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Porting from corporate insurance
I've topped up my corporate health insurance policy for my parents. Company says we can port the top-up while leaving the organization. I'm sure what does this mean? Does this mean I will get the benifit of pre-existing disease waiver whenever I port?
Are there any points I'd need to be cautious about?
Yes, you can migrate your corporate group health insurance policy for your parents to the same insurer's individual or family floater plan. The fine print is that the insurance company will request for detailed information regarding medical history, claims in the past and current medical condition, may require even a medical test before they approve the migration. It may be simple or tricky depending on the insurance company and the relationship/arrangement that your employer has with the insurance company.
Very valid question. I understand what you are asking.
Porting from corporate to retail plan has following characteristics:
- You can only port to same insurer who is giving the group policy.
- Your employer may have a highly negotiated policy configuration. Porting is allowed only to the nearest matching retail product of the same insurer. In most cases, it may turn out to be disadvantageous because retail plans are not as flexible as corporate policy.
- Fundamentally, your employer can change insurance company every year at the time of renewal. So while porting from corporate to retail policy, you do not get the advantage of time spent in the corporate policy to reduce the waiting period in retail policy after you port. Anyone telling you that waiting period will be relaxed is making a bluff. As a claims specialist, I have not seen any waiting period related claim advantage to people who ported their policies in the past.
- Insurers do not mention the previous policy number in any of these ported policies. This is one way to call out the bluff.
Having said that, you should buy top-up in company policy for your own safety and control your own risk. Company policies provide only limited sum insured of 3-5 lakhs in majority of cases, with no increment in cover over your duration of employment. Top-up helps you cover your risk.
Here's the hack
When you're putting the premium from your pocket, why not buy top-up of same insurer as a retail plan. It continues to give you same advantage of higher cover, and once you leave the organization, you still enjoy the benefit of time spent in the retail plan.
Happy to answer any followup question you may have.
Would you care to share which org you work with, what is the base cover amount and how much top-up are you getting to purchase? Who is the insurance provider for company's policy.