under Section 80D of the Income Tax Act. This will substantially reduce the cost of your health insurance.