Many businesses offer group life insurance to their employees as part of their benefits packages, often at no additional cost. Group insurance offers consistent coverage and benefits to all members, regardless of their variables like age or gender. Some group policies additionally provide coverage for an employee’s family. Subject to the sub-limits established in the policy, medical benefits may include hospitalisation costs, health insurance with maternity cover, ambulance coverage, and more. What happens to your group life insurance policy when you quit your job? It is typically believed that the insurance coverage ends when the employment does. When a person leaves their position, many insurers who provide group coverage allow them to change the coverage to individual insurance. ^
Benefits of Transitioning from Group to Individual Coverage
You may change from a group plan to individual health insurance under the same insurer by the regulations established by the Insurance Regulatory Development and Authority of India (IRDAI). The premium rates will be greater than those of your employer-sponsored group insurance. #
The waiting time from your employer’s health insurance is transferred to your health insurance after porting. The waiting period is the time you must wait for insurance benefits for pre-existing conditions; some policies may also have a general waiting period in the initial months. Plans for group insurance typically don’t have a waiting period. You can fully use your health insurance coverage From when you switch a group policy to an individual one. Your new insurer “shall allow for credit gained by the insured for a pre-existing condition(s) in terms of the waiting period,” according to IRDAI regulations. # ]
Furthermore, group health insurance may only sometimes be suitable for a particular covered individual; it cannot be adapted to their needs. For instance, your group policy could not offer vaccination coverage for your kids even though you would like it to.
What Do You Need To Do?
Your insurer must be notified at least 45 days before your resignation. If you fail to inform the insurer, you have five days starting from your last working day to do so.
However, the insurer can evaluate the additional risks before deciding whether to permit migration to individual health insurance. IRDAI states that underwriting will be included in transitioning from a Bajaj Allianz group health insurance to an individual health insurance policy. Commonly required documents include a proposal form, portability form, and a signed, stamped resignation or retirement letter indicating the final employment day. #
The insurance company would have informed you of your eligibility within 15 days had you submitted your selected policy. When you pay the plan’s premium, the insurance becomes active. After transitioning to the new policy, consider transferring to a different insurer’s equivalent health plan.
Resigning from your current job doesn’t have to mean losing the benefits of your group health insurance policy. By exploring options like portability, conversion, or securing an individual health insurance plan, you can continue to maintain essential health coverage for yourself and your family. It’s crucial to understand the terms and conditions of your policy, communicate with your employer and insurance provider, and take proactive steps to ensure uninterrupted healthcare coverage during this transitional period. Prioritising your health and well-being remains paramount, even when changing your employment status.
# Visit the official website of IRDAI for further details.
^ Claims are subject to terms and conditions set forth under the general health insurance policy.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.