Planning To Quit A Job? Switch The Group Insurance To An Individual One

Planning To Quit A Job? Switch The Group Insurance To An Individual One

When facing a medical emergency or even a planned hospital stay, the assurance of health coverage given by medical insurance provides us peace of mind. Access to the health insurance that the business offers its employees is given once they are recruited. But in these times of layoff culture, when every day brings news of another round of tech lay-offs, what happens if someone loses their job or is fired? After quitting, would he still be eligible for health insurance plans for individuals?

Many people don’t realise that they can switch from group health insurance for employees to an individual or family policy, which depends on their specific policy and insurance provider’s rules.

Employees who leave their job or lose group coverage can retain accrued group insurance benefits by obtaining an individual or family policy, as per the IRDAI).

As per the above-mentioned rule, insurers must provide employees with a 30-day annual window for migration, allowing them to choose either an individual or family coverage from the same insurer.

During this transition, it’s essential to retain the continuity benefits of the employee’s group policy, including waiting periods, sub-limits, and similar features.* Additionally, the migration must be completed at the same premium that would be charged to a new policyholder receiving comparable coverage.

The starting date of the employee’s group health insurance policy is typically used to calculate the waiting period for coverage of pre-existing conditions or specific illnesses. The waiting period will begin on the policy’s start date if an employee has a medical condition before enrolling for group insurance. Until the waiting period is over, the employee will not be allowed to submit a claim for coverage for that specific illness.

People should be aware of their alternatives and the timeframe for switching from a group health insurance plan to an individual or family plan with the same insurer.

At least 45 days before your last day of employment with the employer, youmust apply to the insurance provider to port the policy. This provides the insurance company the time to process the application and guarantees that the person or family will continue to be covered following your last day at work.

If you’re considering leaving your current job, it’s essential to explore the possibility of transitioning your group health insurance to an individual policy. While the feasibility of this switch may vary depending on your specific policy and insurance provider, it’s a crucial step in ensuring that you and your family continue to have the necessary healthcare coverage during your career transition. Don’t forget to thoroughly research your options and consult with your HR department or insurance provider to make an informed decision about your health insurance needs when changing jobs.

Standard T&C Apply

Visit the official website of IRDAI for further details.

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.

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