To exercise caution, it is advisable not to solely rely on health insurance provided by your employer. For safety and comprehensive coverage, it is prudent to secure personal health insurance independently and not solely depend on corporate offerings.
Here are the reasons why this approach is encouraged:
Limited Benefits with Sub-Limits:
Company-provided health insurance plans may come with limitations that can affect the scope of coverage. These limitations often manifest as sub-limits on specific medical expenses. For example, a policy might set a cap on the maximum amount it will cover for certain procedures or treatments. This can result in out-of-pocket expenses for employees, especially in the case of significant medical events.
Dependence on Continuous Employment:
The viability of company-provided health insurance is contingent on uninterrupted employment with the organisation. While job security is a valuable aspect of employment, it is not always guaranteed. Various factors such as corporate restructuring, mergers, or downsizing can lead to changes in employment status. If you were to leave the company, voluntarily or involuntarily, you would likely lose access to your employer's insurance plan, leaving you without coverage.
Vulnerability to Policy Changes:
Insurance plans are subject to renewal and adjustments, often on an annual basis. Companies may decide to alter the terms and conditions of their insurance policies during these renewal periods. This could include reducing coverage, increasing premiums, or even discontinuing the plan altogether. Such changes are often made for budgetary reasons or to adapt to shifting industry dynamics. As a result, employees who depend solely on their company's insurance may find themselves facing reduced or inadequate coverage due to these policy alterations.
Potential for Being Underinsured:
Relying exclusively on company-provided insurance can leave individuals vulnerable to being underinsured. When a company modifies or eliminates its insurance offerings, employees may find themselves without adequate protection in the event of a medical emergency or a significant healthcare expense. This situation could lead to financial strain, as individuals would need to cover medical costs out of their own pockets.
Even in the best-case scenario where you enjoy uninterrupted employment until retirement, it is likely that by that time, you may be dealing with some chronic health conditions, which could render you uninsurable.
This is an article by InvestAble
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