Difference Between Corporate Health Insurance and Personal Health Insurance

Corporate Health Insurance Vs Personal Health Insurance

Corporate Health Insurance Vs. Personal Health Insurance

It is crucial to have a health insurance plan that provides complete coverage for both you and your loved ones. There are many different types of health insurance coverage available. Corporate and individual health insurance plans are two of the most often used kind of health insurance. Although the coverage provided by each of these plans may be comparable, the qualifying requirements for each plan vary. We shall learn the distinction between group health insurance and individual health insurance in this essay. Let’s get going.

Factors Influencing Health Insurance Plans

The selection of a health insurance plan depends on various factors such as:

1. Cost

The cost-effectiveness of an insurance plan is the most important aspect of consideration when choosing an insurance plan. Because they are less prone to face health emergencies, younger health insurance policyholders benefit from cheaper health insurance rates. A health insurance plan’s cost is also influenced by the extras chosen and how comprehensive they are. The insurance coverage you choose can also be more expensive if you reside in a major city where healthcare expenditures are greater.

2. Choice

You can obtain the aforementioned plan if your employer permits employees to benefit from its corporate health insurance programme. Having said that, you should think about enhancing it with a personal or family floater health insurance plan for extra protection that may be tailored to your needs and those of your family.

3. Benefit:

The benefit an insurance offer makes a lot of difference to which type of insurance people opt for. Be it corporate or personal. Various advantages are offered by health insurance policies, depending on the type of plan chosen. People who choose comprehensive plans are eligible for more comprehensive coverage than people who choose basic policies. You can purchase add-ons that give coverage for particular costs that might occur during a medical emergency. Among other things, these add-ons provide a death benefit and accidental death coverage.

4. Job

Your health insurance premium may vary depending on the type of employment you have. Your insurance premium will be greater the more risks your employment needs you to incur.

Difference between Corporate Health Insurance & Personal Health Insurance

Even though corporate and personal health insurance serves the same purpose, there are a lot of different parameters that create a difference between the two. Let us take a look at all the parameters.

ParameterCorporate Health InsurancePersonal Health Insurance
General meaningOffered by corporates and companies for employeesCan be availed by an unemployed person or someone who does not necessarily do a job.
Who is insured? The employee and sometimes immediate relatives are Individuals along with family members. The cover can be chosen
Who is the purchaser? The companyThe individual
How much control does the insured have over the plan? No control as the company chooses the benefitsComplete autonomy over the plan as the individual chooses the plan.
Option to buy Add-ons: May or may not be available. Depends on the companyPossible
Claims:Has to be made by the companyHas to be made by the individual
Available Sum Insured: Depends on the companyCan be increased and is decided by the individual
Eligibility Criteria: Should be employed in the company Should be over 18 years of age to buy an independent cover
Exit criteria: Leaving the company, or can be transferred. The person can choose to exit at any point
Tax benefit: May or may not be availableIs available
Coverage for Pre-existing diseases: May or may not be availableIs available
Maternity Benefits:Is covered most of the timeIs covered
No Claim Bonus: May or may not be availableIs available
Medical Check-ups before purchase: Is conducted May or may not be necessary
Coverage for Critical Illness: Is availableIs available

Why You Should Buy Individual Health Insurance Over Corporate Health Insurance

Individual health insurance plans are intended to cover a single person’s medical bills, as opposed to corporate health insurance policies, which are made to cover several individuals. You have the right to benefit from cashless hospitalisation as well as a variety of add-ons so you may extend the scope of coverage offered to you as an insured person under this plan.

The full insured amount under a personal health insurance plan is intended to cover just one person. Such a plan cannot be amended to include a dependant.

Which is Better Corporate Health Insurance or Personal Health Insurance?

Depending on a person’s needs it is important to understand what suits the best. It could be that corporate health insurance may be better for you as compared to personal health insurance because you are a working professional. But if you are out of a job at any point, you are at risk of being uncovered.

Hence, talking to a professional with in-depth knowledge about the same is very important to make informed choices.

The Bottom Line

Be it a corporate health plan or a personal health insurance plan that you opt for, both will serve the purpose. But there are various factors as seen above in deciding what is it that you need the most. Your lifestyle, job, and profession all make a difference in the form of life insurance that you choose.

But it is important to be secured to avoid an unforeseen financial crisis in case of emergencies. This security comes from investing in insurance.

Get Insurance Advice from Insurance Expert

In order to make sure that you are taking the right decisions when it comes to planning your health and life, it is important to choose the right health insurance. This can be done by choosing an expert professional who can help understand your needs and give you the right guidance.


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