Can Group Health Insurance be Ported to Individual Health Insurance: Switching Process and Benefits?

Group health insurance is highly popular among salaried individuals. It is a type of medical insurance provided by the employer to their employees. This insurance offers numerous health benefits coverage to the employees. As the premium is usually paid by the employer, the employees are always eager to know the benefits that can be availed with the policy. Though there are benefits, the policy also has many limitations in terms of the amount covered, flexibility, and duration. The question relevant to the employees is what happens to the policy when they leave the job?

Well, on leaving the job, you can avail the health insurance portability from group to individual cover. The policy will be transferred to individual health insurance and can be run from your end.

How Advisable is Health Insurance Porting from Group to Individual?

You might think, “Can group health insurance be ported? How advisable is it?” Yes, we must appreciate the health insurance porting option instead of buying a new plan.

If you purchase a new plan, you will get coverage after the new policy waiting period. It might be 2 years or 3 years again, but porting your insurance plan allows you to continue your existing policy benefits, such as the waiting period and no-claim bonus.

1. For your health insurance porting from a group plan to an individual policy, you can continue your accrued continuity benefits. If you complete 2 years from the 3-year waiting period of the existing plan after porting to a new insurer, you may get credit for covering pre-existing disease.

2. In case you did not make any claim in your policy year, porting health insurance allows you to continue the cumulative bonus increase based on the sum insured. A reliable insurer, Bajaj General Insurance, offers 20% to 50% discounts on premiums for no-claim years.

3. Generally, a corporate health insurance policy terminates when the policyholder is on a notice period or the last working day. To continue coverage without any gap, you must port your group insurance to an individual plan with a different or the same insurer.

In case you cannot port your existing health insurance policy, you can purchase an additional plan as a supplement to your coverage. You can run a new standalone insurance plan concurrently with your current one.

Once you complete the waiting period of your new insurance plan, cancel the old plan. This overlapping process can ensure continued safeguards for you and your family, rather than temporary premium overlaps.

Also Read: What are Wellness Benefits in Health Insurance?

Group Health Insurance to Individual Health Insurance Shifting Process

Below is the process of portability of health insurance from group to individual policy:

Selecting the Policy

The foremost step is to compare health insurance plans and select a policy that befits your requirements. Make sure to consider coverage amount, exclusions, benefits, terms, and conditions, etc., of the new policy.

Filling the Paperwork

Once you have selected the policy, fill out the form for porting from group to individual coverage. The details of the existing policy, age proof, claim history, medical history, and any other declarations may be required to attach with the form.

Submission of the Documents

Submit the documents at least 45 days prior to the expiration or renewal of the policy.

Payment of the Premium

After the insurer accepts your documents, they create new underwriting laws and terms and conditions of the policy. It usually takes up to 15 days, after which you can pay the new premium amount of the policy.

Benefits of shifting from Group Health Plan to an Individual Health Plan

The portability of group health insurance will add up many benefits to your new policy, such as:

Comprehensive Coverage

Individual health insurance can be customised as per your health requirements and offers more benefits as compared to the group cover.

Increase in Sum Assured Value

While porting from group cover to individual cover, you get the option to increase the sum assured of the policy cover. However, there may be certain rules of the new insurer that you may need to comply with.

Credit Obtained for the Waiting Period

The credit obtained for the waiting period for pre-existing diseases gets carried forward to a new plan, and you can enjoy its full benefits.

Also Read: Comprehensive Group Mediclaim Policy: Health Insurance for Employees

Disadvantages of Group Medical Insurance Plans for Long-Term

As mentioned above, group insurance plans are not all great and have many limitations. So, let us explore some of the major limitations of group insurance coverage.

1. The employee has no control over their individual coverage as the organisation controls the policy.

2. The policy gets discontinued when you leave the job. However, portability of a group health insurance policy to an individual policy can be done to prolong the benefits.

3. The premium amount is the same for the healthier as well as the high-risk category. In an individual policy, the premium is lower for disease-free people.

4. You have to buy an additional cover if you are looking for specific coverage in the policy.

Things to Consider While Switching from Group to Individual Plans

When availing the portability of group health insurance, you must keep the following pointers in mind:

Consultation with your Current Insurer

As per the IRDAI guidelines, individuals with group plans can switch to individual health insurance plans with the same insurance company after completing the required formalities.

Keep Time Period in Mind

To port your policy, it is mandatory to inform the existing insurer at least 45 days before the policy’s renewal or expiration.

Pre-Medical Checkup May be Required

Some insurers may ask you to get a pre-medical checkup before switching the policy from group cover to individual cover.

Consider the Waiting Period

Typically, there isn’t any waiting period in the group insurance cover, and on portability, you won’t be required to serve any waiting period. However, if there is a waiting period mentioned in the policy, you will have to serve it before porting the policy.

Also Read: Comparing MHCP EDGE+ Benefits for Individuals and Families

Conclusion

Portability of health insurance from group to individual is a perfect option for people who are leaving their job and want to avail the benefits of their existing policy. You can consult our insurance experts for more detailed information.

In response to the question of “can group health insurance be ported?”, start analysing the reasons to switch policy. Conduct market research to choose the best plan that fulfils your healthcare needs. Migrate from group insurance to a family floater or an individual plan to ensure continuous policy coverage benefits without starting from scratch.

FAQs

Can I avail both group and individual health insurance cover?

Yes, it is possible to have two policies at a time.

What happens to my group insurance cover when I leave the job?

The insurance cover gets discontinued. However, you can port it to individual cover.

Can I port my health insurance policy online?

Yes, you can transfer your health insurance policy online. You must notify your current insurer at least 45 days before the renewal date and complete the required portability and proposal forms with the new insurer.

Can a group policy be ported?

Yes, you can transfer from a group health insurance policy to an individual policy. Notify your insurer at least 45 days before the renewal or expiry date and undergo any necessary assessments. The terms of the new policy may differ.

*Standard T&C apply.

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