Here are some things you should be mindful of when opting for a group health insurance scheme-
Coverage Is Linked To Your Membership
A group health plan is issued to you because you’re a part of a group. So, if you're no longer a member of the group, i.e., if your relationship with your group ends, so does the policy.
For instance, the group health insurance plan with your company will end as soon as you leave your job or retire.
The Scheme Can Be Cancelled At Anytime
If things don't work out for the insurer or the group, the insurance scheme might be withdrawn. If this happens, you’ll be left without a cover. In the case of health insurance, however, if the scheme is discontinued, it is the insurer's job to migrate you to a personal plan.
Limited-Time Contract
A group insurance coverage is often a one-year agreement. Based on the claims received in the previous year, the insurance company might evaluate and adjust the pricing and terms of the policy in the following year.
No Control Over Policy Terms And Conditions
Since a group insurance policy is purchased for the whole group, you will have no control over the policy terms, conditions, features, etc. The group owner would choose a policy that would fit their budget and so, they’ll be less bothered about buying a policy that would be suitable for your needs.
Poor Service Can Be An Issue
Normally, banks, corporates, and other group owners would have little or no knowledge of how insurance policies or claims work. Many a time, they'll leave all this entirely in the hands of the insurance company. This means you'll have to contact the insurance company every time you need help.
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