Is it advisable to purchase Group Health Insurance from my Bank or to purchase Retail policies?

Hello Leopold,

Here's an extract from one of our articles. In our view, you should not depend on a group insurance policy to cover your lifetime healthcare expenses, even if the costs are attractive.

These bank policies are group policies that have a very different structure from a retail policy. Here are some key differences you should understand before taking a call.

• Group policies may not be renewed for a lifetime. Even if they do, the terms may not be in your control.
• The benefits and terms of group policies are negotiated by the banks every couple of years. The bank can break ties and move you to a different policy that may have different terms and pricing altogether.
• From our experience, we know that banks do not intervene in case of a service issue in a group policy. You are required to directly communicate with the insurance company or the TPA.
• Since the pricing is tightly negotiated, claims are higher for the insurance company - the service in many cases may not be as good as retail policies.

Hey Leo,

Only one advice. Never buy insurance from Bank.